Liberty Media's proposal to recombine Liberty SiriusXM Group (LSXMA) with Sirius XM Holdings Inc. (SIRI), is clearly a positive for Liberty shareholders and the catalyst to close the 40% NAV discount.
Yes! Though closing isn't expected until Q3/4, the SiriusXM's discount lingers due to required tax and shareholder approvals. This delay complicates possibilities for cost-effective hedging, which I'm currently exploring in an update. Berkshire's Friday purchases are also encouraging.
Very interesting write up. I'm long LSXMA, this seems like free money. Buffett and Klarman are in.
Thanks! Agreed hedging SIRI is the best way to lock in the profit. Will write a follow up analysis to this idea soon
There is still about a 34% discount. Buffet continues to buy. Any comments?
Yes! Though closing isn't expected until Q3/4, the SiriusXM's discount lingers due to required tax and shareholder approvals. This delay complicates possibilities for cost-effective hedging, which I'm currently exploring in an update. Berkshire's Friday purchases are also encouraging.