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Liberty Media Invests $530M in Sirius XM
Embattled satellite radio operator can pay off debts and avoid bankruptcy.
It appears that Sirius XM Radio won't have to file for bankruptcy thanks to a $530 million investment by Liberty Media Corp., according to the Wall Street Journal.
The satellite radio giant had hinted at possibly filing for Chapter 11 as soon as today. Speculation was that Charles Ergen, owner of Dish Network and EchoStar who recently bought up much of Sirius' debt, might move to acquire the company.
Instead, it's Liberty, a Colorado-based competitor of Ergen's companies, that comes to Sirius XM's rescue. The $530 million investment includes $250 million immediately in exchange for stock and seats on the board of the embattled satellite radio operator, according to WSJ.
It's good news for well-paid satellite stars like Howard Stern and Martha Stewart. There was some speculation that, under bankruptcy, Sirius XM would be forced to terminate some of its large contracts.
It's also good news for integrators since their clients' satellite radio service isn't likely to be interrupted. The bankruptcy was unlikely to have any ramifications for integrators who acted as resellers of satellite radio service or for those who installed satellite radio tuners.
Sirius XM has about $3.25 billion in debt, $175 million of which is owed at the end of February.
The satellite radio giant had hinted at possibly filing for Chapter 11 as soon as today. Speculation was that Charles Ergen, owner of Dish Network and EchoStar who recently bought up much of Sirius' debt, might move to acquire the company.
Instead, it's Liberty, a Colorado-based competitor of Ergen's companies, that comes to Sirius XM's rescue. The $530 million investment includes $250 million immediately in exchange for stock and seats on the board of the embattled satellite radio operator, according to WSJ.
It's good news for well-paid satellite stars like Howard Stern and Martha Stewart. There was some speculation that, under bankruptcy, Sirius XM would be forced to terminate some of its large contracts.
It's also good news for integrators since their clients' satellite radio service isn't likely to be interrupted. The bankruptcy was unlikely to have any ramifications for integrators who acted as resellers of satellite radio service or for those who installed satellite radio tuners.
Sirius XM has about $3.25 billion in debt, $175 million of which is owed at the end of February.
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About the Author
Tom LeBlanc, Senior Writer/Technology Editor, CE Pro
Tom has been covering consumer electronics for six years. Before that, he wrote for the sports department of the Boston Herald. Migrating to magazines, he was a staff editor for a golf publication and an outdoor sports publication. Now, as senior writer/technology editor of CE Pro magazine since 2003, he dabbles in all departments and offers expertise in marketing.
1 Comments
Page 1 of 1 comment pages
Probably Howard Stern will gain the exposure from the early development or the transistion from each media. I can see how they would invest in the later extension beyond what they have held in the benefactor in either shape or form. I can see how the 6 foot 6 exposure to the southern cardial could be booked over the limit. Once or twice is enough for me though.