Exhibit 99.2
Liberty Media Corporation
Condensed Pro Forma Consolidated Financial Statements
(unaudited)
Introduction
On December 11, 2023, Liberty Media Corporation, a Delaware corporation (“Liberty Media” or the “Company”), entered into definitive agreements, which were amended on June 16, 2024, whereby, subject to the terms thereof, Liberty Sirius XM Holdings Inc., a Delaware corporation and a wholly owned subsidiary of Liberty Media (“New Sirius”), would split-off from Liberty Media (the “Split-Off”), and Radio Merger Sub, LLC, a Delaware limited liability company and a wholly owned subsidiary of New Sirius, would combine with Sirius XM Holdings Inc., a Delaware corporation, to create a new public company, which would be renamed “SiriusXM Holdings Inc.”
On September 9, 2024 at 4:05 p.m., New York City time, Liberty Media completed the Split-Off. The Split-Off was accomplished by Liberty Media redeeming each outstanding share of Liberty SiriusXM common stock, par value $0.01 per share, in exchange for 0.8375 of a share of New Sirius common stock, par value $0.001 per share, with cash being paid to entitled record holders of Liberty SiriusXM common stock in lieu of any fractional shares of common stock of New Sirius.
The following unaudited condensed pro forma consolidated financial statements have been prepared giving effect to the Split-Off as if it occurred as of June 30, 2024 for the condensed pro forma consolidated balance sheet and January 1, 2023 for the condensed pro forma consolidated statements of operations. The unaudited condensed pro forma consolidated financial statements do not purport to represent what the Company’s financial position actually would have been had the Split-Off occurred on the dates indicated or to project the Company’s operating results for any future period.
Based on a quantitative analysis, the Split-Off of the Company’s interest in New Sirius is expected to represent a strategic shift that will have a major effect on the Company’s operations due to the relative materiality of New Sirius. Accordingly, the Company intends to present its divestiture of New Sirius as a discontinued operation.
The unaudited condensed pro forma consolidated financial statements should be read in conjunction with the publicly available information of Liberty Media, including the Form 10-K, as filed on February 28, 2024 with the Securities and Exchange Commission (the “SEC”) and the Form 10-Q, as filed on August 9, 2024 with the SEC, as well as the publicly available information of New Sirius, including the Form 10-Q as filed on August 16, 2024 with the SEC.
Liberty Media Corporation
Condensed Pro Forma Consolidated Balance Sheet
June 30, 2024 (unaudited)
| Liberty Media historical (1) | Less: Liberty Sirius XM Holdings historical (2) | Less: Reclassifications (3) | Liberty Media Pro Forma | |||||||||||||
| amounts in millions | ||||||||||||||||
| Assets | ||||||||||||||||
| Current assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 2,085 | 188 | — | 1,897 | |||||||||||
| Trade and other receivables, net | 826 | 644 | — | 182 | ||||||||||||
| Other current assets | 728 | 365 | (83 | ) | 446 | |||||||||||
| Total current assets | 3,639 | 1,197 | (83 | ) | 2,525 | |||||||||||
| Investments in affiliates, accounted for using the equity method | 1,983 | 1,601 | — | 382 | ||||||||||||
| Property and equipment, at cost | 4,290 | 5,335 | (2,036 | ) | 991 | |||||||||||
| Accumulated depreciation | (2,167 | ) | (3,436 | ) | 1,435 | (166 | ) | |||||||||
| 2,123 | 1,899 | (601 | ) | 825 | ||||||||||||
| Intangible assets not subject to amortization: | ||||||||||||||||
| Goodwill | 19,400 | 15,209 | — | 4,191 | ||||||||||||
| FCC licenses | 8,600 | 8,600 | — | — | ||||||||||||
| Other | 1,242 | 1,242 | — | — | ||||||||||||
| 29,242 | 25,051 | — | 4,191 | |||||||||||||
| Intangible assets subject to amortization, net | 3,828 | 400 | 601 | 2,827 | ||||||||||||
| Other assets | 1,817 | 673 | (161 | ) | 1,305 | |||||||||||
| Total assets | $ | 42,632 | 30,821 | (244 | ) | 12,055 | ||||||||||
| Liabilities and Equity | ||||||||||||||||
| Current liabilities: | ||||||||||||||||
| Accounts payable and accrued liabilities | $ | 1,768 | 1,298 | — | 470 | |||||||||||
| Current portion of debt | 685 | 586 | (5 | ) | 104 | |||||||||||
| Deferred revenue | 1,840 | 1,128 | — | 712 | ||||||||||||
| Other current liabilities | 179 | 257 | (78 | ) | — | |||||||||||
| Total current liabilities | 4,472 | 3,269 | (83 | ) | 1,286 | |||||||||||
| Long-term debt | 14,343 | 10,240 | (8 | ) | 4,111 | |||||||||||
| Deferred income tax liabilities | 2,210 | 2,371 | (161 | ) | — | |||||||||||
| Other liabilities | 1,400 | 1,219 | 8 | 173 | ||||||||||||
| Total liabilities | 22,425 | 17,099 | (244 | ) | 5,570 | |||||||||||
Liberty Media Corporation
Condensed Pro Forma Consolidated Balance Sheet
June 30, 2024 (unaudited)
(Continued)
| Liberty Media historical (1) | Less: Liberty Sirius XM Holdings historical (2) | Less: Reclassifications (3) | Liberty Media Pro Forma | |||||||||||||
| amounts in millions | ||||||||||||||||
| Stockholders' equity: | ||||||||||||||||
| Preferred stock | — | — | — | — | ||||||||||||
| Series A Liberty SiriusXM common stock | 1 | — | 1 | — | ||||||||||||
| Series A Liberty Formula One common stock | — | — | — | — | ||||||||||||
| Series A Liberty Live common stock | — | — | — | — | ||||||||||||
| Series B Liberty SiriusXM common stock | — | — | — | — | ||||||||||||
| Series B Liberty Formula One common stock | — | — | — | — | ||||||||||||
| Series B Liberty Live common stock | — | — | — | — | ||||||||||||
| Series C Liberty SiriusXM common stock | 2 | — | 2 | — | ||||||||||||
| Series C Liberty Formula One common stock | 2 | — | — | 2 | ||||||||||||
| Series C Liberty Live common stock | 1 | — | — | 1 | ||||||||||||
| Additional paid-in capital | 1,387 | (5,242 | ) | (3 | ) | 6,632 | ||||||||||
| Accumulated other comprehensive earnings (loss), net of taxes | (57 | ) | (19 | ) | — | (38 | ) | |||||||||
| Retained earnings | 15,724 | 15,859 | — | (135 | ) | |||||||||||
| Total stockholders' equity | 17,060 | 10,598 | — | 6,462 | ||||||||||||
| Noncontrolling interests in equity of subsidiaries | 3,147 | 3,124 | — | 23 | ||||||||||||
| Total equity | 20,207 | 13,722 | — | 6,485 | ||||||||||||
| Commitments and contingencies | ||||||||||||||||
| Total liabilities and equity | $ | 42,632 | 30,821 | (244 | ) | 12,055 | ||||||||||
Liberty Media Corporation
Condensed Pro Forma Consolidated Statement of Operations
For the six months ended June 30, 2024 (unaudited)
| Liberty Media historical (1) | Less: Liberty Sirius XM Holdings historical (2) | Less: Reclassifications (3) | Liberty Media Pro Forma | |||||||||||||
| amounts in millions | ||||||||||||||||
| Revenue: | ||||||||||||||||
| Sirius XM Holdings revenue | $ | 4,340 | 4,340 | — | — | |||||||||||
| Formula 1 revenue | 1,403 | — | — | 1,403 | ||||||||||||
| Other revenue | 172 | — | — | 172 | ||||||||||||
| Total revenue | 5,915 | 4,340 | — | 1,575 | ||||||||||||
| Operating costs and expenses, including stock-based compensation: | ||||||||||||||||
| Cost of Sirius XM Holdings services (exclusive of depreciation shown separately below): | ||||||||||||||||
| Revenue share and royalties | 1,411 | 1,411 | — | — | ||||||||||||
| Programming and content | 305 | 305 | — | — | ||||||||||||
| Customer service and billing | 224 | 224 | — | — | ||||||||||||
| Other | 120 | 120 | — | — | ||||||||||||
| Cost of Formula 1 revenue (exclusive of depreciation shown separately below) | 918 | — | — | 918 | ||||||||||||
| Other cost of sales | 120 | — | — | 120 | ||||||||||||
| Subscriber acquisition costs | 182 | 182 | — | — | ||||||||||||
| Other operating expense | 163 | 157 | — | 6 | ||||||||||||
| Selling, general and administrative | 919 | 697 | 36 | 186 | ||||||||||||
| Impairment, restructuring and acquisition costs | 37 | 53 | (36 | ) | 20 | |||||||||||
| Depreciation and amortization | 486 | 311 | — | 175 | ||||||||||||
| 4,885 | 3,460 | — | 1,425 | |||||||||||||
| Operating income (loss) | 1,030 | 880 | — | 150 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (377 | ) | (255 | ) | — | (122 | ) | |||||||||
| Share of earnings (losses) of affiliates, net | 65 | — | 6 | 59 | ||||||||||||
| Realized and unrealized gains (losses) on financial instruments, net | 166 | — | 100 | 66 | ||||||||||||
| Other, net | 55 | 114 | (106 | ) | 47 | |||||||||||
| (91 | ) | (141 | ) | — | 50 | |||||||||||
| Earnings (loss) before income taxes | 939 | 739 | — | 200 | ||||||||||||
| Income tax (expense) benefit | (187 | ) | (144 | ) | — | (43 | ) | |||||||||
| Net earnings (loss) | 752 | 595 | — | 157 | ||||||||||||
| Less net earnings (loss) attributable to the noncontrolling interests | 92 | 92 | — | — | ||||||||||||
| Net earnings (loss) attributable to Liberty stockholders | $ | 660 | 503 | — | 157 | |||||||||||
Liberty Media Corporation
Condensed Pro Forma Consolidated Statement of Operations
For the six months ended June 30, 2024 (unaudited)
(continued)
| Liberty Media historical (1) | Less: Liberty Sirius XM Holdings historical (2) | Liberty Media Pro Forma | ||||||||||
| amounts in millions, except per share amounts | ||||||||||||
| Net earnings (loss) attributable to Liberty stockholders: | ||||||||||||
| Liberty SiriusXM common stock | $ | 498 | 503 | (5 | ) | |||||||
| Liberty Formula One common stock | $ | 101 | 101 | |||||||||
| Liberty Live common stock | $ | 61 | 61 | |||||||||
| Basic net earnings (loss) attributable to Liberty stockholders per common share: | ||||||||||||
| Series A, B and C Liberty SiriusXM common stock | $ | 1.52 | NA | |||||||||
| Series A, B and C Liberty Formula One common stock | $ | 0.43 | 0.43 | |||||||||
| Series A, B and C Liberty Live common stock | $ | 0.66 | 0.66 | |||||||||
| Diluted net earnings (loss) attributable to Liberty stockholders per common share: | ||||||||||||
| Series A, B and C Liberty SiriusXM common stock | $ | 1.13 | NA | |||||||||
| Series A, B and C Liberty Formula One common stock | $ | 0.42 | 0.42 | |||||||||
| Series A, B and C Liberty Live common stock | $ | 0.66 | 0.66 | |||||||||
| Basic Weighted Average Shares Outstanding: | ||||||||||||
| Liberty SiriusXM common stock | 327 | NA | ||||||||||
| Liberty Formula One common stock | 235 | 235 | ||||||||||
| Liberty Live common stock | 92 | 92 | ||||||||||
| Diluted Weighted Average Shares Outstanding: | ||||||||||||
| Liberty SiriusXM common stock | 370 | NA | ||||||||||
| Liberty Formula One common stock | 240 | 240 | ||||||||||
| Liberty Live common stock | 92 | 92 | ||||||||||
Liberty Media Corporation
Pro Forma Consolidated Statement of Operations
For the year ended December 31, 2023 (unaudited)
| Liberty Media historical (1) | Less: Liberty Sirius XM Holdings historical (2) | Less: Reclassifications (3) | Liberty Media Pro Forma | |||||||||||||
| amounts in millions | ||||||||||||||||
| Revenue: | ||||||||||||||||
| Sirius XM Holdings revenue | $ | 8,953 | 8,953 | — | — | |||||||||||
| Formula 1 revenue | 3,222 | — | — | 3,222 | ||||||||||||
| Other revenue | 350 | — | — | 350 | ||||||||||||
| Total revenue | 12,525 | 8,953 | — | 3,572 | ||||||||||||
| Operating costs and expenses, including stock-based compensation: | ||||||||||||||||
| Cost of Sirius XM Holdings services (exclusive of depreciation shown separately below): | ||||||||||||||||
| Revenue share and royalties | 2,895 | 2,895 | — | — | ||||||||||||
| Programming and content | 618 | 618 | — | — | ||||||||||||
| Customer service and billing | 476 | 476 | — | — | ||||||||||||
| Other | 220 | 220 | — | — | ||||||||||||
| Cost of Formula 1 revenue (exclusive of depreciation shown separately below) | 2,240 | — | — | 2,240 | ||||||||||||
| Subscriber acquisition costs | 359 | 359 | — | — | ||||||||||||
| Other operating expenses | 596 | 322 | — | 274 | ||||||||||||
| Selling, general and administrative | 1,930 | 1,539 | (5 | ) | 396 | |||||||||||
| Depreciation and amortization | 1,030 | 624 | — | 406 | ||||||||||||
| Impairment, restructuring and acquisition costs, net of recoveries | 67 | 92 | (26 | ) | 1 | |||||||||||
| Litigation settlements, net of recoveries | 31 | — | 31 | — | ||||||||||||
| 10,462 | 7,145 | — | 3,317 | |||||||||||||
| Operating income (loss) | 2,063 | 1,808 | — | 255 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (782 | ) | (534 | ) | — | (248 | ) | |||||||||
| Share of earnings (losses) of affiliates, net | 138 | — | (19 | ) | 157 | |||||||||||
| Realized and unrealized gains (losses) on financial instruments, net | (323 | ) | — | (88 | ) | (235 | ) | |||||||||
| Gains (losses) on dilution of investment in affiliate | (4 | ) | — | — | (4 | ) | ||||||||||
| Other, net | 93 | (64 | ) | 107 | 50 | |||||||||||
| (878 | ) | (598 | ) | — | (280 | ) | ||||||||||
| Earnings (loss) before income taxes | 1,185 | 1,210 | — | (25 | ) | |||||||||||
| Income tax (expense) benefit | (223 | ) | (222 | ) | — | (1 | ) | |||||||||
| Net earnings (loss) | 962 | 988 | — | (26 | ) | |||||||||||
| Less net earnings (loss) attributable to the noncontrolling interests | 201 | 202 | — | (1 | ) | |||||||||||
| Net earnings (loss) attributable to Liberty stockholders | $ | 761 | 786 | — | (25 | ) | ||||||||||
Liberty Media Corporation
Pro Forma Consolidated Statement of Operations
For the year ended December 31, 2023 (unaudited)
(continued)
| Liberty Media historical (1) | Less: Liberty Sirius XM Holdings historical (2) | Liberty Media Pro Forma | ||||||||||
| amounts in millions, except per share amounts | ||||||||||||
| Net earnings (loss) attributable to Liberty stockholders: | ||||||||||||
| Liberty SiriusXM common stock (4) | $ | 829 | 786 | 43 | ||||||||
| Liberty Formula One common stock | $ | 185 | 185 | |||||||||
| Liberty Live common stock | $ | (142 | ) | (142 | ) | |||||||
| Liberty Braves common stock | $ | (111 | ) | (111 | ) | |||||||
| Basic net earnings (loss) attributable to Liberty stockholders per common share: | ||||||||||||
| Series A, B and C Liberty SiriusXM common stock | $ | 2.54 | NA | |||||||||
| Series A, B and C Liberty Formula One common stock | $ | 0.79 | 0.79 | |||||||||
| Series A, B and C Liberty Live common stock | $ | (1.54 | ) | (1.54 | ) | |||||||
| Series A, B and C Liberty Braves common stock | $ | (2.09 | ) | (2.09 | ) | |||||||
| Diluted net earnings (loss) attributable to Liberty stockholders per common share: | ||||||||||||
| Series A, B and C Liberty SiriusXM common stock | $ | 2.42 | NA | |||||||||
| Series A, B and C Liberty Formula One common stock | $ | 0.62 | 0.62 | |||||||||
| Series A, B and C Liberty Live common stock | $ | (1.54 | ) | (1.54 | ) | |||||||
| Series A, B and C Liberty Braves common stock | $ | (2.09 | ) | (2.09 | ) | |||||||
| Basic Weighted Average Shares Outstanding: | ||||||||||||
| Liberty SiriusXM common stock | 327 | NA | ||||||||||
| Liberty Formula One common stock | 234 | 234 | ||||||||||
| Liberty Live common stock | 92 | 92 | ||||||||||
| Liberty Braves common stock | 53 | 53 | ||||||||||
| Diluted Weighted Average Shares Outstanding: | ||||||||||||
| Liberty SiriusXM common stock | 343 | NA | ||||||||||
| Liberty Formula One common stock | 240 | 240 | ||||||||||
| Liberty Live common stock | 92 | 92 | ||||||||||
| Liberty Braves common stock | 54 | 54 | ||||||||||
| (1) | Represents the historical financial position and results of operations of Liberty Media. Such amounts were derived from the historical consolidated financial statements of Liberty Media as filed with the SEC on Form 10-K on February 28, 2024 and on Form 10-Q on August 9, 2024. | |
| (2) | Represents the historical financial position and results of operations of the carve-out entity. Amounts as of June 30, 2024 were derived from the financial statements of New Sirius as filed with the SEC on Form 10-Q on August 16, 2024. Amounts as of December 31, 2023 were derived from the historical combined financial statements of New Sirius, as filed with the SEC on Amendment No. 3 to Form S-4 on July 19, 2024. | |
| (3) | Reclassifications to conform to Liberty Media’s presentation. | |
| (4) | On August 3, 2023, the Company reclassified its then-outstanding shares of common stock into three new tracking stocks — Liberty SiriusXM common stock, Liberty Formula One common stock and Liberty Live common stock, and, in connection therewith, provided for the attribution of the businesses, assets and liabilities of the Company’s remaining tracking stock groups among its newly created Liberty SiriusXM Group, Formula One Group and Liberty Live Group (the “Reclassification”). As a result of the Reclassification, each then-outstanding share of Liberty SiriusXM common stock was reclassified into one share of the corresponding series of new Liberty SiriusXM common stock and 0.2500 of a share of the corresponding series of Liberty Live common stock and each outstanding share of Liberty Formula One common stock was reclassified into one share of the corresponding series of new Liberty Formula One common stock and 0.0428 of a share of the corresponding series of Liberty Live common stock. The Reclassification is reflected in these unaudited condensed pro forma consolidated financial statements on a prospective basis. |