Northern, WI 1/20/2013 (usmarketbuzz) –Liberty Media Corp. (NASDAQ:LMCAD), which in 2012 announced that it would take over satellite-radio provider Sirius XM Radio Inc. (NASDAQ:SIRI), acquired 50 million shares of Sirius.
Liberty Media, which is controlled by billionaire John Malone, has now become a majority stakeholder in New York-based Sirius and holds about 1.99 billion common shares and approximately 1.29 billion convertible shares of Sirius. After adding the converted stock to the outstanding shares of Sirius, Liberty Media’s ownership in the company now counts about 50.5%.
Liberty Media is planning to take control of the board of Sirius so that the satellite-radio provider company can get a new chief executive officer to run the company. Earlier in December 2012, James Meyer was appointed interim CEO, succeeding Mel Karmazin. Karmazin had resigned in 2012. Liberty Media CEO Greg Maffei said in November 2012 that the company will also consider alternatives such as stock buybacks or a dividend so as to return capital to shareholders of Sirius.
This January, the U.S. Federal Communications Commission allowed the transfer of broadcast licenses to Liberty Media, paving way for the company to finalize its takeover of Sirius. According to Liberty Media, it would own in excess of 50% of Sirius’ outstanding shares within 60 days of the commission’s approval.
Improvement in auto sales in the U.S. helped Sirius shares jump almost 59% in 2012.
Shares of Liberty Media closed more or less unchanged at $110.55, while shares of Sirius were up 0.5% to close at $3.16