Sirius XM Radio (NAS: SIRI) has declared a special cash dividend of $0.05 per share and approved a $2 billion common stock repurchase program, the company announced today. The dividend will be paid on Dec. 28 to shareholders of record as of market close on Dec. 18.
The stock buyback program will total up to $2 billion, although the company did not specify the timing of the initiative, saying only that such factors "will be determined based on the Company's evaluation of market conditions and other factors and the program may be discontinued or suspended at any time."
Liberty Media Corp. (NAS: LMCA) , the beneficial owner of 49.8% of the company's stock, intends to participate in the repurchases on a pro rata basis so its relative ownership interest won't be affected by the program, Sirius said.
In its statement, the company said that it expects the total amount of the special dividend will be roughly $325 million. "The combined announcement reflects the Board's desire to return value to stockholders and its confidence in the long-term growth prospects of the Company's business," said the company.
The article Sirius XM Announces Special Dividend and Stock Buyback originally appeared on Fool.com.
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