This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sirius XM Won't Join With DirecTV: Liberty

Liberty Media said it has no plans to combine the satellite operations of DirecTV (DTV - Get Report) with Sirius XM (SIRI - Get Report).

The news came during Liberty's fourth-quarter earnings conference call, where CEO Greg Maffei said that while bundling the services of DirecTV and Sirius XM may be an "opportunity down the road," the company is not planning to combine the operations together.

Liberty Media controls DirecTV, the nation's leading satellite-TV operator and rival of Dish Network (DISH - Get Report).

Just over a week ago, Liberty helped save Sirius XM from a potential bankruptcy filing with a $530 million loan infusion giving billionaire John Malone's company a 40% stake in the satellite radio giant. EchoStar (SATS - Get Report) had also reportedly been trying to gain control of Sirius XM, going as far as to accumulate a large amount of Sirius XM's debt.

EchoStar, which sells set-top boxes and was the former parent of Dish Network, is controlled by Charles Ergen. Ergen had offered to restructure Sirius XM's debt and inject several hundred million dollars of capital into the company in return for control, according to several media reports.

Maffei added that Liberty's investment in Sirius XM was driven by the appeal of the satellite radio company's service and "the attractive terms of the securities."

With credit markets still tight, Sirius agreed to pay a 15% interest rate on the Liberty Media loans in order to stave off Ergen and EchoStar's overtures. In exchange for the loan, Sirius will issue 12.5 million shares of preferred stock that will convert to a 40% stake in the company's common stock.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DTV $93.55 1.48%
LINTA $28.18 0.75%
DISH $59.62 0.00%
SIRI $3.83 0.00%
SATS $44.59 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs