Major League Baseball Hits Sirius XM 34 comments
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In an interesting new development, the Major League Baseball channel has found a new home on the Sirius (SIRI) side of the satellite radio dial. Previously this programming was not available to Sirius subscribers because the contract prohibited it. In essence, Sirius XM had to sit down at the table and make an arrangement that would allow MLB to be inclusive in any Best Of programming packages.
The natural time for the negotiations was shortly after the merger was approved. This would have allowed the Sirius side of the subscriber pool to enjoy MLB. That never happened, which indicated that perhaps there was a gap between the folks at MLB and the folks at Sirius XM.
Okay, not a big deal right? Well, that depends on how deep you want to look, as well as how much you want to speculate. You see, there is a small issue of $120,000,000 sitting in escrow. This escrow was established between XM and MLB prior to the merger. The money is just sitting there, unused. This money would be very helpful to Sirius XM Radio right now.
So why would negotiations be happening months prior to Spring training? A logical answer is that there was more than just programming offers being discussed. Yes, this is speculation, but there exists a possibility that Sirius XM and MLB have come to an agreement that would at least make the cash flow of the deal more friendly, and could even free up at least some of the escrow money.
With major debt issues in 2009, Sirius XM Radio will be making efforts to gain a financial edge wherever they can. It could even mean discussions with the NFL to make their $45 million due this year something more friendly.
So, consumers can listen to some hot stove baseball chat, and investors can consider what other conversations the dealings with MLB entailed. Time will tell.
Disclosure: Long Sirius XM
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This article has 34 comments:
Major League Baseball is hugh for new and current Sirius subscribers. Many current listeners are waiting for the MBL package before they sign up for the "Best of XM" programing.
"Take your time but hurry up"!
In a world of negatives on this situation, this is a step in the right direction. SIRI has to do all of this and more to get in line with their current situation.
but how the heck did you find this out? was this publicized, even if in their quarterly statement or something?
I am not a Baseball fan and am wondering if Baseball is a profitable venture for SIRI? I would ask the same of other contracts. It just seemed to me that, after the signing of Howard Stern, XM seemed to enter into a series of foolish deals to try to regain the momentum they were losing. I wonder if buying XM was like buying "a pig in a poke", so to speak.
this has to be a broker or market manager right? (since the commisions on some many little trades would eat up any profit)
Currently there have been 31 million shares traded today to produce a ,0004 change from fridays close.
Naby companies have made mony buying and selling their own stock. My question is why Sirius did not short it's own stock during all the turmoil. It was quite clear the price was going down. (I think qoogle made quite a bit in it's early days)
On Dec 15 02:03 PM bananaz wrote:
> Exactly what should SIRI use to buy back the shares? They have no
> spare cash.
15:45:38 $ .1434 100
15:45:38 $ .1436 100
15:45:38 $ .1436 175
15:45:38 $ .1437 100
15:45:31 $ .1434 100
The transactions to which you refer are partial orders. Largely from people who are buying or selling under 5K share orders. Don't forget under a buck, you can't set up market day orders, they have to be limit. If you're an experienced trader, you always use limit orders anyway no matter what the price is, but under a buck is always limit. And it depends on what the limit is, the spread is, and what other negotiations go down between MM's and brokers that determine how many shares get bought or sold at any given time (and at what exact price). While orders are being filled, prices and willingness change within the spread and if one MM is only interested in taking up to a certain limit, the order might have to go to another (or several) to finish being filled. So...what that means is a 5K or 2K share order can have several 100sh, 200sh, 500sh, trades before the full order is finally filled.
Good explanation and important to keep in mind that some accounts also don't accept any limit order that is more than two decimal places. So while the majority of the day you can watch on level II a stock trade in ten thousandths of a penny, your broker may only allow you to place an order for .14 or .15. In order to get a buy in at .1452 you have to put a limit buy order in at .15 and trust your broker to get the best price for your 2000 share order. Some at .1430, .1453, and so on until its filled. My E*trade retirement account allows me access to see level II but only lets me place two decimal place limit orders. My cash account with Ameritrade, allows me to put exact price bid and ask prices in to four decimal places. Big difference if your trading large amounts of shares, not so much for small orders. Just thought I'd butt in..... hope you don't mind.
Good point and part of the mix. I use Scottrade and I'm able to put in to the thousandths...which helps a little. But even then there's the extra place to haggle over...which can easily (and does for me) create plenty of partial orders. Considering when people only get to the hundreths, that leaves a lot of haggle room at these low prices (and sucks for the trader).
I found an interesting article while looking at another beaten stock CHTR (you think SIRI's got problems... -- they've got 20B in debt and are currently seeking to cut deals with current bondholders)...I think the more telling thing is they closed today @ .12... SIRI is .14...similar circumstances but I'd call CHTR way worse. I guess the Street is non-descretionary about debt...period.
Anyway, I saw this article by our favorite Bear WallSt 24/7 Doug M. This posted on Sat but never made it to SIRI's page. Wonder why? But here's what he has to say (more of the same).
www.247wallst.com/2008...
btw...'not at all' meaning of course I don't mind...
But when reading that 24/7 article notice how Doug now says SIRI has traded under .10. We all know that was a one trade spike (.08). But Doug exploits it as if they spent days or anything more than one trade below .10. What an ass.
For what I've been seeing it usually trades down between open and around 11 am and then hold your breath at the close if it crawled up at all, they've been bringing it back down. Good luck. BTW, that's strictly looking at the chart and there hasn't been a whole penny move, other than Friday's Senate news from Thursday night, and then it was back in this .14 - .15 range. Good luck!!
Yeah depending on where they stand on the business model, without the company defending the stock price and company publicly, the company is ripe for pick and choose reporting. Kind of tiresome and definitely frustrating.
If Mel does not fund this debt now it means he never had any plan to finance and stock holders were always the patsy.
Will Mel finnance now?
Not if he never planned too...
This is the telling and defining moment Mel never thought would come...
The key rate for Mel is 3moLibor. After Fed decision yesterday, today it's fallen to 1.578. Lowest I've ever seen it is 1.11 several years ago. I just heard someone say on CNBC today that they expect it now to crash below 1 sometime in January. This could be playing into Mel's hand. He's said he was looking at Libor plus 6 or 7. If it slips under 1, he could lock in a rate under 7%. But a point I've made many moons ago, their never gong to even go for 6 and change. To refi, they wouldn't do anything for less than 4.5 and that will be impossible...
So...bring on the shares my friend. Your point is correct. Given Mel's own math, refi was never on the table. The only refi they would do is if they got the same 2 or 3 they're getting from the bondholders (but at the expense of the common)...which ain't happenin' and never was going to. I will fall over sideways if he announces some sort of refi tomorrow or thereafter. I'm waiting for the announcement of phase two of the orginal deal. And that's to wipe out debt (and commoners) with shares. What else?
Banks have been told more bad is on the way. This is why the Banks are still "Hording" the money. I happen to know Citi was told to get out of China as part of the bailout. I can't say more...
Sirius is an FCC protected monopoly of SATRAD band space. In one form or another Sirius can not fail. It could go into an operational BK or be stolen private on the cheap. But someone will make millions.
This meeting and Mel’s action in the next 10 days with bank financing this low, will tell the true story.
Was it the plan to rape stock holders with shorts and double down dilution? We may never hear the answer but it will be obvious.
Mr. Mel, now the economy really sucks. It is telling on you... LOL
So, what you going to do Mel? Our Lawyers are getting restless....
However, what would be tomorrow’s value of Sirius if information was confirmed that:
“Mel turned down a very low rate, multi year, multi million dollar loan from an investment group”?
Who would pay more for that kind of information?
What are you going to do Mel? LOL…