Liberty Media (LMCA) announced that it was ending its bid to acquire all of Sirius XM Holdings (SIRI) as it plans to launch two tracking stock for its operations. The news sent LMCA shares up more than 7%, while SIRI stock gained more than 1%.
LMCA said that it will create tracking stocks for its Liberty Broadband Group and its Liberty Media Group. LMCA shareholders will have to approve the creation of the new tracking stocks, the Associated Press notes.
Liberty Media said the Liberty Broadband Group tracking stock would cover its cable TV business and debt obligations, while the Liberty Media Group tracking stock would include the reminder of its operation and debts. The new tracking stocks are expected to be launched by the third quarter of this year.
LMCA currently has a 53% stake in Sirius XM. Earlier this year, LMCA had sought to purchase the remaining shares in the satellite radio provider.
On Thursday, LMCA stock closed at $126.14 a share. LMCA stock has gained more than 13% over the past year.