Satellite radio provider Sirius XM Radio hopes investment from Liberty Media will enable it to avoid a takeover by media mogul Charles Ergen. The preliminary talks may spark a bidding war between Ergen and Liberty.
Sirius’s shares plummeted 51% in response to reports this week that the company is preparing for bankruptcy. Sirius has debts of almost USD1bn and is unable to pay a USD175m instalment due next week. The satellite radio provider’s market value is less than USD200m.
Talks between Sirius are advanced, but it is still uncertain how much Liberty is willing to invest and whether it would gain full control in any deal. Mr Ergen is attempting to use Sirius debt he bought recently to leverage a sale to his EchoStar satellite empire.
StrategyEye's related categories: Satellite Carriers and Operators, Satellite Broadcast, Broadcasters - Satellite TV, ISPs - Satellite, Broadcasters - Satellite Radio
StrategyEye's related companies: XM Satellite Radio, EchoStar Communications, DirecTV, Liberty Media, Sirius XM
