SiriusXM Stock Merger, Live Nation Analyst Upgrade Lead Billboard Global Music Index to New High

SiriusXM Stock Merger, Live Nation Analyst Upgrade Lead Billboard Global Music Index to New High

Music

SiriusXM’s announcement that it planned to merge its stock with Liberty SiriusXM Group, a tracking stock of Liberty Media, helped the SiriusXM share price climb 16.4% to $5.40 this week after it lagged for much of 2023. Friday’s high mark of $5.78 nearly brought the stock back to where it ended 2022, at $5.84 per share. 

The deal, which requires regulatory approval and is expected to be completed in the third quarter of 2024, “will create value for all stockholders by eliminating the tracking stock structure, enhancing liquidity and allowing former LSXM stockholders to participate directly in the ongoing performance of SiriusXM,” said Greg Maffei, Liberty Media president/CEO, in a statement released Tuesday (Dec. 12).

Elsewhere, Live Nation climbed 9.2% to $93.00 this week thanks in part to an investor note by Morgan Stanley analysts that raised the price target to $110 from $100. Analysts pointed to a “secular shift” in consumer spending on experiences, the company’s increased disclosure about its Venue Nation business and a “highly unlikely” chance the Department of Justice will break up the company following its antitrust probe. Morgan Stanley’s $110 price target implies the stock, which is up 33.4% year to date, has 18% upside after Friday’s close.

Those big gains from SiriusXM and Live Nation, as well as a 4.1% gain from Universal Music Group, one of the index’s most valuable components, helped the Billboard Global Music Index increase 2.2% this week to a record 1,522.78. Nine of the index’s 20 stocks finished the week in positive territory, 10 stocks lost ground and one was unchanged.

Other indexes soared this week after the U.S. Federal Reserve held interest rates unchanged on Wednesday (Dec. 13) and indicated it would cut interest rates three times in 2024. The tech-heavy Nasdaq composite set a record closing price of 14,813.92 on Friday, marking a 2.8% gain for the week. The S&P 500 is still 2% away from its high mark after finishing the week up 2.5% to 4,719.19. In the United Kingdom, the FTSE 100 rose 0.3% to 7,576.36. South Korea’s KOSPI composite index gained 1.8% to 2,563.56.

The Billboard Global Music Index’s second-largest increase came from Reservoir Media, which gained 15% to $6.82. The stock’s $6.89 closing price on Thursday was its highest since $7.06 on Feb. 16 and is 31.4% above its 52-week low of $5.19 set on Aug. 10. Chinese music streamer Tencent Music Entertainment gained 8.0% to $8.88. 

Hipgnosis Songs Fund gained 4.9% to 0.701 pounds ($0.89) after the company announced on Monday (Dec. 11) the sale of 20,000 non-core music assets for $23.1 million. The proceeds will be used to pay down its revolving credit facility. On Friday, the company also announced the appointment of Christopher Mills as an independent non-executive director effective immediately. Mills, who has a reputation as an activist investor, is CEO/investment manager of North Atlantic Smaller Companies Investment Trust and founded Harwood Capital Management in 2011. Following the news, Hipgnosis Songs Fund shares rose 2.3% on Friday.

Music streaming company Anghami dropped 30.4% to $0.94, bringing its three-week decline to 66.5%. Other than Anghami, however, no other stock finished the week with a loss greater than 5%. iHeartMedia fell 4.9% to $2.52 and MSG Entertainment dropped 3.2% to $31.16.

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