If you woke up today and noticed Sirius XM was sporting a new price tag, you weren’t imagining things. The satellite radio giant just hit the Nasdaq in style after finally merging with Liberty Sirius XM Holdings—like when your broke friend marries into a rich family and suddenly starts wearing designer suits all the time. 

And to top it all off, they threw in a 1-for-10 reverse stock split—because nothing says “exclusive” like reducing the number of shares and making them pricier.

So, here’s the lowdown: Late Monday, Sirius XM sealed the deal with Liberty Sirius XM Holdings, a tracking stock that held 83% of Sirius XM shares. But now, with the merger wrapped up and a reverse split to boot (one share for every 10), Sirius has a "simplified capital structure." Slick, right? Well, hold that thought.

Sirius stock has taken quite a beating this year—down a 50% in 2024 so far, and to top it off, the stock’s down more than 10% since September began. But hey, here comes a silver lining wrapped in a Cadillac driven by Warren Buffett himself. That’s right—Berkshire Hathaway, aka the Oracle of Omaha’s kingdom, is now the largest shareholder with an estimated 25% stake in Sirius XM.

Now, if you’re wondering what Grandpa Buffett is up to amidst his ongoing Bank of America selling spree (seriously, he just sold another $228 million of BAC shares), this could be your answer. Buffett’s no stranger to Sirius XM, and rumor has it, he’s a fan of their Siriusly Sinatra station (true story, he loves crooning to some Frank in his Caddy).

But enough about Buffett’s music preferences—let’s talk numbers. Sirius XM did manage to pop 2.6% on its big debut, closing at $27.38. Sure, it hit a low of $24.43 earlier in the session, but at least it bounced back. The real shock? The company updated its 2024 guidance, and while revenue ($8.75 billion) and EBITDA ($2.7 billion) are holding steady, they revised their free cash flow estimate down by $200 million to $1 billion. 

And if Dave Ramsey got wind of their financials, especially that $10 billion in debt, he’d probably have a full-blown heart attack. You can practically hear him now: “Sell your fancy radio, get rid of your car, and start living on rice and beans until that mountain of debt is gone!”

So, is Sirius XM stock a screaming buy now? Well, with a market cap just under $10 billion and a 4.3% dividend yield, it’s definitely catching some attention. Toss in a $1.2 billion share repurchase plan, and you’ve got a decent case. The challenge? They’ve still got $10 billion in debt hanging over their heads, and their subscriber count is down 400,000 in the first half of 2024 alone. But hey, with Buffett’s backing and a cleaner structure post-merger, maybe Sirius XM’s best days are still ahead. Just don’t expect a miracle overnight.

P.S. While everyone’s focused on Buffett’s big bet on Sirius XM after the merger…

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Stock.News has positions in Sirius XM.