Audio entertainment company SiriusXM and mass media company Liberty Media Corporation might soon combine Liberty SiriusXM tracking stock group with Sirius XM to create a new company — New SiriusXM. A committee of independent directors from the company’s board received a transaction proposal from Liberty Media, according to a Tuesday release.
Liberty Media Corporation owns about 83% of SiriusXM — which operates both SiriusXM and Pandora — as of July 31, 2023, according to its website.
If the transaction goes through, both Liberty SiriusXM tracking stock and Sirius XM common stock would hold the same common stock under the new company. SiriusXM said stockholders don’t need to take any action at this time.
The committee, Solomon Partners Securities and Debevoise & Plimpton are evaluating the proposal, but SiriusXM said there’s no guarantee that the sale will go through. The company said it wouldn’t share developments on the possible deal until the transaction is approved or otherwise.
In March, Sirius XM said it planned to shift its focus away from satellite to streaming in the future. Streaming would offer several benefits for SiriusXM like offering more stations than its satellite service can hold and lower costs. In addition, streaming would eliminate the need for SiriusXM to replace its satellites.
It’s unclear at this time if the possible merger with Liberty Media Corporation corresponds with the March announcement.
As of the first quarter of 2023, SiriusXM had about 34 million U.S. subscribers, according to Statista.