The Liberty SiriusXM Group – Gabelli Research Analyst John Tinker

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The Liberty SiriusXM Group – Gabelli Research Analyst John Tinker
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The Liberty SiriusXM Group – Gabelli Research Analyst John Tinker

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SALT New York 2021: Wences Casares And Peter Briger On The Macro Case For Bitcoin

BitcoinAt this year's SALT New York conference, Wences Casares, the chairman of XAPO, and Peter Briger, the principal and co-chief executive officer of Fortress Investment Group discussed the macro case for Bitcoin. Q2 2021 hedge fund letters, conferences and more XAPO describes itself as the first digital bank of its kind, which offers the "convenience" Read More

Hi. My name is John Tinker. We are recommending Liberty SiriusXM as both a play on the consolidating radio business and an inexpensive way to buy Sirius XM.

Sirius XM is a satellite radio provider with 33M subscribers and also controls Pandora Media which has 75M unique streaming music listeners. We also recommend SIRI as it is buying back 10% of its stock every year.

LSXMA, in conjunction with SIRI, is offering to acquire 40% of iHeart as part of its proposed bankruptcy filing due to $20B of debt. iHeart is the largest terrestrial radio station operator in the US. The opportunity is similar to Liberty taking control of a near bankrupt SIRI with its original 40% investment in 2009.

Liberty Media, controlled by John Malone, has 3 tracking stocks, which enable investors to own the assets they are most interested in. Tracker LSXMA’s principal asset is 3.2B shares, over 70%, of SIRI.

Tracking stock usually trade at a 10% discount to reflect the greater complexity..

LSXMA intend to shrink their discount which has expanded to 27% and have issued $400M debt to buy back its own stock and in doing so effectively buying SIRI at $4.70 per share rather than its current price of $6.48

Other LSXMA investors include Berkshire Hathaway who own 13.4%.

We recommend purchase of LXSMA with a PMV of $69 per share.

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