Liberty Media Raises Stake in Sirius XM to 48%

John Malone's Liberty Media has inched closer to taking control of Sirius XM Radio, raising its stake in the satellite-radio operator to about 48%.

Liberty said it had bought about 90 million Sirius shares in recent days for roughly $2.50 each, or approximately $225 million in total. It also agreed to buy an additional 41 million shares through a forward agreement that expires on Oct. 11. Altogether, the transactions raise Liberty's effective stake to around 48% from 46.2%. Liberty originally acquired a 40% stake in Sirius in 2009, in the form of preferred shares, and earlier this year asked the Federal Communications Commission for permission to exercise effective control of the company. Sirius has opposed Liberty's application, arguing the company hadn't taken concrete steps to get control. The two sides are awaiting a response from the FCC. If Liberty's stake rises above 50%, it would have clear control of the company. That could open the way for Liberty to replace Sirius management and potentially pursue other options the media investment company has flagged, like spinning the Sirius stake off to Liberty shareholders.