A New ‘SIRI’ Is Born — Liberty Media, Sirius XM Complete Spin-Off & Merger

Photo Credit: Sirius XM

Sirius XM Holdings Inc. has officially commenced operations as an independent public company following the closure of its transaction with Liberty Media.The merger was first disclosed in December 2023 as a way to streamline the satellite broadcaster’s capital structure. Liberty spun-off its LSXM tracking stock and then combined with Sirius XM, with Liberty shareholders receiving one share of the new company for each share they hold. Current SiriusXM shareholders would also receive one share of the new company. Liberty shareholders will continue to hold 81% of the company with the public holding the other 19%.

Sirius XM Holdings will have a single outstanding series of common stock and began trading at market open today on the Nasdaq Global Select Market under the ticker ‘SIRI.’ Liberty Media’s Liberty Formula One common stock and Liberty Live common stock will continue trading following the split-off and merger.

As a ‘new’ company, Sirius XM has reiterated its financial projections for 2024, expecting total revenue of around $8.75 billion, adjusted EBITDA of approximately $2.7 billion, and free cash flow of about $1 billion. These forecasts take into account an estimated $200 million in transaction-related costs, which includes closing expenses and additional interest expenses tied to the Liberty Media transaction.SiriusXM also announced the continuation of its dividend program, post-adjustment for the Liberty Media transaction exchange ratio—at roughly 27 cents per quarter. Additionally, a $1.166 billion common stock repurchase program has been authorized.

“Today SiriusXM embarks on a new phase in our journey as an independent public company, building on our leading position in audio entertainment,” says Sirius XM CEO Jennifer Witz. “We’ve created a strong and profitable business, anchored by subscription service that fosters deep and loyal connections with our listeners and a growing digital audio advertising platform which extends our reach to fans around the world, and we are excited about the future as we look to expand and strengthen both platforms.

“As we enter our next phase as an independent company, we expect SiriusXM to continue delivering solid, profitable results,” CFO Thomas Barry adds. “After completing the transaction…our capital allocation priorities are consistent—investing in our business, focusing in the near-to-mid-term on reducing debt to return to our long-term target leverage, and continuing our capital return posture.”