Liberty Media Tries New Move Against Sirius

John Malone took a new step in his quest for control of Sirius XM Radio. Malone's Liberty Media Corp. said it struck a deal to raise its effective stake in Sirius to 45.2% and said it would reapply for regulatory approval to take control of the satellite-radio operator.

The media investment company said it agreed to buy 302 million shares for $2.15 each—at a total cost of $650 million—and expects the transaction to close in the third quarter. Including preferred shares Liberty already owns in Sirius, which are convertible to 40% of Sirius's common shares, the purchase would raise Liberty's stake to 45.2%. The deal comes a few days after the Federal Communications Commission dismissed an application by Liberty for approval to take de facto control of Sirius, citing, among other factors, the fact that Liberty hadn't taken concrete steps to seek control. Liberty said it planned to file a motion with the FCC within 30 days for its application to be reconsidered. Liberty Chief Executive Greg Maffei said he thought the stock purchase and other actions "we might take…will have bearing on our application."