Sirius XM Radio And Liberty Media: The Waiting Game Is Almost Over
By Crunching Numbers:In early 2009 Liberty Media (LMCA) bailed out SiriusXM Radio (SIRI) with two loans totaling more than half a billion dollars. Taking advantage of frozen credit markets, Liberty was also able to purchase preferred stock for $12,500 that was convertible into common shares representing 40% of Sirius. The complex agreements granted Liberty more rights than would typically accrue to a minority investor, and also carried Standstill Restrictions on how and when Liberty could increase its ownership. The last of the Standstill restrictions expired on March 6, 2012.Liberty Media certainly kept busy in anticipation of that date. In March the company filed a petition with the FCC seeking de facto control of the Sirius licenses. The petition was rejected last week, and based on information released by Liberty in its first quarter results press release and its recent SEC filings, the rejection was not unexpected. The FCC on May 4thComplete Story »
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