US satellite radio firm Sirius XM which, as previously reported, was considering filing for Chapter 11 bankruptcy protection in a bid to fight off a hostile takeover by another satellite company called EchoStar, has done a deal with QVC owners Liberty Media that should save the day.
As expected, Liberty Media will provide cash for the struggling satellite radio network in return for a minority stake in it. The deal means Mel Karmazin, who was especially opposed to the EchoStar takeover proposal, will stay as CEO.
The deal should mean co-promotion between the Sirius XM satellite radio offer and Liberty's satellite TV network DirectTV, though the two will not be merged.