Liberty Media Filing Seeks Control Of SiriusXM

In arecent FCC filing from Liberty Media, the company revealed it is seeking "de facto control" of SiriusXM, despite not owning the majority of stock in the satcaster. Seeking Alpha reports that in the FCC application, which was filed on March 20, Liberty Media asks for consent of the transfer of control of SiriusXM's assets and of the company itself from its shareholders.

Siriusreplied ina letter to the FCC dated March 22, saying, "Sirius XM disagrees that the expiration of certain provisions in the 2009 investment agreement changes control of Sirius XM and intends to file a formal response seeking dismissal or denial of the applications."

Seeking Alpha interprets Liberty's application to be a potential "hostile takeover" of the satcaster, adding that Liberty may be interpreting a potential loophole in a 2009 agreement with SiriusXM to mean that when its agreement expired on March 6, it allowed for the transfer of the satcaster to Liberty. However, Seeking Alpha notes that the FCC would need to approve such a transfer, which "could take years to resolve." The move could also be interpreted as a play to affect the stock price for Sirius and allow Liberty to buy up more shares of the satcaster.

Liberty Media has owned approximately 40 percent of SiriusXM since infusing the company with cash in a 2009 agreement.

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Liberty Media Filing Seeks Control Of SiriusXM