Report: Sirius Talking To Liberty Media
February 11, 2009 at 8:54 PM (PT)
The NEW YORK TIMES' DEALBOOK blog is reporting that SIRIUS XM RADIO is in talks with LIBERTY MEDIA about a possible deal to head off Chapter 11 bankruptcy and a possible takeover by ECHOSTAR. LIBERTY, owner of DIRECTV, is headed by cable industry veteran JOHN MALONE and is said to be in preliminary talks with SIRIUS; the LOS ANGELES TIMES is reporting that the deal could involve LIBERTY/DIRECTV buying out shareholders in SIRIUS XM and repaying the radio company's debts, but that a Chapter 11 filing would favor ECHOSTAR as the ultimate victor because of its bond holdings in SIRIUS XM.
SIRIUS faces $175 million in maturing debt on TUESDAY (2/17) and was reported YESTERDAY to be working with advisors on Chapter 11 bankruptcy paperwork in anticipation of a filing.