MUMBAI: After months of speculation, it appears Liberty Media has no plans to bail out bankrupt satellite radio operator Worldspace.
Liberty Satellite Radio has terminated transaction negotiations between the two companies, says a Reuters report.
Liberty Satellite Radio, a unit of media mogul John Malone’s Liberty Media Corp (LINTA.O), was widely expected to seek a strategic alliance between WorldSpace and Sirius XM Satellite Radio (SIRI.O), the New York-based company in which it owns a significant stake.
Through a subsidiary Liberty Media bought up the debt of Worldspace last year, leading to expectations that Malone would seek to combine Sirius and WorldSpace. Sirius has 18 million subscribers in North America while Worldspace satellite radio’s subscribers are mainly in Asia and Africa. The broadcaster’s India operations were abruptly terminated on 31 December 2009, after Liberty categorically ruled out taking over India operations of Worldspace.
Malone rescued Sirius from a possible bankruptcy filing last year with a $520 million loan. In return Liberty secured a 40 percent equity stake in the company.
Worldspace said in its statement that it now awaiting information from Liberty as to its expectations as Worldspace’s secured lender with respect to the handling of Liberty’s collateral.