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.
