Just last week it appeared like a bankruptcy was the inevitable for satellite provider Sirius XM, but how quickly things can change. Liberty Media Corporation has just stepped in and saved them with a loan for a whopping $530 million. The loan will be given in two parts with the first beginning immediately.
The first part consists of $280 million, of which $171.6 million will go to pay their debts. The second part will be $150 million with another $100 million going towards the outstanding loans from XM Satellite Radio.
All-in-all, this will give Liberty Media a total of 12.5 million shared of preferred stock in Sirius XM. Additionally, it is expected that both John Malone and Greg Maffei will be joining the Sirius XM Board of Directors.
Well, it looks like Sirius XM will live to fight another day, and their subscribers will be able to continue enjoying their (mostly) commercial free radio for a while longer.
Read [PR Newswire]
Wow, that's certainly a scary amount of money. I guess that's why I'm just a small business owner and not the CEO of a huge company.