Liberty Media To Drop Offer For Sirius XM, To Create Two New Tracking Stocks, Shares Rise 7%

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Liberty Media (LMCA, LMCB) said Friday it would create two new tracking stocks where it would assign its holdings, and was taking its offer for total ownership of Sirius XM (SIRI) off the table.

The diversified media group is hoping the new structure will unlock more value in its disparate assets.

The new Liberty Broadband group will consist of Liberty’s investments in Charter Communications (CHTR), Time Warner Cable and True Position Technologies.

The new Liberty Media group will house the company’s 53% interest in Sirius, and its investments in Live Nation Entertainment (LYV)and the Atlanta Braves.

Record holders of Liberty’s Series A and Series B common stock will receive one share of Liberty Media and four shares of Liberty Broadband for each of their existing shares.

Liberty offered to acquire the remaining minority interest in Sirius in January for more than $10 billion, but said that buyout offer “is no longer applicable.”

In late morning trade, LMCA was up 7% to $135.09, with LMCB up 7% to 135.32, SIRI up 1% to $3.40. CHTR was up 0.95% to $126.92 and LYV was up 0.57% to $23.11.

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