Liberty Media and SiriusXM have agreed to amend the merger agreement announced last December to combine Liberty’s tracking stock with the company itself.

Liberty Media owns approximately 80% of SiriusXM through its LSXM tracking stock and originally the deal would’ve seen both existing companies receiving one share of the new combined company for each share they held. The amended deal will change that to each shareholder gaining 1 share of the new company for every ten shares of SiriusXM common stock in order to reduce the number of shares of the new company’s common stock by 90%, while fractional shares will be given a cash payout.

The companies state that the amendment is “intended to preserve the economics of the Transactions announced in December 2023, while reducing the number of shares of New Sirius Common Stock that would be outstanding immediately after the closing of the Transactions” and will “more closely align the nominal share price of New Sirius Common Stock immediately after the closing of the Transactions with the price of the shares of Liberty SiriusXM Common Stock being redeemed in the Split-Off, and increase the nominal price per share of New Sirius Common Stock, which is designed to help improve trading dynamics in the stock and potentially increase its attractiveness to investors.”
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The new SiriusXM holding company will convert from a Delaware corporation to limited liability company prior to closing.