by InvestorPlace Staff | May 9, 2012 10:31 am
John Malone, the chairman of Liberty Media (NASDAQ:LMCA), said he will spend $650 million to increase his stake in Sirius XM (NASDAQ:SIRI) from 40% to 45.2%. It’s a power play to get control of the company.
Malone has been involved with Sirius since he loaned the company $530 million in 2009, which staved off imminent bankruptcy. Since then, Liberty has made $6 billion on the deal.
In the latest transaction, Liberty has agreed to purchase 302 million shares of Sirius at $2.15 each. The buyer is an undisclosed institution, and the deal is expected to close in the third quarter.
Last week, the Federal Communications Commission rejected Liberty’s petition for control over Sirius. But with the move to buy more shares, the company plans to re-file within 30 days — and it should have a much better case this time around.
Tom Taulli, InvestorPlace.com
Source URL: http://investorplace.com/2012/05/liberty-media-wants-full-control-over-sirius/
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