With Thursday's SEC filing by Sirius XM Radio (SIRI) comes a reminder of just who it is that is steering the ship. That would be John Malone. With 3 seats on the current board and the right to take 3 more, I thought I'd take this opportunity to review just what it is that Liberty Media (LCAPA) sees in Sirius XM.
This video interview with Greg Maffei, Liberty Media CEO & president, and CNBC's Maria Bartiromo, demonstrates the insider perspective of the company going forward. One key point is the fact that Liberty sees Sirius XM as being profitable based on only a 9 - 10 million unit, annual auto sales rate. Just Wednesday, Goldman Sachs increased their projections to 11 million, which certainly puts Sirius XM in the driver's seat...literally!
Mr. Maffei goes on to describe the multiple platforms that Liberty envisions Sirius XM will be able to expand its subscriber base with. The Annual Shareholder Meeting scheduled for next month coincides with first quarter results. This will present an exceptional opportunity for the company to forge a definitive plan for growth.
Position: Long SIRI
