Liberty to boost stake in Sirius XM to 45 pct

May 8, 2012

(AP) -- Billionaire John Malone's Liberty Media Corp. said Tuesday that it will spend $650 million to increase its effective control of satellite radio company Sirius XM Radio Inc. to 45.2 percent.

The company made the announcement upon the release of its first-quarter earnings results.

Liberty CEO Gregory Maffei said Liberty had agreed to purchase 302 million shares of Sirius XM at $2.15 each from an unnamed financial institution. The deal is expected to close early in the third quarter.

The purchase will boost its stake from about 40 percent, which is based on the number of common shares it would own if it converted its preferred shares. Malone's Liberty saved Sirius XM from near-bankruptcy in February 2009 by agreeing to lend it up to $530 million in exchange for the preferred stock.

Maffei also said that Liberty is planning to re-file its petition with the to be awarded "de facto control" of Sirius within 30 days.

The FCC dismissed Liberty's application on Friday, saying its application was "defective" partly because it did not establish that it intends to take actions that would give it full control.

Maffei told analysts on a conference call that Liberty may make its intentions clearer.

"Among the options to consider are to be more explicit with the FCC about what actions we intend to take," he said.

A Sirius XM spokesman did not immediately respond to a request for comment.

Sirius shares fell 4 cents, or 1.6 percent, to $2.13 per share in late afternoon trading.

shares were up $1.89, or 2.3 percent, at $85.94.

Explore further: Liberty Media CEO says DirecTV sale 'possible'


Related Stories

DirecTV, Liberty Media detail spinoff plans

May 4, 2009

(AP) -- DirecTV Group Inc., the nation's largest satellite TV provider, said Monday it will be combined with the entertainment unit of Liberty Media Corp. and spun off into a separately traded company.

Sirius XM earns small profit in 4Q

February 25, 2010

(AP) -- Sirius XM Radio Inc. on Thursday posted a small profit for the fourth quarter as it added subscribers and cut costs.

Liberty Media gives up stake in Diller's IAC

December 2, 2010

(AP) -- Barry Diller and John Malone, two media moguls whose partnerships over the past 17 years have been rocky at times, are cutting more of their business ties as Malone's Liberty Media sheds its voting stake in Diller's ...

Recommended for you

Microsoft aims at Apple with high-end PCs, 3D software

October 26, 2016

Microsoft launched a new consumer offensive Wednesday, unveiling a high-end computer that challenges the Apple iMac along with an updated Windows operating system that showcases three-dimensional content and "mixed reality."

Making it easier to collaborate on code

October 26, 2016

Git is an open-source system with a polarizing reputation among programmers. It's a powerful tool to help developers track changes to code, but many view it as prohibitively difficult to use.

Dutch unveil giant vacuum to clean outside air

October 25, 2016

Dutch inventors Tuesday unveiled what they called the world's first giant outside air vacuum cleaner—a large purifying system intended to filter out toxic tiny particles from the atmosphere surrounding the machine.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.