SiriusXM funds $2bn share buyback
July 16, 2020
By Chris Forrester
US pay-radio operator SiriusXM is ploughing another $2 billion into buying back its own shares. This means that SiriusXM has authorised and bought back a total of $16 billion of common stock since 2013.
The company says it will fund the repurchases through cash on hand, future cash flow from operations, and future borrowings.
SiriusXM confirmed it was buying Stitcher earlier this week, the podcast division of broadcaster E W Scripps for $265 million plus a potential extra $60 million if Stitcher hits some key financial targets this year and in 2021.
In September 2018 it bought music streaming businesses Pandora Media, paying $3.5 billion for the company. Pandora is the largest ad-supported audio entertainment streaming service in the US. SiriusXM and Pandora together reach more than 100 million people each month with their audio products.
A recent business ranking survey from Brand Finance placed Facebook as the ‘Most Valuable’ brand in the US with SiriusXM as its ‘Fastest Growing’ company. SiriusXM will reveal its quarterly results on July 30th.
The current subscriber number exceeds 34.8 million as at the end of Q1.