Liberty Media CEO Says SiriusXM Takeover Could Take 18 Months
October 11, 2012 at 3:43 AM (PT)
LIBERTY MEDIA CEO GREG MAFFEI "told investors WEDNESDAY (10/10) that any future transaction with satellite radio giant SIRIUSXM would depend on its ability to monetize high cost shares, a move that could take at least 18 months to complete," reports MULTICHANNEL.COM.
As of mid-SEPTEMBER (NET NEWS 9/18), LIBERTY MEDIA owns 49.5% of SIRIUSXM RADIO, based on a filing with the SEC. LIBERTY converted nearly half of its preferred shares in SIRIUSXM RADIO INC. to common stock. Following the conversion, LIBERTY owns about 32% of the common stock in SIRIUSXM. Accounting for the preferred shares that haven't been converted, LIBERTY's effective stake in SIRIUS is 49.5%, the filing said.
"We would want to get our capital out before we do a Reverse Morris Trust," MAFFEI said. "If it takes 18 months, that would be sort of a minimum."