Liberty Media Corp. has abandoned plans to acquire SiriusXM Radio, in which it owns 53 percent, after reclassifying its stock into two tracking stocks, Liberty Broadband Group and Liberty Media Group, according to Billboard.
Liberty Broadband will house the company’s interests in Charter Communication, Time Warner Cable and digital security firm TruePosition. Liberty Media will house other the company’s other interests, including its share in SiriusXM.
“This is another step in Liberty’s process of offering investors greater choice, transparency and focus,” said Liberty president and CEO Greg Maffei. “We expect to complete the creation of the new tracking stocks by the third quarter. In light of the tracking stock distribution, our offer for Sirius XM is no longer applicable.”
Current shareholders will receive one share of Liberty Media tracking stock and four shares of Liberty Broadband, for each share of Liberty A and B stock they currently hold.
The company had planned on acquiring SiriusXM for $3.68 per share. This week, shares of SiriusXM fell one percent to $3.37.
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