By David Benoit <\/p>\n
John Malone and Liberty Media are mobilizing cash for the takeover attempt of the rest of Sirius XM Radio. <\/p>\n
The media giant is spinning out its Starz premium-cable channel as way to bring in cash for its satellite radio hopes. <\/p>\n
Libertys CEO Greg Maffei says the move will permit us to better pursue our strategic objectives, including creating two currencies that could be used for acquisitions; and create significant liquidity at Liberty Media, which preserves all our options with respect to SiriusXM and Live Nation. <\/p>\n
The mechanism will be a dividend of shares of the new company paid to holders of Liberty. Starz will hold $1.5 billion in debt and an undetermined amount of cash, as well as the assets of the cable network. <\/p>\n
It is the latest move by Liberty, controlled by the billionaire Malone, who has a history of maneuvering around his media assets and has been public in his quest to land the rest of Sirius he doesnt control. <\/p>\n
From Dow Jones colleagues William Launder and Saabira Chaudhuri: <\/p>\n
In the past few months, Sirius and Liberty have battled publicly over which company should control the satellite radio company. <\/p>\n
Liberty gave Sirius a lifeline in early 2009 with several hundred million dollars in loans; in exchange, Liberty got preferred shares equivalent to a 40% stake in the company. Liberty has since increased the stake to more than 46% and asked the Federal Communications Commission for permission to exercise effective control. Sirius has opposed the FCC application, arguing Liberty hasnt taken concrete steps to get control. <\/p>\n
The split will also set up Liberty to further pursue its ownership in concert-promotion giant Live Nation Entertainment Inc., in which it currently owns a 26% stake. <\/p>\n<\/p>\n
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Liberty Media Spinning Off Starz to Go After Satellites<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" By David Benoit John Malone and Liberty Media are mobilizing cash for the takeover attempt of the rest of Sirius XM Radio. The media giant is spinning out its Starz premium-cable channel as way to bring in cash for its satellite radio hopes Continue reading