NEW YORK — John Malone's Liberty Media Corp. will lend $530 million to Sirius XM Radio Inc. in exchange for a 40 percent equity stake, saving the satellite radio provider from possible bankruptcy, Reuters reported last week.
The deal also helps Sirius CEO Mel Karmazin fend off a potential takeover bid by Charles Ergen's EchoStar Corp., which has purchased hundreds of millions of dollars of Sirius debt. That debt totals $3.25 billion.
Sirius XM generates about 75 percent of its subscriptions from radios installed in cars and trucks. The company's goal is to have its radios installed in 50 percent of the light vehicles sold in the United States this year.