Liberty Media (LMCA +1.9%) trades higher as it plays a waiting game with the FCC to see if can land "de facto" control of Sirius XM Radio (SIRI +0.6%). Despite all the hyperbole from Mel Karmazin about working for a boss again, Wunderlich Securities bets he stays on board if Liberty gets the green light.
Liberty Media (LMCA) takes the final step, and files an Application for Consent to Transfer of De Jure Control with the FCC to take control of Sirius XM (SIRI). In the Application, LMCA indicates that it intends to purchase sufficient additional shares of Sirius (SIRI) common stock such that, upon conversion of its Preferred Shares, it will own more than 50% of the total outstanding shares of the company.
Liberty Media (LMCA +0.5%), so tantalizing close to controlling Sirius XM Radio (SIRI +1.4%) that it can smell it, has analysts buzzing over the potential of mixing in Sirius to its existing stable of businesses. Though the company has stakes in Barnes & Noble, concert player Live Nation, and cable TV company Discover Communications - it's best known for structuring complicated tax-advantaged deals. What does LMCA have up its sleeve?
Liberty Media (LMCA) edges nearer to taking control of Sirius XM (SIRI) by increasing its stake to 48% from 46.2%. Last week, Liberty CEO Greg Maffei said he wants to recoup some the cash his firm has spent on buying Sirius shares, saying that the latter should borrow money to repurchase stock or pay dividends.
Is it possible that Sirius XM (SIRI +0.9%) is close to initiating a share buyback that would put Liberty Media (LMCA +0.1%) in control? That's the question posed by SA author Crunching Numbers after sizing up the $400M senior note offering the company floated last week. Liberty doesn't want over 80% of the Sirius because that would trigger a loss of tax credits, but a 50.01% stake would probably suit it just fine.
Liberty (LMCA) Chairman John Malone says Sirius (SIRI) needs to invest in developing the "next generation or two of (its) service," including the Internet version, and on globalizing. Malone also says he wants Sirius to use its substantial cash flow to return money to Liberty.
With all eyes on Sirius XM Radio, it's the other side of the potential merger that looks enticing to Canaccord Genuity as it rates Liberty Media (LMCA +0.3%) an enticing buying opportunity. Analyst Thomas Eagan crunches the numbers to find $7 to $12 upside following a LMCA-SIRI marriage.
Liberty Media (LMCA) +1.1% AH after stating a New York jury has awarded it €765M ($956M) in damages in a breach of contract and fraud suit against Vivendi (VIVHY.PK). The suit relates to a stock swap accompany Vivendi's 2001 purchase of USA Network from Liberty Media. (PR)
The closer Liberty Media (LMCA) gets to landing control of Sirius XM Radio (SIRI), the harder CEO Mel Karmazin seems to fight to maintain independence. Though on the surface it appears the exec's resistance is tied to his utter disdain for working for someone else, another variable in the equation is that a decent portion of his personal wealth is tied up in shares. So while the company rolls out Satellite Radio 2.0, Karmazin joins other investors in wondering if they will see SIRI $2.0 again?
While the newspaper industry has been decimated by the Internet, the TV industry has been mostly unscathed. But that may be changing, thinks Henry Blodget, after reviewing recent Nielsen data. Cable ratings have fallen sharply since July, and a Nielsen global survey found a 700 bps Y/Y drop in the number of respondents claiming to have watched TV at home in the last month. Other data suggests TV viewing is holding up well.
Like a cat playing with a still-breathing mouse, Liberty Media (LMCA -1.6%) CEO Greg Maffei tells CNBC that the company isn't in a rush to make a final decision on how big its stake in Sirius XM Radio (SIRI -1.0%) will ultimately grow to and that he would like to see Mel Karmazin stay on as CEO of Sirius.
Liberty Media (LMCA +1.1%) may be finally set to gain control of Sirius XM Radio (SIRI +0.8%) after filing a plan to convert preferred shares to common stock and asking the FCC to reconsider its early decision to refuse "de facto" control of the company. Lazard Capital Market's Barton Crockett sees Liberty succeeding in its initiative and finally ending the rocky tenure of CEO Mel Karmazin at the top.
Liberty Media (LMCA +0.3%) asks the FTC to reconsider its refusal to allow the company to take control of Sirius XM Radio (SIRI +1.2%). Liberty increased its holding in the satellite radio company to 46.2% from 40% earlier this month. (previous)
Liberty Media (LMCA) upped its holding in Live Nation Entertainment (LYV) to 48.7M shares, or more than 25% of the concert promotion giant's outstanding shares, from ~20%, according to an SEC filing. Liberty has received regulatory clearance to own as much as 35% of LYV, whose shares are +4% premarket.