Liberty Media to merge SiriusXM tracking stock with SiriusXM

In an effort to simplify the ownership structure, Liberty Media announced on Tuesday that the Liberty SiriusXM tracking stock (NASDAQ:LSXMA) will merge with Sirius XM (NASDAQ:SIRI) and create a new public company.

The new public company, known as New Sirius XM, will continue to operate under the SiriusXM name and brand, and keep trading under the "SIRI" ticker symbol on the Nasdaq.

Former Liberty SiriusXM tracking stock (LSXMA) shareholders will own roughly 81% of the new company, while SiriusXM will owe the remaining 19%, the company said in a statement.

The deal has been unanimously approved by Liberty's Board, the SiriusXM Special Committee and SiriusXM's Board of Directors. Greg Maffei is expected to be Chairman of the Board of New SiriusXM and the transaction is slated to be finished by the third-quarter of 2024.

"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," said Maffei, Liberty President & CEO 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. We look forward to remaining meaningfully involved in the business and significant stockholders."

Jennifer Witz, Chief Executive Officer of SiriusXM, said the decision will allow SiriusXM to enter "its next phase of value creation."

"With our strong foundation and as we roll out our next generation platform, we are transforming SiriusXM to drive long-term growth and stockholder value creation," Witz added.

Sirius XM (SIRI) shares were little changed in premarket trading on Tuesday, while the Liberty SiriusXM tracking stock (LSXMA) was up 3.6%.

Liberty Media and SiriusXM will hold a joint conference call for investors at 8:30 AM ET to discuss the transaction.