Investors are rejoicing that Liberty Media (NASDAQ: $LMCA) is no longer interested in buying the remaining portions of Sirius XM (NASDAQ: $SIRI) it doesn’t already own. Sirius closed Friday at $3.44, up over 2% from Thursday’s close of $3.37 although down 1.4% for the year to date.
Investors, including consumer advocate and one-time presidential candidate Ralph Nader, believed they were being lowballed on the price offered by Chairman John Malone, whose Liberty Media has a 53% stake in the satellite radio company. Malone offered $3.68 a share in January to buy out the rest of the company.
[Become a Better Investor in 14 days: Click for Your Free Trial]
With Liberty out of the picture for now, Sirius didn’t waste any time taking control of the story. The company said it’s resuming its $2 billion share repurchase program, which was put on hold pending a resolution to Liberty’s offer. The company also reaffirmed its guidance for 2014.