Sirius XM (NASDAQ:SIRI) announced on Thursday that it will repurchase $2 billion in shares and will issue a special dividend of 5 cents a share to be paid to shareholders on December 28.
Investors liked the news, sending Sirius XM shares up about 2% in Thursday morning trading.
The satellite radio company indicated that Liberty Media (NASDAQ:LMCA), its largest shareholder, will be involved in the share purchase program in order to maintain the size of its current 49.8% stake, Forbes noted.
Sirius XM noted that it will pay for the share buybacks through revolving loans and cash flow. Company officials said Sirius XM would retain sufficient capital to continue to invest in its programming and infrastructure.
The special dividend, which will cost the company $325 million, will be payable to investors who own company shares on December 18.