SiriusXM to buy back $2bn of shares
January 25, 2018
By Chris Forrester
In a growing sign of fiscal health at pay-radio broadcasters SiriusXM, its Board has approved a $2 billion boost to its existing share buy-back programme. The programme has been in place since early 2013 and the total spent or available now tops $12 billion.
SiriusXM in an SEC filing says the commitment reflects the board’s “desire to continue to return value to stockholders and its confidence in the long-term growth prospects of the Company’s business,” and it stresses that it retains sufficient capital for long-term investments in operations as well as strategic opportunities that may occur.
The broadcaster said it would fund the re-purchase of shares from cash on hand, future cash flow from operations as well as future borrowings.
“The announcement of the extension of the repurchase program reflects the Board’s desire to continue to return value to stockholders and its confidence in the long-term growth prospects of the Company’s business. SiriusXM retains sufficient capital capacity to continue making long-term investments in its programming, research and development initiatives and overall operations, as well as to pursue strategic opportunities that may arise,” said the company’s statement.