NEW YORK (TheStreet) -- For reasons I can't quite comprehend Sirius XM (SIRI) investors continue with their misguided optimism over recent events with Liberty Media (LMCA). They seem to think Liberty's effort to take full control of Sirius is going to somehow manifest into a win-win situation where both Liberty and investors of Sirius walk away holding hands.I can't help but think how this is an example of the perverse investor characteristic that likes to make easy things difficult. Sirius XM investors need to understand that Liberty Media is not working for their best interest, nor should they. Last week, Liberty said it had entered into a forward-purchase contract giving it the right to increase its stake in Sirius XM to 45.2%. The contract allows Liberty to purchase 302 million shares of Sirius XM at a forward price of $2.15 per share or $650 million. Instead of looking at this news objectively, many were quick to apply lipstick to this disappointment by suggesting that Liberty had somehow established a floor for the stock at a price of $2.15.
Hope still remains that once Liberty takes over, Sirius' stock will then start appreciating higher thereby bringing prosperity for all interested. But evidence suggests that Liberty's chairman, John Malone cares very little about Sirius as a stock. Investors are too quick to forget that Liberty has already made more than its share of profits off of this investment during the course of the past three years. The fact is, not only has it gotten its money back ($530 million loaned to Sirius) but it was also awarded 40% of the company in the process. So to think that it cares about the stock going up at this point is beyond ridiculous as it has already gotten the cake. The rest (as they say) is just icing. And it understands that the icing does not have any current value beyond $2.50. Instead Liberty and Malone have shown they care more about the assets and controlling rights of Sirius -- including $8 in billion net operating losses or tax shelters against future profits. Remarkably, the current value of the NOLs matches that of Sirius' current market cap. So if you want more evidence of questionable value for a stock, I don't think there can be a better argument against a purchase. As far as Liberty is concerned, they still win if Sirius does not go up another penny and they will see to it that they acquire full controlling interest without giving current shareholders one more cent than they deserve. And I think that's the way it should be since, after all, they were the ones that took the majority of the risk by bailing Sirius out with $530 million to avoid bankruptcy.