Liberty Media Corp (NASDAQ:LMCA) Seeks To Buyout Satellite Radio Sirius XM

Posted by Lynn Eisler January 6, 2014 0 Comment 1137 views


Liberty Media Corp (NASDAQ:LMCA), the $17.29 billion market capped TV and broadcasting company has made the first merger and acquisition moves of the calendar year. It announced on December 3, that it is making a bid to buy out full stakes in satellite radio operator Sirius XM by offering a three percent premium on the current share price to the remaining minority share holders in the stock. If this deal which is yet to receive the share holder approval does go through, it is being speculated that the media mogul John Malone to determine the extent and the counters of its cable and broadcasting business.

Active M & A Player

Readers should note that Liberty Media Corp (NASDAQ:LMCA) has been active in the acquisition market for cable operators.  It has been contemplating moves to increase its currently substantive stake in Charter communications. It has also shown interest in buying out the much larger Time Warner Cable Inc and has been seen beefing up its war chest to mount such a takeover bid.

Seeking To Add Muscle

Greg Maffei, Chief Executive Officer of Liberty Media Corp (NASDAQ:LMCA) has indicated as much in an interview wherein he has been quoted as saying, “One scenario this deal allows for could be for Liberty to acquire more Charter stock. I’m not suggesting this is correct but one supposition could be that this allows us to go make incremental investments in Charter, to maintain our stake in Charter because we have access to the cash flow at SIRI and the borrowing capacity at SIRI. That’s one way that (it) could help get the Time Warner Cable deal done.”

Big Picture

If the deal with Sirius XM does come through, Liberty Media Corp (NASDAQ:LMCA) will boost its ranking amongst the various media operators as its market cap is expected to balloon into $27 billion post the merger.



About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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