Pushing shares higher, Liberty Media (LMCA) made an offer on Friday to acquire all outstanding Sirius shares in a full-ownership takeover of the satellite radio company. The broadcasting giant already holds a majority stake but seeks to make Sirius an 100%-owned entity.
Sirius' Board received a non-binding offer letter from Liberty outlining a proposal for shares not owned by Liberty to be converted into the right to receive 0.0760 of a new share of Liberty's common stock. The exchange puts Sirius stock at a $3.68 value based on Liberty's closing share price last week.
Should the transaction be completed, Sirius' public stockholders would own around 39% of Liberty's outstanding common stock.
TheStreet Ratings team rates Sirius XM Holdings Inc as a Buy with a ratings score of B. The team has this to say about their recommendation:
"We rateSirius XM Holdings Inc (SIRI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."