N.Y. Times: DirecTV Owner in Talks with Sirius XM

Authored by Mark Hefflinger on February 12, 2009 - 8:47am.

Washington - Just five days before the company's $175 million debt payment comes due, Sirius XM (NASD: SIRI) has entered talks with Liberty Media (NASD: LCAPB) that the satellite radio provider hopes could keep it out of bankruptcy, The New York Times reported. The talks could set up a situation in which Liberty, the majority owner of DirecTV, wages battle with fellow satellite TV firm EchoStar (NASD: SATS), the owner of Dish Network, for control of Sirius XM.

Echostar in recent weeks has been accumulating the company's debt, including most of the $175 million due on Tuesday and part of another $400 million due in December.

The Times said that it's unclear how advanced the talks are between Liberty and Sirius XM, with some analysts suggesting that Liberty may be simply trying to drive up rival Echostar's price for the company.