After last week saw waves of press centring around the possible bankruptcy of Sirius XM Radio, a deal between the struggling satellite giant and Liberty Media began to surface. Now the two corporations have reached an agreement that will see Liberty gaining an equity stake in return for bailing Sirius out of its financial predicament.

Liberty Media has agreed to invest an aggregate amount of $530 million toward Sirius XM in exchange for the future return of the funds and 40 percent of SIRI common stock.

Industry observers continue to be impressed by the ingenuity and good fortune of Sirius XM CEO, Mel Karmazin, and, as evidenced here, it is certainly warranted.

[Via Orbitcast]