Sirius XM Receives Proposal From Liberty Media; Stocks Move In Pre-market

(RTTNews) - Sirius XM Holdings Inc. (SIRI), an audio entertainment company, announced on Tuesday that it has acknowledged the receipt of a proposal from Liberty Media Corp. (LSXMK) where it has outlined combining Liberty SiriusXM with Sirius XM to create New SiriusXM.

Sirius XM is evaluating the proposal together with its advisors, Solomon Partners Securities, LLC and Debevoise & Plimpton LLP and it has not made any decisions with respect to the non-binding proposal.

The company advises its shareholders not to take any action at this time.

As per the proposal terms, the assets and liabilities of Liberty SiriusXM tracking stock group from Liberty Media will be split off to form a new company NewCo that will then combine with SiriusXM.

Consequently, the holders of Liberty SiriusXM tracking stock and SiriusXM common stock would all hold one class of common stock of the combined company.

In pre-market activity, shares of Sirius XM are trading at $3.64, down 9.23% and shares of Liberty Sirius are trading at $24.85, up 9.81% on Nasdaq.