Â鶹app

 

Exhibit 99.2

 

Â鶹app

Condensed Pro Forma Consolidated Financial Statements

(unaudited)

 

Introduction

 

On December 11, 2023, Â鶹app, a Delaware corporation (“Â鶹app Media” or the “Company”), entered into definitive agreements, which were amended on June 16, 2024, whereby, subject to the terms thereof, Â鶹app Sirius XM Holdings Inc., a Delaware corporation and a wholly owned subsidiary of Â鶹app Media (“New Sirius”), would split-off from Â鶹app 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, Â鶹app Media completed the Split-Off. The Split-Off was accomplished by Â鶹app Media redeeming each outstanding share of Â鶹app 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 Â鶹app 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 Â鶹app 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.

 

 

 

 

Â鶹app

Condensed Pro Forma Consolidated Balance Sheet

June 30, 2024 (unaudited)

 

   Â鶹app Media historical (1)   Less:
Â鶹app
Sirius XM
Holdings
historical (2)  		   Less: Reclassifications
(3)		   Â鶹app
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 

 

 

 

 

Â鶹app

Condensed Pro Forma Consolidated Balance Sheet

June 30, 2024 (unaudited)

(Continued)

 

   Â鶹app Media
historical (1)		   Less:
Â鶹app
Sirius XM
Holdings
historical (2)  		   Less:
Reclassifications
(3)		   Â鶹app
Media Pro
Forma		 
                 
   amounts in millions 
Stockholders' equity:                    
Preferred stock   —    —    —    — 
Series A Â鶹app SiriusXM common stock   1    —    1    — 
Series A Â鶹app Formula One common stock   —    —    —    — 
Series A Â鶹app Live common stock   —    —    —    — 
Series B Â鶹app SiriusXM common stock   —    —    —    — 
Series B Â鶹app Formula One common stock   —    —    —    — 
Series B Â鶹app Live common stock   —    —    —    — 
Series C Â鶹app SiriusXM common stock   2    —    2    — 
Series C Â鶹app Formula One common stock   2    —    —    2 
Series C Â鶹app 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 

 

 

 

 

Â鶹app

Condensed Pro Forma Consolidated Statement of Operations

For the six months ended June 30, 2024 (unaudited)

 

   Â鶹app Media
historical (1)		   Less: Â鶹app
Sirius XM
Holdings
historical (2)		   Less:
Reclassifications
(3)		   Â鶹app 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 Â鶹app stockholders  $660    503    —    157 

 

 

 

 

Â鶹app

Condensed Pro Forma Consolidated Statement of Operations

For the six months ended June 30, 2024 (unaudited)

(continued)

 

   Â鶹app Media
historical (1)		   Less: Â鶹app
Sirius XM
Holdings
historical (2)		   Â鶹app Media
Pro Forma		 
             
   amounts in millions, except per share amounts 
Net earnings (loss) attributable to Â鶹app stockholders:               
Â鶹app SiriusXM common stock  $498    503    (5)
Â鶹app Formula One common stock  $101         101 
Â鶹app Live common stock  $61         61 
                
Basic net earnings (loss) attributable to Â鶹app stockholders per common share:               
Series A, B and C Â鶹app SiriusXM common stock  $1.52         NA 
Series A, B and C Â鶹app Formula One common stock  $0.43         0.43 
Series A, B and C Â鶹app Live common stock  $0.66         0.66 
                
Diluted net earnings (loss) attributable to Â鶹app stockholders per common share:               
Series A, B and C Â鶹app SiriusXM common stock  $1.13         NA 
Series A, B and C Â鶹app Formula One common stock  $0.42         0.42 
Series A, B and C Â鶹app Live common stock  $0.66         0.66 
                
Basic Weighted Average Shares Outstanding:               
Â鶹app SiriusXM common stock   327         NA 
Â鶹app Formula One common stock   235         235 
Â鶹app Live common stock   92         92 
                
Diluted Weighted Average Shares Outstanding:               
Â鶹app SiriusXM common stock   370         NA 
Â鶹app Formula One common stock   240         240 
Â鶹app Live common stock   92         92 

 

 

 

 

Â鶹app

Pro Forma Consolidated Statement of Operations

For the year ended December 31, 2023 (unaudited)

 

   Â鶹app Media
historical (1)		   Less: Â鶹app
Sirius XM
Holdings
historical (2)		   Less:
Reclassifications
(3)		   Â鶹app 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 Â鶹app stockholders  $761    786    —    (25)

 

 

 

 

Â鶹app

Pro Forma Consolidated Statement of Operations

For the year ended December 31, 2023 (unaudited)

(continued)

 

   Â鶹app
Media
historical (1)		   Less: Â鶹app Sirius XM
Holdings historical (2)		   Â鶹app Media
Pro Forma		 
             
   amounts in millions, except per share amounts 
Net earnings (loss) attributable to Â鶹app stockholders:               
Â鶹app SiriusXM common stock (4)  $829    786    43 
Â鶹app Formula One common stock  $185         185 
Â鶹app Live common stock  $(142)        (142)
Â鶹app Braves common stock  $(111)        (111)
                
Basic net earnings (loss) attributable to Â鶹app stockholders per common share:               
Series A, B and C Â鶹app SiriusXM common stock  $2.54         NA 
Series A, B and C Â鶹app Formula One common stock  $0.79         0.79 
Series A, B and C Â鶹app Live common stock  $(1.54)        (1.54)
Series A, B and C Â鶹app Braves common stock  $(2.09)        (2.09)
                
Diluted net earnings (loss) attributable to Â鶹app stockholders per common share:               
Series A, B and C Â鶹app SiriusXM common stock  $2.42         NA 
Series A, B and C Â鶹app Formula One common stock  $0.62         0.62 
Series A, B and C Â鶹app Live common stock  $(1.54)        (1.54)
Series A, B and C Â鶹app Braves common stock  $(2.09)        (2.09)
                
Basic Weighted Average Shares Outstanding:               
Â鶹app SiriusXM common stock   327         NA 
Â鶹app Formula One common stock   234         234 
Â鶹app Live common stock   92         92 
Â鶹app Braves common stock   53         53 
                
Diluted Weighted Average Shares Outstanding:               
Â鶹app SiriusXM common stock   343         NA 
Â鶹app Formula One common stock   240         240 
Â鶹app Live common stock   92         92 
Â鶹app Braves common stock   54         54 

 

 

 

 

(1)Represents the historical financial position and results of operations of Â鶹app Media. Such amounts were derived from the historical consolidated financial statements of Â鶹app 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 Â鶹app Media’s presentation.
(4)On August 3, 2023, the Company reclassified its then-outstanding shares of common stock into three new tracking stocks — Â鶹app SiriusXM common stock, Â鶹app Formula One common stock and Â鶹app 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 Â鶹app SiriusXM Group, Formula One Group and Â鶹app Live Group (the “Reclassification”). As a result of the Reclassification, each then-outstanding share of Â鶹app SiriusXM common stock was reclassified into one share of the corresponding series of new Â鶹app SiriusXM common stock and 0.2500 of a share of the corresponding series of Â鶹app Live common stock and each outstanding share of Â鶹app Formula One common stock was reclassified into one share of the corresponding series of new Â鶹app Formula One common stock and 0.0428 of a share of the corresponding series of Â鶹app Live common stock. The Reclassification is reflected in these unaudited condensed pro forma consolidated financial statements on a prospective basis.