ENGLEWOOD, Colo. (AP) — Liberty Media is trying to devour all of Sirius XM in a deal that would value the satellite radio service at nearly $23 billion.
The complex proposal announced Friday would enable Liberty Media Corp. to seize full ownership of Sirius XM Holdings Inc. after it acquired a controlling interest in the company last year.
Liberty Media, an Englewood, Colo., company controlled by billionaire John Malone, owns about 53 percent of Sirius XM's stock, according to a letter filed Friday with the Securities and Exchange Commission.
Under the proposal, each Sirius share would be exchanged for 0.076 shares of Liberty Media's Series C Common stock if the bid is accepted.
Sirius XM stockholders would end up with a 39 percent stake in Liberty Media, whose portfolio already includes ownership of the Atlanta Braves baseball team, and stakes in cable TV and Internet service provider Charter Communications Inc., concert promoter Live Nation Entertainment Inc. and book retailer Barnes & Noble Inc.
The stock swap translates into $3.68 for each Sirius XM share, based on Friday's closing price of Liberty Media's stock. The bid is just 3 percent above Sirius XM's Friday closing price of $3.57 per share. The stock jumped 5 percent to $3.75 in extended trading after the proposal was unveiled.