Posted by & filed under Accounting Principles, Corporate Restructuring.

Description: It appears that the owners of the Canadian arm of Sirius XM radio are planning to take the company private. This means that the US bsed company SiriusĀ  XM Holdings Inc and several major Canadian investors will have to acquire the shares that are publicly held, estimated at over 30 percent of over 100 million shares outstanding. Sirius has about 2.7 million subscribers in Canada and its subscription list is growing.

Source: Globeandmail.com

Date: February 11, 2016; last updated February 12, 2016

Link: http://www.theglobeandmail.com/report-on-business/streetwise/sirius-xm-canada-set-to-transition-toward-private-company-ownership/article28735215/

Discussion Points:

1) What might be some of the reasons that investors would have for wanting to take the company private?

2) Although Sirius has been growing, its stock price has fallen about 40 % in the last year. What might be some reasons for this?

3) What are some of the accounting considerations that the CFO will have to consider if the company goes private?

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