8-KOther Events

Liberty Media Corp 8-K Report, Corporate Update (Nov 21, 2019)

Filed November 21, 2019For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation (FWONK) announced on November 21, 2019, a significant expansion of its common stock repurchase program. The Board of Directors authorized an additional $1 billion for share repurchases, enhancing the existing program which had approximately $419 million remaining as of October 31, 2019. This move signals management's confidence in the company's valuation and its commitment to returning capital to shareholders. The expanded program allows for flexibility in how repurchases are executed, including open market transactions, self-tender offers, and privately negotiated deals, potentially utilizing Rule 10b5-1 plans. Importantly, the repurchases can apply to shares of Liberty SiriusXM, Liberty Formula One, and Liberty Braves common stock, using funds attributed to each respective group. A notable provision allows for the repurchase of Liberty SiriusXM common stock using Formula One Group funds to address potential liabilities related to 2013 convertible notes and warrants.

Key Highlights

  • 1Authorization of an additional $1 billion for common stock repurchases, substantially increasing the available capital for buybacks.
  • 2The repurchase program encompasses shares across Liberty SiriusXM, Liberty Formula One, and Liberty Braves common stock.
  • 3Flexibility in repurchase methods, including open market, self-tender, and private negotiations (potentially under Rule 10b5-1).
  • 4Potential use of Formula One Group funds to repurchase Liberty SiriusXM shares for mitigating convertible note and warrant liabilities.
  • 5Repurchased 'Intergroup Shares' will be cancelled, creating an intergroup interest of the Formula One Group in the Liberty SiriusXM Group.
  • 6As of October 31, 2019, approximately $419 million remained under the existing repurchase authorization prior to this increase.

Frequently Asked Questions

The Board of Directors authorized an additional $1 billion for common stock repurchases, on top of the approximately $419 million that remained under the existing program as of October 31, 2019.

The program covers repurchases of shares of Liberty SiriusXM common stock, Liberty Formula One common stock, and Liberty Braves common stock.

Yes, shares of Liberty SiriusXM common stock may be repurchased using funds attributed to the Formula One Group. This specific action is intended to mitigate potential liabilities associated with the company's 2013 convertible notes and warrants. Such repurchased shares will be cancelled.

The repurchases can be effected through various methods, including open market transactions, self-tender offers, and privately negotiated transactions, which may include derivative transactions and plans established under Rule 10b5-1.