Liberty Media spinoff of its interest in Liberty SiriusXM (LSXMK, LSXMA and LSXMB) and merger with SiriusXM Holdings to eventually form Sirius XM Inc (SIRI) - September 2024

Liberty Media completed its spinoff of all classes of its Liberty SiriusXM tracking stocks into a temporary company called New Sirius on 9/9/2024. New Sirius immediately merged with SiriusXM Holdings with Liberty SiriusXM shareholders receiving 0.8375 shares of SiriusXM Holdings shares for each Liberty SiriusXM stock. On 9/10/2024, SiriusXM Holdings changed its name to SiriusXM Inc and its ticker symbol to SIRI and executed a 1 for 10 reverse stock split.

A Form DEFM14C SEC filing for this merger can be found through the SEC EDGAR web site at:

https://www.sec.gov/Archives/edgar/data/908937/000110465924081955/tm2419963-1_defm14c.htm

The companies plan to structure the merger so it is a non-taxable event. We will assume they are successful and will treat this merger as a simple merger followed by a reverse stock split. The information below is based on the information available from a form DEFM14C filed with the SEC. Price information is from websites offering historical prices.

NOTE:The companies state they will endeavor to satisfy the conditions necessary to make this transaction non-taxable. However, there is the possibility the IRS will disagree with their characterization. These instructions assume the companies succeed in their efforts. New instructions will be written, if and when it becomes known the transactions should be treated as a taxable event.

 

The Merger Entry. Go to Accounting > Securities > Record merger of securities in myICLUB. If you are unfamiliar with merger transactions you can get help at this URL: https://www.myiclub.com/faq/article.aspx?id=52

Here is the information needed for SiriusXM shareholders to complete the merger.

  • Date: 9/9/2024
  • Old Security or Merging Company: Liberty SiriusXM (LSXMK, LSXMA,LSXMB) 
  • Cash received: See your broker statement for cash-in-lieu
  • New Security: SiriusXM, Inc (SIRI)
  • New Security Price: 2.67 (Closing price on 9/9/2024)
  • Shares received : 0.8375 x (# of LSXMK, LSXMA or LSXMB shares owned, as appropriate).(Remember to include fractional shares.)For example, if you owned 100 LSXMK, LSXMA or LSXMB shares, you should receive 0.8375 x 100 = 83.75 SIRI shares

Submit the transaction and the merger has been entered.

 

The Stock Split Entry.Go to Accounting > Securities > Record stock split in myICLUB.

Step 1

  • Date: 9/10/2024
  • Symbol: SIRI

Step 2

  • Split ratio: 1 for 10
  • Cash for fractional shares: See your broker statement

Submit the transaction and the reverse stock split has been entered.