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Liberty Media saves Sirius XM from Echostar

Sirius XM, the largest provider of satellite radio, has struggled mightily in the months since the company was created by the merger of Sirius and XM.  On the verge of bankruptcy, Sirius has been saved for the time being by Liberty Media, which has agreed to loan the company a large amount of money to prevent it from being taken over by Charles Ergen's EchoStar or forced to declare bankruptcy.

The deal loans Sirius XM $530M USD, enough to pay off its debts to EchoStar, and in exchange Liberty Media will have a 40 percent stake in the company via 12.5 million shares of preferred stock.  The move will dilute the stock of current shareholders, but given the fact that its low value was largely due to the uncertainty surrounding the company, this is welcome news to many.

Sirius XM will have Liberty Media's chief executive John Malone, who brokered the deal with Sirius XM chief Mel Karmazin, on its board of directors.  The company also expects to add Liberty Media's Greg Maffei to its board.

The loans issued to Sirius XM will come at a 15 percent interest rate.  The deal is a significant one as it means the nation's top satellite TV provider (DirecTV, a subsidiary of Liberty Media) and its top satellite radio provider, Sirius XM, will be closely tied. 

No word has been announced if the companies will plan joint packages or marketing, but given their new ties, such promotions seem likely.

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RE: Will Liberty Media fix the incompetence?
By cpeter38 on 2/17/2009 3:20:25 PM , Rating: 2
I cannot live with the annoying DJ's. JUST PLAY THE MUSIC!

We turn on the classical music to pacify our toddler. Unfortunately, the DJs announcement of the next song is typically 3 dBa greater than the music. Why does that matter? Our son wakes up or gets restless. To make matters worse, the same DJs love to hear themselves talk. It is not unusual for them to spend 15-30 seconds discussing their great knowledge of the composer or performer.

Sirius, here is some free (but very valuable advice):
Nobody wants to hear the DJs for more than 5 seconds between songs/music!!

Whatever they do say should be matched to the music (volume, tone, & attitude)!!

They have 2 months to fix it - I cannot see myself paying any additional money if I am just going to be continually annoyed!

By psychobriggsy on 2/17/2009 3:53:04 PM , Rating: 2
Naxos classical CDs are dirt cheap.

Screw the radio. Rip the classical onto your home server and install a cheap wireless music device in the nursery.

And yes, screw the subscription. I wouldn't pay to listen to DJs.

"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs

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