Sirius XM Radio (SIRI +0.00%) reports quarterly results next week, but the stock has been stagnant for weeks.
Ever since Liberty Media (LMCA +0.00%) achieved majority control of the satellite radio provider earlier this year, the market's biggest fear is that John Malone's eclectic media empire will spin off Sirius XM. It hasn't had a problem spinning off other investments in the past.
This doesn't have to be the end of the world. Liberty Media's most recent spinoff was Starz (STRZA +0.00%), and that has worked out pretty well. Starz opened at $14.15 in January after it was spun off by Liberty Media, and the stock is trading roughly 60% higher now.
Yes, there are larger float concerns with Sirius XM, but the leader in premium radio has been preparing for this day with a massive buyback authorization. In this video, longtime Fool contributor and Sirius subscriber Rick Munarriz argues that the company's fundamentals are strong enough to withstand being spun off.
