Liberty Media Unveils Plans for Sirius

Liberty Media unveiled a proposal to make satellite-radio provider Sirius XM a wholly owned subsidiary, a move that would give the media-investment company access to a new source of capital as it pursues a big cable merger.

The transaction would convert Sirius's common stock into new Liberty Series C nonvoting shares. Liberty currently owns about 52% of Sirius. Taking 100% ownership of the company would "eliminate ambiguity in the long-term relationship between Sirius and Liberty," Greg Maffei, Liberty Media's president and chief executive said during a conference call with analysts Friday. The deal would allow Sirius shareholders to convert from a noncontrolling stake in a subsidiary into a direct equity position in Liberty, he said.