FWONK - Citi gets positive on Liberty SiriusXM with Atlanta Braves split-off pending

2023-07-12 14:24:50 ET

Some more machinations at Liberty Media ( NASDAQ: FWONA ) have led Citi to open a positive catalyst watch on tracking stock Liberty SiriusXM ( NASDAQ: LSXMA ).

The coming week brings a vote on a Liberty Media proposal to split off baseball's Atlanta Braves ( NASDAQ: BATRA ), and to reclassify Liberty media into three tracking stocks: Liberty SiriusXM ( LSXMA ); Formula One Group ( FWONA ); and Liberty Live Group.

The resulting reshuffle would mean that as of the close Aug. 3 (after the Braves split-off that would be effective July 18), LSXMA shares would be split into one new Liberty SiriusXM common share and 0.25 shares of tne new Liberty Live.

Liberty Media expects the last day of trading in its Liberty Braves Group common stock -- ( BATRA ) ( OTCQB:BATRB ) ( BATRK ) -- will be July 18, and that Atlanta Braves Holdings Series A and C common stock will start trading on Nasdaq, and Atlanta Braves Holdings Series B on OTC Markets, on July 19 (under the same symbols).

"We ultimately expect investors to vote in favor of the proposal, which would pave the way for a more simplified LSXMA," Citi analyst Jason Bazinet said in opening a positive catalyst watch. "We believe this simplified structure will result in a narrowing of LSXMA’s [net asset value] discount resulting in upside to LSXMA shares from current levels."

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