LOS ANGELES —
John Malone’s Liberty Media on Tuesday said it will spend $650 million to increase its effective control of satellite-radio company Sirius XM Radio to 45.2 percent.
The company made the announcement upon the release of its first-quarter earnings results.
Liberty chief executive Gregory Maffei said it had agreed to purchase 302 million shares of Sirius XM at $2.15 each from an unnamed financial institution. The deal is expected to close early in the third quarter.
The purchase will boost its stake from about 40 percent, which is based on the number of common shares it would own if it converted its preferred shares.
Malone’s Liberty saved Sirius XM from near-bankruptcy in February 2009 by agreeing to lend it up to $530 million in exchange for the preferred stock.
Maffei also said Liberty is planning to refile its petition with the Federal Communications Commission to be awarded “de facto control” of Sirius within 30 days.
The FCC dismissed Liberty’s application Friday, saying its application was “defective” partly because it did not establish that it intends to take actions that would give it full control.
Maffei told analysts in a conference call that Liberty may make its intentions clearer.
“Among the options to consider are to be more explicit with the FCC about what actions we intend to take,” he said.
A Sirius XM spokesman did not immediately respond to a request for comment.
