Is Liberty Media Plotting to Take Over Sirius?
In 2009, Sirius XM Radio (NASDAQ:SIRI) crashed, only avoiding bankruptcy when Liberty Media (NASDAQ:LMCA) stepped in. The deal landed Liberty with a 40 percent stake in the company. In what looks like an inevitable takeover, Liberty recently increased that stake to 49.7 percent.
Sirius CEO Mel Karmazin, whose contract expires at the end of the year, has a dubious future. Liberty Media CEO Greg Maffei has suggested that it may be time for Sirius management to get a shake-up. Maffei wants Sirius to buy back stock and offer dividends.
Liberty is up over 30 percent this year to date. Sirius, whose membership growth looks strong, is also up 30 percent. Whatever dance the two companies are involved in will take the stage at the Bank of America Merill Lynch Media, Communications, & Entertainment conference in Los Angeles on September 12 and 13, as both CEO’s are schedule to speak.
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