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SUNDAY, NOVEMBER 22, 2009
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Sirius Seeks White Knight

Facing massive debt and under siege by a rival, company turns to Liberty Media for help

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(Newser) – With $175 million in debt due Tuesday and an unwanted takeover in the offing, Sirius XM Radio is hoping for help from Liberty Media, reports the Wall Street Journal. The satellite radio company is more than $3.25 billion in debt and nearly cashless, yet remains steadfast in its efforts to repel a takeover by EchoStar mogul Charles Ergen.

Talks between Liberty, which controls DirecTV, and Sirius are far from solid, and it’s unclear whether Liberty would be willing to invest in the company. Meanwhile Ergen, who controls DirecTV rival Dish Network, has offered to pony up $500 million and restructure some $375 million in debt. Sirius, home to Howard Stern and Martha Stewart, among others, has begun to prepare a bankruptcy filing.

XM Satellite Radio and Sirius Satellite Radio products are advertised side by side on the exterior windows in the Sherman Oaks section of Los Angeles.
XM Satellite Radio and Sirius Satellite Radio products are advertised side by side on the exterior windows in the Sherman Oaks section of Los Angeles.   (AP Photo/Damian Dovarganes, File)
Liberty Media chairman John Malone.
Liberty Media chairman John Malone.   (AP Photo/Rob Carr)
John C. Malone, chairman of the board of Liberty Media.
John C. Malone, chairman of the board of Liberty Media.   (AP Photo/David Zalubowski, file)
A Sirius satellite radio is displayed at a Best Buy store in San Francisco, Calif.
A Sirius satellite radio is displayed at a Best Buy store in San Francisco, Calif.   (Getty Images)
A sign for XM Satellite Radio hangs over its exhibit space at the New York International Auto Show in New York.
A sign for XM Satellite Radio hangs over its exhibit space at the New York International Auto Show in New York.   (AP Photo/Mark Lennihan, File)
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2 comments
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Newser001
Feb 12, 09 10:05 AM CST
I'm seriously confused... I thought they merged? They're one - how can you sell 1/2? Reply
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Mjoh3
Feb 14, 09 8:00 PM CST
Why doesn't howard buy it? Reply
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