8-KOther Events

Liberty Media Corp 8-K Report, Corporate Update (Jun 13, 2018)

Filed June 13, 2018For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation (FWONK) reported via an 8-K filing on June 13, 2018, a significant settlement entered into by its subsidiary, Sirius XM Radio Inc. (SiriusXM), with SoundExchange, Inc. This settlement resolves all outstanding claims and ongoing audits related to sound recording royalties for the period spanning January 1, 2007, through December 31, 2017. The resolution of these legal disputes is a key development for investors as it provides clarity on a potentially material financial obligation. In connection with this agreement, SiriusXM will make a one-time lump sum payment of $150 million to SoundExchange, due on or before July 7, 2018. This payment effectively closes two pending lawsuits, SoundExchange, Inc. v. Sirius XM Radio, Inc., Nos. 13-cv-1290-RJL and 17-cv-02666-RJL. The dismissal of these cases with prejudice signifies a final resolution, removing ongoing legal risk and financial uncertainty for SiriusXM and, by extension, Liberty Media.

Key Highlights

  • 1SiriusXM, a subsidiary of Liberty Media, settled a royalty dispute with SoundExchange.
  • 2The settlement resolves all outstanding claims and audits for sound recording royalties from January 1, 2007, to December 31, 2017.
  • 3SiriusXM will make a one-time payment of $150 million to SoundExchange.
  • 4The payment is due on or before July 7, 2018.
  • 5Two specific lawsuits (SoundExchange, Inc. v. Sirius XM Radio, Inc., Nos. 13-cv-1290-RJL and 17-cv-02666-RJL) will be dismissed with prejudice.
  • 6This settlement brings closure to a significant legal and financial matter for SiriusXM.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce a settlement agreement between Sirius XM Radio Inc. (a subsidiary of Liberty Media Corporation) and SoundExchange, Inc. This settlement resolves all outstanding claims and audits related to sound recording royalties for a specific historical period.

SiriusXM has agreed to pay a one-time lump sum payment of $150 million to SoundExchange.

The settlement payment of $150 million is due on or before July 7, 2018.

The settlement resolves claims and audits under SiriusXM's statutory license for sound recordings for the period from January 1, 2007, through December 31, 2017.