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Tuesday February 17, 2009
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American media conglomerate Liberty Media Corp. today announced that it will invest $530 million into the nearly bankrupt Sirius XM Radio company. The first part of the loan will come in the form of a $280 million senior secured loan for Sirius, with another $150 million going toward its subsidiary, XM.
For its part, Liberty will receive 12.5 million shares of preferred stock. Shares in Sirius XM--which announced that it could file for bankruptcy as early as today--rose from $0.09 to $0.20.
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February 17, 2009 10:49 PM
Hmm. I'm curious what Liberty has to gain from this deal. Are they anticipating an uptick in the auto industry in the near future-part of the reason behind satellite radio's flagging sales?
Or maybe they're expecting a consumer rebound in the short-near term? Or maybe that's just a lot of valuable intellectual property to let go down the drain?