Liberty Media wants to take full ownership of Sirius XM in a deal that would value the satellite radio service at nearly $23 billion.
Englewood, Colo.-based Liberty Media Corp., a media holding company, already owns 53% of Sirius XM Holdings's outstanding shares, according to a regulatory filing Friday.
Liberty is offering to exchange some of its Series C common stock for the rest of Sirius XM's shares.
The swap translates into $3.68 for each Sirius XM share, based on Friday's closing price of Liberty Media's stock. The bid is just 3% above Sirius XM's Friday closing price of $3.57 per share.
The offer values New York-based Sirius XM at just under $23 billion, based on company's 6.1 billion outstanding shares as of Oct. 22.
The Motley Fool owns shares of Liberty Media. and Sirius XM Radio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.