Liberty Media will rescue Sirius XM


There will be no Chapter 11 filing. John Malone’s Liberty Media has agreed to loan a total of $530 million to Sirius XM. $250 million is being funded today (2/17), which will allow Sirius XM to repay the $171.6 million of bonds that come due today. Liberty Media will ultimately take a 40% equity stake in Sirius XM and have seats on the board. The deal with Malone, whose company controls DirecTV, thwarts a takeover bid by Charlie Ergen, CEO of EchoStar and Dish Network, although EchoStar will book a nice profit on the Sirius XM debt it bought at a discount.