Liberty Media in quest of Sirius XM takeover deal

Liberty Media in quest of Sirius XM takeover dealLiberty Media is trying to get through all of Sirius XM in a deal that would value the satellite radio service at nearly $23 billion.

On Friday the complex proposal announced would allow Liberty Media Corp. to grab full ownership of Sirius XM Holdings Inc. after it acquired a controlling interest in the company last year.

The media mogul wants Liberty to make Sirius XM Holdings, which it already controls through a 52 percent stake, a wholly owned subsidiary, only a year after it boosted its stake to a majority and ousted boss Mel Karmazin.

Liberty outlined a proposal on Friday for a $10 billion all-stock swap that gives shareholders in the satellite radio firm a 3 percent premium on Sirius' closing price of $3.57.

In a statement, Greg Maffei, Liberty CEO, said shareholders in both Liberty and Sirius will "enjoy enhanced liquidity as shareholders of a $27 billion market capitalization company."

Sirius has continued to add subscribers as the auto market has grown but it is being threatened by internet radio players such as Pandora.

Sirius has 26 million subscribers and an 8 percent share of the radio audience. The service costs $14.99 per month.

Liberty's stock plummeted as much as 3 percent in later hours trading, after closing regular trading at $145.33, up 0.6 percent.