Updated from 10:36 a.m. EST to provide analyst comments in the sixth paragraph.NEW YORK ( TheStreet) -- Despite announcing record revenue, Sirius XM ( SIRI) continues to hold onto its cash, potentially paving the way for a future battle with majority shareholder Liberty Media ( LMCA). 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.
Liberty may eventually increase its stake from 40% to 51% in a variety of ways, but they will be mindful of the economy, given Sirius' dependence on new car sales from Ford ( F), General Motors ( GM) and Chrysler. Harrigan believes that Liberty will get a majority stake in Sirius in the "next two years" but whether it's friendly control or not is a different story. Earlier this morning, Sirius generated record first-quarter revenue, pulling in $805 million in sales, and earning 2 cents a share. That's up from $724 million in the first-quarter of 2011, when it earned 1 cent a share. Analysts polled by Thomson Reuters were looking for $803.83 million in revenue and earnings of 2 cents a share. Sirius shares fell slightly in Tuesday trading, losing 2 cents, or 0.67%, to reach $2.24. Interested in more on Sirius? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. -- Written by Chris Ciaccia in New York >To follow the writer on Twitter, go to http://twitter.com/commodity_bull. >To submit a news tip, send an email to: email@example.com