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Sirius XM Has Best Q1 Since 2008

Summary

Sirius Q1 subscribers achieve highest Q1 net add numbers for total subs since 2008.

New Liberty tracking stocks to begin trading on April 18th.

Sirius investors could see an impact to the share price even though it is Liberty issuing the trackers.

Listen, my children, and you shall hear Of the midnight ride of Paul Revere, On the eighteenth of April, in Seventy-Five: Hardly a man is now alive Who remembers that famous day and year.

- From The Midnight Ride Of Paul Revere by Henry Wadsworth Longfellow

Aside from this being the start of one of my favorite poems, and one of the more memorable ones that many from my generation read in English class, there were a couple of interesting tie-ins this past week to Sirius XM Holdings (NASDAQ:SIRI). From a historical perspective, the warning spread by Paul Revere, William Dawes and Samuel Prescott brought the Minutemen together and preceded the battle of Lexington and Concord. That battle was not only "the shot heard 'round the world," but it was also the start of the American Revolution, or the War for Independence.

Many Sirius investors consider the company to be battling Liberty Media, along with John Malone, chairman of Liberty Media (NASDAQ:LMCA) and Greg Maffei, Liberty CEO and Sirius XM chairman. These investors want the company to fight for its independence rather than be acquired by Liberty for a small premium. That "battle" began more than seven years ago, when Sirius was about to default on a loan and Liberty loaned Sirius half a billion dollars in exchange for the right to buy 40% of the company for $12,500. Over the years, a number of "hostile" events occurred:

  • Liberty began buying additional shares in the open market and through forward purchase contracts.
  • The company sought de facto control of the Sirius FCC licenses in 2012.
  • Liberty went to majority control in early 2013.
  • It made a takeover offer in early 2014.

On Friday, Liberty issued a press release, stating the company:

completed a previously announced transaction whereby it

recapitalized its existing common stock into three new tracking stocks: the Liberty Braves...

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