Jan 3 Cable billionaire John Malone's Liberty
Media Corp on Friday said it would offer to buy out the
minority shareholders in satellite radio provider Sirius XM
Holdings Inc for about 3 percent above the stock's
closing value on Friday.
The all-stock buyout offer could be worth more than $10
billion, given that minority shareholders control about 46
percent of the company, which has a market capitalization of
Liberty Media became Sirius's majority owner in January 2013
after U.S. regulators gave it the green light to take control of
the satellite radio operator.
Liberty said on Friday each share of Sirius common stock
would be converted into 0.0760 of a new share of Liberty's
Series C common stock, the equivalent of $3.68 a share.
That is just barely above Sirius XM's closing price of $3.57
on Friday and Liberty Chief Executive Officer Greg Maffei said a
special committee would be formed at Sirius XM to look at the
offer and that it might negotiate a higher price with Liberty.
Liberty said following completion of the deal, Sirius's
public shareholders would own about 39 percent of Liberty's
outstanding common stock.
In 2009, Liberty became the largest shareholder in Sirius
after it floated the company a $530 million loan to help it
avoid bankruptcy. Terms of that deal allowed for Liberty to
convert the loan into preferred shares.
The financially strapped company Liberty rescued in 2009 is
in much stronger shape five years later and has seen its shares
skyrocket more than 2,600 percent over the past five years.
It has gained a key foothold in the vehicles market, which
is seeing a rebound, with its radios in 70 percent of new cars
in the United States.