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Sirius XM won’t be filing for bankruptcy after all.
Liberty Media has just invested $530 million into Sirius XM Radio, thereby preventing the satellite radio giant from having to file for bankruptcy.
Liberty Media will initially grant a $280 million loan to Sirius XM. Nearly two-thirds of this investment will be utilized to pay off a debt that Sirius had coming due this week. The rest will come in the form of a 2nd round, intended to pay remaining debts and avoid a possible takeover by Dish Network.
Liberty Media will also receive 12.5 million shares of preferred Sirius XM stock in exchange for its investment, thus giving the company a 40 percent ownership stake. Its president/CEO is also expected to join Sirius’s board of directors.
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