After chasing Sirius XM Radio for months, John Malone’s Liberty Media appears poised to catch its target. The company is asking the FCC to approve its takeover. If the government goes along with the request, Liberty says within 60 days it will buy “sufficient shares” of Sirius XM stock and convert its preferred shares to “own more than 50%” of the total outstanding shares.
In a SEC filings, Sirius XM says it will “cooperate fully” as it reviews Liberty’s application. The march toward a majority stake has been slow but steady with Liberty disclosing last week it had bought additional stock bringing its holding up to 48%. If Liberty is successful, the takeover is certain to outrage shareholders who watched as the company goes to a new owner at mere face value of the stock instead of paying a premium to other stock owners.
In a call with analysts earlier this month Sirius XM CEO Mel Karmazin softened his stance on working for Malone. Karmazin, 68, said earlier remarks about being a “number two” have been taken out of context and he’d have “no issue” with running Sirius XM for Liberty. Even so, Karmazin also noted his contract expires at the end of the year, reports Inside Radio.