No. of Recommendations: 2
“If (big IF) SIRI continues to trade where it stands today, the upside is around 50%.”
Anyone here investing alongside BRK/Ted into this Liberty tracking stock? At first blush, does seem appealing vs. SiriusXM shares and could be lucrative if one is patient for 6-9 months until all shareholders are “unified” under the soon to be new SIRI. Will be interesting to see if they sell after the “work out” is complete or retain the new SIRI. BRK currently owns around $2B of the tracking stock.
From Liberty’s site:
https://www.libertymedia.com/investors/news-events...“If the Net Liabilities Share Adjustment and the adjusted fully diluted shares of LSXM were calculated as of June 30, 2024, the Exchange Ratio is estimated to be approximately 8.4 shares in New SiriusXM for each share of LSXM held.
Pro forma for the transaction, and assuming the adjustment described above, at June 30, 2024, there will be approximately 3,392 million basic shares outstanding of New SiriusXM, of which former LSXM stockholders will own approximately 81% of New SiriusXM, with the SiriusXM minority stockholders owning the remaining 19%.”
Found this info interesting as well:
“SiriusXM has more than 155 million SiriusXM-enabled vehicles on the road, 34 million paid subscribers with near record low churn and continues to roll out its 360L platform and expand its electric vehicle footprint…
The Company does not expect any change to its existing dividend policy while de-emphasizing repurchases until it reaches its long standing leverage target of low-to-mid 3x adjusted EBITDA. Over the last three years, SiriusXM has returned approximately $4.4 billion to stockholders through a combination of dividends, special dividends and share repurchases. The Company has no bond maturities until 2026 and expects to end 2023 with approximately $2 billion of available liquidity, plus committed financing of another $1.1 billion in support of this transaction.”
