{"id":53677,"date":"2023-09-29T21:03:02","date_gmt":"2023-09-30T01:03:02","guid":{"rendered":"https:\/\/www.cyberlego.com\/web\/2023\/09\/29\/siriusxm-shares-rise-11-after-liberty-media-offers-to-combine-stocks\/"},"modified":"2023-09-29T21:03:02","modified_gmt":"2023-09-30T01:03:02","slug":"siriusxm-shares-rise-11-after-liberty-media-offers-to-combine-stocks","status":"publish","type":"post","link":"https:\/\/www.cyberlego.com\/web\/2023\/09\/29\/siriusxm-shares-rise-11-after-liberty-media-offers-to-combine-stocks\/","title":{"rendered":"SiriusXM Shares Rise 11% After Liberty Media Offers to Combine\u00a0Stocks"},"content":{"rendered":"

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\n\tSiriusXM shares rose 11.1% to $4.52 this week following an offer from Liberty Media on Tuesday (Sept. 26) to combine its tracking stock, The Liberty SiriusXM Group, with SiriusXM\u2019s stock to form a new public company. <\/p>\n

\n\tLiberty Media, which owns 83% of SiriusXM\u2019s outstanding shares, proposed a complicated transaction that would \u201cprovide value to all shareholders with a more flexible and attractive currency\u201d in the newly formed SiriusXM stock, Liberty Media president\/CEO Greg Maffei<\/strong> said in a statement<\/a>. SiriusXM said in a statement<\/a> that a special committee of its board of directors is evaluating the proposal and provided no assurance a deal would eventually happen. <\/p>\n

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\t\t\t\t\t\t\"Neil<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

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\t\t\t\t\tNeil Young Is Still Off Spotify \u2014 Here\u2019s What It\u2019s Costing\u00a0Him\t\t<\/p>\n<\/h3><\/div>\n

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\n\tThe effect appeared to be a short squeeze \u2014 albeit one smaller than the instance that inflated SiriusXM\u2019s share price by 49% in one week in July<\/a>. Because SiriusXM shares are heavily shorted and have a small float, sudden demand for the stock can create large price fluctuations. SiriusXM shares rose 15% on Thursday (Sept. 28) alone, while shares of The Liberty SiriusXM Group tracking stock finished the week up 13.4%.\u00a0<\/p>\n

\n\tWhile overall stocks were mixed this week, music stocks performed well. The 21-stock Billboard Global Music Index improved 1.1% to 1,344.99, better than the 0.1% gain eked out by the tech-heavy Nasdaq composite and easily besting the S&P 500\u2019s 1.3% loss. In the United Kingdom, the FTSE 100 fell 1%, while South Korea\u2019s KOSPI composite index dropped 1.7%.\u00a0Eleven of the Billboard Global Music Index\u2019s 21 stocks finished the week in positive territory, eight lost ground and two were unchanged. <\/p>\n

\n\tHelped by Deezer\u2019s double-digit improvement, streaming stocks had an average gain of 3.1%. Chinese music streamers Cloud Music and Tencent Music Entertainment gained 6.5% and 1.3%, respectively. Spotify shares dropped 2.1% to $154.63 but have gained 95.9% year to date. LiveOne shares fell 8.6% to $0.96, marking its third successive weekly loss since spinning off its PodcastOne division. This week, Billboard<\/em> reported<\/a> that LiveOne took out a high-interest loan to lure UFC fighter-turned-podcaster Brendan Schaub after Kast Media failed to pay him advertising money. LiveOne agreed to acquire Kast Media in May and offered Schaub and other podcasters settlements that included a mix of cash, promissory notes and PodcastOne stock.<\/p>\n

\n\tMusic\u2019s greatest gainer this week was French streaming company Deezer.\u00a0 Despite there being no news \u2014 neither a press release nor a regulatory filing \u2014 that normally leads to such a substantial change, Deezer shares rose 21.8% to 2.735 euros ($2.90), including a 14.8% gain on Thursday with one of the highest trading volumes since the company went public in September 2022. Nothing indicated the company has substantially improved its earnings outlook in recent days, but Deezer had been in the news prior to this week. Three weeks ago, Deezer announced a partnership with Universal Music Group<\/a> to create a new system for calculating artist royalties; and last week, the company revealed plans to increase subscription prices for new individual and family plans in the United Kingdom, Spain, Italy, the Netherlands and its largest market, France.\u00a0<\/p>\n

\n\tLive Nation shares rose 4.1% to $83.05 following news the company will help developing artists<\/a> by providing a financial stipend and eliminating fees charged on merchandise sales at a number of its owned and operated clubs in the United States. Although the move will cost Live Nation money, it also comes with some strategic advantages, according to LightShed Partners analyst Brandon Ross<\/strong>. The decision is \u201cgreat for Live Nation because it actually throws up another barrier to entry,\u201d Ross said in the Friday (Sept. 29) episode of the LightShed podcast<\/a>. \u201cArtists are going to want to play your venue where the economics for them are better rather than somebody else\u2019s venue.\u201d<\/p>\n