Liberty Media Keeps Sirius XM Out of Bankruptcy
Liberty Media (LCAPA) is investing $530 million in Sirius XM Radio (SIRI), effectively keeping the satellite radio company from having to file for bankruptcy. Liberty Media made the announcement today.
Liberty Media’s Sirius XM Investment
Liberty Media will initially provide a $280 million loan to Sirius XM. Nearly two-thirds of that cash will be used to pay off a debt which Sirius had due this week. The remaining $250 million will come in a second round intended to cover remaining debts and prevent a possible takeover by Dish Network.
Liberty Media will get 12.5 million shares of preferred Sirius XM stock in exchange for its investment, giving it a 40 percent ownership stake. Its president/CEO is also expected to join Sirius’s board of directors.
More About Liberty Media
Liberty Media is a media company based in Engelwood, Colorado. It is described as owning “interests in a broad range of electronic retailing, media, communications, and entertainment businesses.” Those businesses include Ask.com owner IAC/InterActiveCorp as well as QVC, Backcounty.com, Bodybuilding.com, Expedia, and a host of other properties.
