logo
  Join        Login             Stock Quote

Sirius XM (SIRI) Gains After $2B Share Repurchase, Special Dividend Plans

 December 06, 2012 09:40 AM
 


(By Balachander) Sirius XM Radio Inc. (NASDAQ: SIRI) announced a $2 billion share buyback plan and declared a special cash dividend of $0.05 per share.

Liberty Media Corp. (NASDAQ: LMCA), which owns roughly 49.8 percent of SIRI shares, has indicated that it will participate in the share repurchases on a pro rata basis so that its relative ownership interest will not be affected by the program.

The New York-based provider of satellite radio services said it will fund the share buyback through cash on hand, future cash flow from operations and borrowings under its revolving credit facility.

[Related -Sirius XM Holdings Inc. (SIRI): Turning The Dial To $4.20 Per Share?]

The company's special cash dividend is payable on December 28, 2012 to stockholders of record as of the close of business on December 18, 2012.

Sirius XM, which has 23.4 million subscribers, expects the total amount of the cash dividend to be about $325 million.

"The combined announcement reflects the Board's desire to return value to stockholders and its confidence in the long-term growth prospects of the company's business," Sirius XM said in a statement.

Sirius XM's announcement on Thursday "will not derail the eventual takeout of the company by Liberty Media," Piper Jaffray wrote in a note seen by theflyonthewall.com.

SIRI shares, which have been trading in the 52-week range of $1.70 to $2.97, gained 2.17 percent to trade at $2.83 on Thursday. LMCA shares rose 1.51 percent to trade at $108.01.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageMBIA Inc. (MBI) : BTI's $12 a Tough Task

MBIA Inc. (NYSE:MBI) is doing well on a day stocks are struggling The guarantee insurance company is the read on...

article imageUrban Outfitters, Inc. (URBN) Q2 Earnings Preview: A Snug Fit

Urban Outfitters, Inc. (NASDAQ:URBN) will hold a webcast to discuss its second quarter of fiscal-year 2015 read on...

article imageEstee Lauder Companies Inc. (EL) Q4 Earnings Preview: Options Player Betting On EL’s EPS Looking Pretty

Estee Lauder Companies Inc. (NYSE:EL) will release fiscal 2014 fourth quarter and full year financial read on...

article imageHerbalife Ltd. (HLF): 3 Reasons To Pay Attention to Recent Insider Buying

Well, well, well… it looks as if boardroom buyers viewed the recent selloff as an opportunity to buy. read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.