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Sirius XM Radio has reached a deal with Liberty Media under which the DirecTV owner will invest in the firm in exchange for a large stake.
According to a statement released by the companies, Liberty will invest $530 million, in the form of a loan, in exchange for an equity stake in the company.
The deal will allow Sirius to escape bankruptcy, which numerous media reports expected to happen Tuesday.
"We are pleased to have come to this agreement with Liberty Media, particularly in light of today’s challenging credit markets," Sirius XM’s CEO, Mel Karmazin, said as part of the announcement. "Liberty’s investment is an important validation of what SIRIUS XM has already achieved and a vote of confidence in what we will achieve."
"This agreement enables Sirius XM to continue to develop the opportunities first outlined in the merger of Sirius and XM. By strengthening our capital structure and enhancing our financial flexibility, this investment allows us to continue providing the great content and innovative programming our subscribers know and love."
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