Liberty filed an application with the Federal Communication Commission to increase its 40 percent stake in Sirius XM, which would give the company and its head, John Malone, control over the nation’s only licensed satellite radio operator. Liberty Media helped rescue a struggling Sirius XM three years ago via a cash infusion.
Some speculate that Malone intends to spin the company off for a hefty profit. Shares of Sirius XM Radio climbed 4.5 percent on the rumor closing at $2.31 on Friday — the largest one-day gain since February.
Sirius XM has asked the FCC to dismiss the application and company head Mel Karmazin has reportedly made it clear that he has no desire to fill the number two spot should Liberty take full control. Malone has promised to abide by the existing agreement reached in 2009 until a decision is reached by the FCC.
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