WSJ: Liberty, Sirius XM Close To Deal
February 16, 2009 at 2:48 PM (PT)
The WALL STREET JOURNAL is reporting that LIBERTY MEDIA's "White Knight" deal to rescue SIRIUS XM RADIO INC. is close to fruition, with the paper citing "people familiar to the matter" as saying that JOHN MALONE's company, parent of DIRECTV, would invest "several hundred million dollars" in the satellite radio firm in two stages, eventually controlling about half the company.
The deal would help SIRIUS XM avoid having to file Chapter 11 bankruptcy by TOMORROW (2/17), when $175 million in debt must be paid, and would deal a blow to LIBERTY's arch rival CHARLIE ERGEN, whose ECHOSTAR bought up much of SIRIUS XM's debt. ERGEN had sought a deal that would give him control of the company for about $500 million in investments and restructuring of $400 million in debt.