In a quest that started four years ago, Liberty Media Corp. finally took control of Sirius XM Radio Inc. on Thursday after it bought additional 50 million common shares in the satellite radio company.
Liberty Media said it received approval from the Federal Communications Commission for the transfer of de jure control of Sirius XM to Liberty. Liberty now holds about 2 billion common shares and 1.29 billion convertible shares, giving Liberty Media more than 50% stake in Sirius.
Liberty said it expects to complete the transfer of control of Sirius XM within 60 days.
Sirius, based in New York, provides radio programming in vehicles, online and through mobile applications. It has nearly 24 million subscribers and is the world’s largest radio broadcaster in terms of revenues.
Liberty, run by cable magnate John Malone, saved Sirius from near-bankruptcy in February 2009 by agreeing to invest up to $530 million, which allowed Sirius to meet its obligation. In exchange, Liberty Media got preferred stock that amounted to a 40% stake in Sirius.
The 2009 deal, according to reports, also provided for two board seats for Liberty Media, and provided cash for operations and development, with a maturity date of December 2012 for the loan. On March 6, the two companies approved the second part of the deal, with Sirius XM getting $250 million immediately and Liberty receiving 12.5 million shares of preferred stock convertible into a 40% ownership of Sirius XM common stock.
Meanwhile, Sirius has recovered from its tailspin and gained customers, adding 2 million net subscribers in 2012 with revenues of $3.7 billion. Last week, Sirius said it now has 23.9 million subscribers.
Buoyed by reports of rising revenues and increased subscriber base, Sirius shares rose 2 cents to $3.16 on Friday. Its shares have climbed roughly 60% since July.
With Liberty in control, many expect a new CEO to replace James Meyer, who was named interim CEO in December, replacing Mel Karmazin, who resigned last year.
