Shares of Sirius XM Radio rose 2 percent Thursday following news that its board has approved an additional $2 billion buyback.
The satellite radio company said it will fund the repurchases through available cash, future cash flow from operations and future borrowings. It may buy the stock on the open market or in privately negotiated transactions, including potential deals with Liberty Media and its affiliates. Liberty Media owns a majority stake in Sirius.
The company also will buy back $500 million in shares from Liberty Media and its affiliates. The stock is expected to be bought in three installments in November, January and April. Buying stock from Liberty Media will complete Sirius’ existing repurchase program and mark the first transactions under the new buyback.
When it completes the Liberty Media transactions Sirius will have repurchased about $2.1 billion of its stock.