Update: Sirius XM Saved – Stern Fans Rejoice

Randomness — By on February 17, 2009 2:21 pm

As reported last week, Sirius XM was in hot water and faced the very real possibility of filing for bankruptcy.  Thankfully, they reached a deal today with Liberty Media, who will be paying out loans of $530 million to keep Sirius XM’s head above water.  In exchange, Liberty Media will have 12.5 million preferred shares, equivalent to 40% of the satellite radio company’s common equity.  They’ll also be taking up the same percentage of boardroom seats over at Sirius.

Liberty Media owns QVC, Starz, and a large portion of DirecTV (which incidentally has a ton of channels ala Sirius XM).  While Sirius wasn’t going to be going away anytime soon anyways, their deal with Liberty does help ensure that they can continue paying the salaries of popular talking heads like Howard Stern and Martha Stewart.

[NYTimes]

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