Did Sirius XM Radio Inc. make a Faustian bargain when it decided to accept $530 million from Liberty Media Corp.to stave off bankruptcy in early 2009? <\/p>\n
The New York-based satellite radio companyfiled a petition late Friday afternoon with theFederal Communications Commission, urging that the agency deny a request by Liberty Media Corp. that soughtto transfer several of SiriusXM's operating licenses to Liberty's control. Liberty owns 40% of SiriusXM and occupies fiveof its 13board seats. <\/p>\n
Liberty's request, filedMarch 20,include SiriusXM'searth station licensesanditsterrestrial repeaterlicense. The FCC requires SiriusXM to have all three licenses to operate. <\/p>\n
But SiriusXM fought back, arguing in a 24-page petition that Liberty failed to get proper signatures from the companys board for its transfer request. <\/p>\n
This is the equivalent of trying to cash an unsigned check and explaining the lack of a signature by saying nothing more than the account holder refused to sign it, SiriusXM's attorneys wrote. <\/p>\n
Liberty Media's intent, and the intent ofChairman John Malone, is unclear.The company did not state a reason for seeking control of those licenses and messages to Liberty Media's spokeswoman were not immediately returned. <\/p>\n
At issue is whether Liberty's 40% stake in SiriusXM allows Malone to assume ownership of the satellite radio company, which last year earned a $427-million profit on more than $3 billion in revenue. <\/p>\n
What's clear is that SiriusXM's last-minute arrangement with Libertyaverted financial disaster, allowing the New York satellite radio company to make a $172-million payment on its high-interest loans justdays before it was due in February 2009. The transaction also gave Liberty Media fiveof 13 seats on the company's board. <\/p>\n
The deal also barred Liberty Media from trying to take over SiriusXM by acquiring 39.9% or more of SiriusXM's stock. That provision expired March 6. <\/p>\n<\/p>\n
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\nSiriusXM fights Liberty Media takeover move<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"