Sirius XM (SIRI - Get Report) reported record first-quarter results on Tuesday but made no mention of returning cash to shareholders, as its battle with Liberty Media (LMCA) continues to heat up. The satellite radio company earned 2 cents a share on $805 million in revenue. Analysts polled by Thomson Reuters were looking for 2 cents a share on $803.83 million in revenue. Sirius also reiterated its 2012 revenue guidance on Tuesday, predicting sales of $3.3 billion. Analysts are looking for revenue of $3.359 billion. Despite being free-cash-flow positive, Sirius did not announce a dividend or buyback, even though some investors thought it might. Liberty Media already owns 40% of Sirius as a result of a $530 million loan it provided the satellite radio company in 2009, and has been looking for a way to gain majority control of Sirius, though it's barred from additional purchases. Sirius CEO Mel Karmazin spoke of returning cash but said the board of directors has not announced anything yet. "We believe a good use of our cash is to return capital to shareholders," he said on the conference call. "We've talked about acquisitions as something we would consider, but there's nothing we're seeing out there we feel anxious about acquiring." Shares of Sirius closed the week down 1.8% at $2.16.
Yahoo! (YHOO) made the news this week, as the company's battle with activist investor Dan Loeb escalated. Yahoo! sent a letter to shareholders on Wednesday urging them to support their board of directors amid an unfolding proxy fight between Yahoo! and its largest investor, hedge fund manager Loeb. "We are confident that when you assess our new board's qualifications against Third Point's slate, you will come to the same conclusion that we did -- that this is the right board with the right mix of skills and experience to lead the company forward to create value for shareholders," Yahoo! wrote in its letter. Just one day after that, Loeb and his hedge fund Third Point called for the resignation of CEO Scott Thompson, accusing the Yahoo! chief of lying on his resume. Thompson said he had a computer science degree from Stonehill College, but the college refuted that. Yahoo! called it an "inadvertent error," and is now looking further into the situation. Shares of Yahoo! closed the week down 2.4% at $15.15.