breaking news this morning, SIRIUS XM Radio (NASDAQ: SIRI) and Liberty Media Corp. (NASDAQ: LMDIA) have reached a deal that will save the satellite radio company (for now) from the brink of bankruptcy.In pre-market trading, SIRI shares have jumped more than 80% to 19 cents per share. SIRI CEO Mel Karmazin, told reporters, "Liberty's investment is an important validation of what SIRIUS XM has already achieved and a vote of confidence in what we will achieve..."
In response, Liberty will assume two spots on the SIRIUS XM board and receive 12.5 million shares of preferred stock, convertible into 40% of common SIRI shares.Liberty will invest $530 million in SIRI, kicking off with a first phase: a senior secured loan worth $280 million, $250 million of which will be paid out today.
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