Summary
Sirius recently announced its purchase of PayTollo.
Terms of the acquisition were not disclosed.
The company hiked its dividend another 10%.
Sirius XM Holdings (NASDAQ:SIRI) has been very busy in the past few weeks. Recent events included:
- On September 24th, the company announced its proposed acquisition of Pandora Media (NYSE:P) in an all-stock transaction.
- On October 9th, it announced that it would be increasing the quarterly dividend by another 10%.
- On October 11th, Sirius announced that it had acquired PayTollo.
Each of these events will have an impact on cash flow and should contribute to a rather lively earnings conference call on October 24th. This article will look at each of these events and their potential impact on cash flow.
Pandora Media
Even though the acquisition of Pandora has been proposed as an all-stock transaction, with an exchange ratio of 1.44 shares of Sirius for each share of Pandora, there will be cash flow implications. While I intend to try and quantify some of the negative cash flow impacts, investors should be aware that even if the proposed acquisition falls through, there will be cash flow implications.
Pandora's 8-K filing discusses a termination or break-up fee under certain conditions:
