Analyst Note
| Neil Macker, CFA |Liberty Media held an investor day on Nov. 19 for its portfolio companies, including Sirius XM, Live Nation, and Formula One. Given the crowded nature of the day, much of the information had been disclosed before but there were some interesting new details particularly on the merger and acquisition front. Liberty Media announced the creation of Liberty Media Acquisition Corp., a special purpose acquisition company, or SPAC, that will look to raise $500 million to purchase media and entertainment assets that don’t necessarily fit under one of the three tracking stocks for SiriusXM, Formula One, and Atlanta Braves. However, given the complicated structure of Liberty Media, we would not be surprised if the tracking stocks for Sirius XM and Formula One end up holding some of the 20% of the shares in the SPAC that Liberty plans to hold after the capital raise. We are maintaining our narrow moat ratings and fair value estimates of $5.90, $33, and $50 for Sirius XM, Formula One, and Live Nation, respectively.