Last Friday, Liberty Media (LM) abandoned its bid to acquire full ownership of satellite radio operator Sirius XM Holdings as LM officials confirmed that the company will instead create new tracking stocks in an effort to raise funds for new business opportunities. LM, which already holds a controlling 53% stake in Sirius, offered in January to acquire remaining Sirius stock in a $10 billion transaction through which shares of Sirius stock would be converted into shares of LM stock. At the time of January’s announcement, LM CEO Greg Maffei told reporters that his company was pursuing the buy-out to simplify Sirius’s ownership structure and to enhance LM’s access to capital “to support the pursuit of other potential attractive investment opportunities.” Analysts had also touted the buy-out as a means of leveraging LM’s initial $530 million investment in Sirius which, since 2009, has soared in value to more than $10 billion. In lieu of the buy-out plan, LM said it would create two new tracking stocks to be known as Liberty Broadband Group (LBG) and Liberty Media Group (LMG). LBG will encompass LM’s cable holdings, including LM’s 25% stake in Charter Communications. LM confirmed that it will conduct a concurrent rights offering for which proceeds will be attributable to LBG. Remaining LM businesses that include Sirius, meanwhile, will be held as parts of LMG. Anticipating establishment of the new tracking stocks by the third quarter, Maffei explained in a press statement that, “in light of the tracking stock distribution, our offer for Sirius XM is no longer applicable.” Maffei emphasized, however, that “we remain enthusiastic owners of 53% of Sirius XM,” noting that, “depending on market conditions, we look forward to further discussions with the Sirius XM Special Committee.”