NEW YORK (TheStreet) -- Shares of SIRIUS XM (SIRI) jumped 7.39% to $2.47 on news that Liberty Media (LMCA) will spin off the Starz cable network into a separate company, providing Liberty with more cash to pursue the satellite radio company and Live Nation Entertainment (LVY).
"This transaction will provide better transparency on the Starz operating business; optimize the Starz capital structure; permit us to better pursue our strategic objectives, including creating two currencies that could be used for acquisitions; and create significant liquidity at Liberty Media, which preserves all our options with respect to SiriusXM and Live Nation," said Liberty CEO Greg Maffei in a statement on Wednesday. Liberty Media owns more than 40% of Sirius common shares.
Sirius also announced plans to sell $400 million of debt, due in 2022. The proceeds from the offering for general corporate purposes, according to a statement released Wednesday. The stock is up 35.71% year-to-date.
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