Sirius Plays Dangerous Game at Investors' Expense 184 comments
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The New York Times is reporting that Sirius XM (SIRI) is preparing to file bankruptcy under Chapter 11 and my initial reaction was one of absolute and total deflation and disbelief. I find it sickening that a company with such a growing stream of revenue could just decide to ignore its obligations and in one fell swoop destroy investors in its common stock and bonds as well. Even with sufficient cash on hand, the company, it would seem, would be willing to sell out its investors for the sake of getting a free ride on the backs of those who saved and invested in its future.
The New York Times article goes on to speculate that the filing itself may be nothing more than a ploy to force Echostar (SATS) CEO Charles Ergen into a potential partnership deal. I find it no less despicable that Sirius XM management would risk the savings of thousands of its investors, even if such considerations are in fact the company’s motives.
I have to concede, having followed Sirius since 2003, that the potential motive of forcing Mr. Ergen to make an offer seems reasonable. For as long as I can recall, Sirius has never leaked so much as a subscriber figure. They just do not offer any guidance in advance. The only exception I can recall was the merger rumor with XM, which I attributed to a leak on XM’s part to increase the pending offer.
In this case, Sirius provided the New York Times with a substantial news leak. In doing this, it has rendered its bonds including those acquired by Mr. Ergen, worthless. Mr. Ergen now stands to lose hundreds of millions of dollars if he does not act. Sirius XM is playing a dangerous game of chess with a grandmaster of the game, and doing so at the risk of its private investors.
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Long SiriusXM
can't be any more crazy of an idea than the BK rumors. Funny thing is between him and Mel, there is tons of money to inject.
nothing worth while relmar even left it in the comment box and didn't post it.
"i think it's because the whole thing needs new management and all of the owners suck
and should be in a cell next to Bernie Maddoff.
If someone doesn't relinquish this company to a worthwhile knowledgable businessman.
People should stop renewing all contracts for as long as it takes to force them out. I have no investment in this company except that my 1 year old van has a radio with a C.D. player which i have purchased four sets of C.D.'s and a 2 Mb apple thingamagiggie my grandson got me to download several hundred songs and programs on and patch into the system.So many of my friends have been buying this for so long and doing so instead of saving for their retirement each month. It reminds me of Bernie Ebbers of Worldcom.
Now do you really think without clear documentation that after all these years pockets haven't been lined and no real true effort made for the stockholders to know the true use of their investment money. Look it's not broadband internet wide band high defination bull crapola it's just a radio signal.I'm sorry so many have been suckered for so long with no real chance for true success. Nice idea for the Bernie Ebbers of this world remember rent excess space for nest to nothing from empty satellite transmission (unused signal capacity).
Cheap as hell but not off rate useage discount for the customers duh.
The original buyers that knew it was what it is and stopped buying with prudence and expectation of the outcome. good for them they will come out o.k.if they can find buyers willing to wait and hope for a credible buyer and manager. The rest i feel bad for them the weight of that pryamid What i felt was a jab in the back of the stock holders is the exchange saying they were going to do a delisting threatening people.
Gee did they do that to Citi Bank?
I mean just look at the price what is it they have gold tiolet seats or something! I know it's a different exchange but after all is Bernie Madoff near this deal?
America love it or pish on it at least then maybe the grass may grow.
dealbook.blogs.nytimes...
Suck on that bashers!!
On Feb 11 07:04 PM FoolNHisMoney wrote:
> Relmor, I heard the segment where Bob Kraft dropped in on Howard's
> show unexpectedy today and was thinking the same thing. Bob Kraft
> "touring the studios with Mel" in the midst of this whole takeover
> fiasco . . . hmmm, coincidence? I hope not, as Kraft is a huge fan
> (both Sirius and Stern) and could be Mel's (and our) knight in shining
> armor!
Guess who the majority share holder is at Liberty,,,,,,Mr DTV himself John Malone! Now things get interesting.....and I bet there are some pissed off folks regurgitating their dinner after taking huge losses today!
On Feb 11 08:07 PM asm61064 wrote:
> Tell you what folks...Liberty has some nice financials!
One would think! And I would also surmise that there are even bigger ego's at play here.Malone on the DTV side vs Ergen and Dish..with Mel sitting pretty...sorry bashers.....looks like he is once again smarter than you!
Wouldn't it be wonderful if we could somehow claw back to 1.00/sh, I'd settle for $.20 right now though
On Feb 11 08:28 PM asm61064 wrote:
> seri,
>
> One would think! And I would also surmise that there are even bigger
> ego's at play here.Malone on the DTV side vs Ergen and Dish..with
> Mel sitting pretty...sorry bashers.....looks like he is once again
> smarter than you!
Stern himself did not mention his contract on his show.
"It's a very unusual business," he said of satellite radio. "It has something like 20 million people listening to it. There's a tremendous business ... Don't get fooled by what you read." (Reporting by Sue Zeidler; Editing by Gary Hill)
To what extent has Liberty been buying shares or do you know if they are buying debt?
I missed the Howard sgment with Bob Kraft. Is it true he was touring Sirius with Mel?
I believe you were at your best today, someday if you are in Brooklyn, I'd love to buy you dinner.
Let me guess.... it doesn't fit your self-educated calculations. Hard to explain how this love-stock could treat you so bad, isn't it? Just can't imagine Mel & Co. make you look like complete hot-air buffoons. Shocking. And all the cheerleaders who rooted you on..... how could your limited wisdom let them down like that? Kind of hard to imagine which is the bigger fool now. Is it the leader..... or the follower?
Perhaps you all need a group hug..... to tell each other every thing is going to be all right and Mel is going to coming riding in and save you all from humiliation. Try to razzle dazzle each other by throwing a bunch of fancy Wall Street words and acronyms around.... and then make claims how SIRI is testing a new low, so other new readers think you really know what you are talking about, when really you & I know better, and know you don't have a clue. Good luck with running your mouth much more than your ears.
Maybe next time those fakes won't be so eager to criticize others. Maybe now they will understand that Mel doesn't give the first flying flip about them and all their flag waving.
Please, and you know which ones I am talking to, please explain how this happened to such market scholars as yourself?
OK. Let's see. First I'll get the somber news out first just for clarification to another post. Someone said that no BK because the company has not said anything in the news. IF (big if) BK comes, all we will get is a headline: SIRIXM Files for Bankruptcy. That's it. We'll get no apology, gee i'm sorry all you shareholders, here's why we did it, no explanation. Just details. I just want to make that clear. And that's all Ihave to say about BK from here on in. CNBC's spin this morning was from new WSJ. Sick of spin. Let's stick to the facts. I was thinking today about something. Mel has ONLY said all the way through that "We're confident we'll be able to work something out." Never once did he say, "or I guess we'll just file for BK."
Satrad Is Dead....
You my friend are a moron. Telling people to sell @ .05? WTF Bro? Shareholders will be wiped out? Shareholders are wiped out right now you idiot. You obviously have an agenda and are exposed. Sell, sell, sell? No, no, no. That's not how you play the game stupid. You show again your lack of expertise. But you actually said one intelligent thing without realizing it. You make a good point about who was behind the BK info on SIRI yesterday in the Times. Ergen. Which leads also to who possibly leaked the first story to WSJ that jacked the stock. SIRI. Why? Hypothesis: First SIR leaks the Ergen news to jack the stock so maybe they can use more shares to pay down debt. Charlie's move to block: start second rumor that Ergen is actually trying to force BK, not buy company. Stock retreats but not enough. Egan in negotitations says accept my offer and give me some control of company or die. Mel says Kiss my arse, I'd file BK before I give you anything you A-hole. Charlie puts the hammer down to take any chance of Mel even thinking about using more shares to pay down Feb debt by tipping the Times that SIRI is close to filing BK...thereby dropping the stock into oblivion where no one would accept shares. Mels block: Cut off talks with Ergen and approach Malone, Ergen's rival. Mel tips the Times (Andrew Ross-Sorkin no less) on the talks but gives no details on how long they've been going on. Sorkin goes right to press with it. Malone of course bites on talks now that Ergen is playing hardball since he might not mind having a hand in bitch-slapping Ergen upside the head (again). If Malone bites to help SIRI, it will more about f'ing Charlie than helping Mel. Satrad is Dead (Underdog), you actually had a cogent thought!!
All believers. Rumor mill is grinding hard. Now we know the play. Mel's Mr. 11th hour. And he would rather BK than give anything to Charlie Ergen. Good for him. But he won't file because he would be throwing away everything. Some people say SIRI should just file, lose all their debt and emerge a better company. If it were only that simple my friends.
Just doesn't work that way. Too much at stake here and too many vultures would circle to pounce in that weakened state...and there would be little Mel could do to hang on to the company. Mel knows this better than anyone. No...this company gets a reprieve. No doubt. As cos1000 says... watch for the news Tuesday morning.
Disbelievers: ESAD...
SIRI is "testing new lows"? Really? SIRI is priced for BK, dope.
Will it happen? Of course not.
Reports of SIRI's so called demise..are greatly exaggerated. Look at all the misinformation out there. Also..doesn't make sense for Mel to be walking Bob Kraft around the studio if he is on the verge of losing everything and "supposedly" locked into negotiations with Ergen. As cos1000,relmor,sl162 and others have all said...do your own information gathering. If you do....things look far different from what has been reported up to yesterday afternoon.Yes SIRI has a large amount of debt..but the BK talk is almost ridiculous to be out there right now. They are trying to play us all....and for all you bashers out there....hope you know the majority of you are nuckin futz!