Malone, who already holds a nearly 53 percent stake in Sirius XM, has offered investors $3.68 per share. However, many investors – including former consumer advocate and presidential candidate Ralph Nader – think Malone’s share price offer is far too low.
Nader pointed to Sirius XM’s strong fundamentals, as well as the stock’s recent peaks as reasons why the Liberty Media chairman’s offer was bad for minority shareholders. “It’s recording better results every quarter,” Nader told Talking Numbers in an exclusive interview. “They have a four-star buy rating under Standard & Poor. They’re about to start paying dividends. They have brought in a half-million more subscribers in recent months. They’re up to 25 million monthly subscribers to their satellite radio service.”
Even without a full picture of both companies’ finances, Nader noted that a starting offer should not be lower than a recent stock price peak. “A few weeks ago, it went as high as $4.15,” said Nader per Talking Numbers. “So, when John Malone offers $3.68 — which can go do because it’s a stock exchange, not a cash payment to the shareholders to buy them out — he’s lowballing it.”
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