Liberty Media (NASDAQ:LINTA) and audio entertainment company Sirius XM Radio (NASDAQ:SIRI) announced that they have entered into an agreement whereby Liberty Media (NASDAQ:LINTA)'s business Liberty SiriusXM Tracking Stock Group (LSXM), which holds a majority stake in SiriusXM, will combine with SiriusXM and form a new public company.
The new company will operate under the SiriusXM name and brand and its stock is expected to continue to be traded on the Nasdaq Global Select Market under the ticker symbol “SIRI,” the companies said in a statement on Tuesday.
“This combination will create value for all stockholders by eliminating the tracking stock structure, enhancing liquidity and allowing former LSXM stockholders to participate directly in the ongoing performance of SiriusXM," Liberty Media CEO Greg Maffei said in a statement.
“SiriusXM commands the largest paid share-of-ear in the car and has proven itself as an incredibly successful and profitable business. We are confident SiriusXM will continue to create value by building on its resilient business model to execute its strategic initiatives.”
SiriusXM CEO Jennifer Witz added: “We are pleased that the Special Committee of our Board of Directors has reached this agreement with Liberty Media, which will allow SiriusXM to enter its next phase of value creation.”
Shares of the LSXM rose 1.15 on the news to US$26.93 while SiriusXM stock had gained 2.3% at US$5.14 in the early afternoon on Tuesday.