Liberty Media Corp (LMCA), Sirius XM Holdings Inc (SIRI): A Few Big Deals Help Keep Investors Happy as Indexes Fall

Although we don’t believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes — just in case they’re material to our investing thesis.

The major indexes are all moving slightly lower this afternoon. As of 12:45 p.m. EDT, the Dow Jones Industrial Average (INDEXDJX:.DJI) is down 45 points, or 0.26%, while the S&P 500 is off by 0.3% and the Nadaq is lower by 0.5%.

Big news on the day is the U.S. Senate’s widely anticipated approval of Janet Yellen as the next Federal Reserve chair, along with some slightly disappointing data from the Institute of Supply Management.

Liberty Media Corp (NASDAQ:LMCA)Economists had expected a reading of 54.5 for the ISM nonmanufacturing PMI report for December, but the actual number was 53. While a figure above 50 still indicates expansion, the latest number doesn’t represent as much as most were looking for.

Just because the major indexes are falling doesn’t mean everyone is having a bad day. Shares of Sirius XM Holdings Inc (NASDAQ:SIRI) are higher by 7% after Liberty Media Corp (NASDAQ:LMCA) offered to buy the remaining shares of the satellite radio company that it already doesn’t own. The offer price was the equivalent of $3.68 per share, but current Sirius shareholders will get Liberty Media Corp (NASDAQ:LMCA) shares. Sirius public shareholders would then own roughly 39% of Liberty Media Corp (NASDAQ:LMCA)’s shares, because the company plans to perform a 2:1 split prior to the Sirius deal closing. Liberty Media Corp (NASDAQ:LMCA)’s Class A shares are lower by 2.7% at this time.

Another partnership making news this afternoon is the deal between Priceline.com Inc (NASDAQ:PCLN) and General Motors Company (NYSE:GM) Chevrolet. The deal would enable Chevrolet customers who have the OnStar service to access a customer service representative or, later in 2014, an app that can help with a Priceline.com Inc (NASDAQ:PCLN) booking on the go. Priceline.com Inc (NASDAQ:PCLN) says it is trying to capitalize on the fact that hotels are one of the most requested categories on the OnStar service by offering Chevrolet customers a better experience and cheaper hotel rooms than before. Shares of Priceline are down 0.1%, while General Motors Company (NYSE:GM) is up more than 1.4%.

Lastly, shares of Twitter Inc (NYSE:TWTR) are down more than 5% after Morgan Stanley downgraded the stock this morning. The previous equal-weight rating was cut to underweight, while the price target of $33 per share was maintained. The firm believes that the risk/reward profile of the stock is nowhere close to being attractive at this time. The analyst feels that there is no guarantee that the company will ever become successful as the advertising market becomes increasingly crowded every day. Additionally, as it sits today, the stock has priced in a tripling of the company’s socially enabled advertising market within the next three years, a goal that is going to be difficult to reach.

The article A Few Big Deals Help Keep Investors Happy as Indexes Fall originally appeared on Fool.com and is written by Matt Thalman.

Fool contributor Matt Thalman owns shares of Priceline.com and Sirius XM Radio. Check back Monday through Friday as Matt explains what caused the Dow’s winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter @mthalman5513The Motley Fool recommends General Motors, Priceline.com, and Twitter. The Motley Fool owns shares of Liberty Media., Priceline.com, and Sirius XM Radio.

Copyright © 1995 – 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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