Liberty Media Corp. will invest $530 million in Sirius XM Radio Inc., fending off a likely bankruptcy for the satellite radio company and blocking a bid by a rival, Dish Network Corp. CEO Charlie Ergen, to take control of Sirius.
Sirius had warned it could file for bankruptcy as early as Tuesday if it could not successfully negotiate with its debt holders. Sirius XM Radio has 20 million subscribers who use the service to listen to sports, music and talk, including Howard Stern’s show.
Advertisement - story continues below
Ergen holds much of the batch of debt that had come due Tuesday and had offered capital infusions and a restructuring of the loans in return for control of the company. Sirius Chief Executive Mel Karmazin rejected that offer and appears to have found an alternative in time to stave off a bankruptcy filing.