Liberty Media proposes combination with Sirius XM
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Liberty Media (NASDAQ:LSXMA) said it has approached  Sirius XM (NASDAQ:SIRI) for a proposed combination of the Liberty SiriusXM tracking stock group (NASDAQ:LSXMK) also called LSXM with SIRI to form a new, consolidated public company (New SiriusXM).
In the proposed deal, LSXMA will separate LSXM by means of a redemptive split-off of a newly formed unit of LSXMA, which will own all the assets and liabilities attached to LSXM.
In the split-off, holders of LSXM stock will receive a number of shares of a single series of stock of the split company, calculated by each underlying share of SIRI stock held by the split company being exchanged for 1.05 shares of common stock of New SiriusXM.
Under the deal, the minority shareholders of SIRI will receive a pro rata cash payment.
The pro rata cash payment will be calculated based on the amount of outstanding debt of LSXM, which will be assumed by New SiriusXM in the proposed deal.
Minority shareholders of SIRI will collectively own ~16% of New SiriusXM, and the previous holders of LSXM common stock will hold the rest.
"Libertyâs proposal rationalizes the dual corporate structure between LSXM and SiriusXM and provides value to all shareholders with a more flexible and attractive currency in New SiriusXM,â said LSXMA CEO Greg Maffei.
Shares of SIRI down 10.22% at $3.6 in premarket trade.

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