East Meets West in the Sirius / Liberty Deal 29 comments
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Whether real or simply perceived, there seems to exist a stark difference in how business is conducted east and west of the Mississippi River. Eastern based businesses tend to more staunch and more conservative. Western based businesses seem to be more innovative and think more outside of the box. One is not necessarily better than the other, it just seems that there are differing mindsets based on geography.
Having lived on the west coast, as well as the east coast, and being a frequent traveler, I have a diverse and keen perspective how different things can be even in our own country. One thing is certain. The east coast has been hesitant to give up the suit, tie, and cuff links, while executives out west tend to be far more casual in their attire. The more easy going style out west is what brought us telecommuting, and flex-time. These innovations in business are not technical, but do lead to comfort levels for employees that make them take the extra steps for the company. In terms of synergy, the Liberty (LCAPA) deal could be a virtual yin and yang of American business.
Sirius XM (SIRI) is an east coast company. They think more traditionally. Mel Karmazin recently said himself that he is not an innovator, but rather an operator. In a twist of events (or fate), Sirius XM found themselves with a heavy debt load that was due quickly. The company struggled in ever tightening credit markets to obtain reasonable financing, but were not having much luck. It was this circumstance that brought about the Liberty Media deal, and with it, a western thought process.
The Liberty deal can mean far more than an infusion of cash and financing of debt. There is potential that Liberty could bring an infusion of new thinking to Sirius XM. This likely has already started, but the real east/west synergy will begin when Liberty obtains the three seats (they can seek up to six) they are currently seeking on the Board of Directors. Over the next 2 years, there are many decisions that need to be made. From programming, to management, several key relationships are up for renewal. The insight and western thinking of Liberty could not have come at a better time. Some key moments in the next 24 months:
Mel Karmazin - His employment agreement expires in November of this year. Will Karmazin remain with Sirius XM, or will the company seek another direction? Karmazin has his fans and his critics, so the coming months will be interesting.
Scott Greenstein - The Chief Content Officer has a deal that runs through July. Greenstein was instrumental in bringing content to Sirius during the time when XM was a competitor. Yes, the deals were expensive, but he did get them done. The question at this point is what Greenstein sees in the near future as some key deals are set to expire.
James Meyer - The president of sales and operations has an employment contract through April of 2010. He carries some interesting clauses that center around July 28th 2009. The Board will have decisions to make in only a few short months.
Patrick Donnelly - Like Meyer, Donnelly has an employment agreement that ends next April.
Howard Stern - The Stern Deal, which is oft misunderstood, expires December 31st 2010, a bit over 18 months from now. The contract is now at a stage where people are beginning to wonder if Stern will renew, and if so at what terms. Here is another area where Sirius XM’s relationship with Liberty may come to play. Could Stern’s Howard T.V. brand be headed for satellite television as a combined deal? While pure speculation, the fact of the matter is that with Liberty as a partner, Sirius XM now has far more to negotiate with than they did before.
NFL, MLB and NASCAR - These are all deals that have approaching expiration dates. Major League Baseball is the furthest out, but the company already needs to be strategizing about how to negotiate these deals going forward.
The bottom line is that there is a lot that is going to happen at Sirius XM in the next two years. Liberty Media will have some influence in how things pan out. Obviously the Liberty deal is already good for Liberty. Even without the preferred shares that convert to 40% of the common stock, Liberty makes healthy interest on their loan. However, I do not think the interest alone is what Liberty is after. They want to make those preferred shares even more valuable than they already are. With substantial skin in the game, and a western perspective on business, shareholders may see some great things coming from Sirius XM Radio because there is now a healthy mix of east and west.
Position - Long Sirius XM Radio, No Position Liberty Media
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As far as competition most say it will be from the internet but with many high speed providers putting caps on usage with serious financial penalties if you exceed the limits I think more people will turn to SatRad for the biggest bang for their entertainment buck.
I know I'm not adding $50. to $100. to my phone bill to listen to music or get video.
On Apr 30 09:42 AM Ishortyou wrote:
> the thing is how are they going to compete with cheap almost free
> open internet media? that is one of the reason their cash flow is
> not that great, needles to say that the car industry is already belly
> up for many years to come. No good cash flow no good ways to pay
> up obligations.
On Apr 30 09:42 AM Ishortyou wrote:
> the thing is how are they going to compete with cheap almost free
> open internet media? that is one of the reason their cash flow is
> not that great, needles to say that the car industry is already belly
> up for many years to come. No good cash flow no good ways to pay
> up obligations.
On Apr 30 10:06 AM burnout wrote:
> Brandon, excellent clarification on the Howard Brand.
> Those of us that have followed you for years know this but with all
> the new shareholders it was good to see you elaborate.
> It also shows that those calling for certain people bashing the stock
> on this board to be removed can get some good information as the
> result of their inane comments.
> Any responses directed to those people will do nothing to change
> their minds but can be informative to the rest of us. Bravo.
What his motives were made us all curious.
Howard Stern's farts his obsession.
"I have no clue." Should be his confession.
Hope my story doesn't make him too furious.
On Apr 30 08:46 AM BChargers wrote:
> I think most understood his deal; Howard Stern's career was virtually
> over. Radio didnt want him and the E network had let him go in favor
> of someone (35 years) younger and current . Almost everyone knew
> Howard Stern aka Fartman peaked back in the 80's .
> In 2005 he was virtually off the radar entirely.
In 2006, Stern was named one of the 100 most influential people in the world by Time Magazine" and was ranked as the world's 7th most powerful celebrity by Forbes.
An adaptation of his radio show fit into a half-hour program each weekday on E! from 1994-2005,
Starting June 20, 1994 the radio show was filmed and adapted into Howard Stern, a television show broadcast each weekday on E! until July 8, 2005, although E! continued to rerun episodes until December 31.
Sensorship issues are why the show ended. It was still shown in reruns for 6 months because of viewer demand.
On Apr 30 12:24 PM burnout wrote:
> BChargers was once bashing Sirius.
> What his motives were made us all curious.
> Howard Stern's farts his obsession.
> "I have no clue." Should be his confession.
> Hope my story doesn't make him too furious.
>
>
POEMS???
My God. Its YOU with yet another screen name.
Make me some more poems so I can do what I did with the last batch. LMAO
For those of you that arent this guy. I have a gay internet stalker that follows me around FOR YEARS. He usually disagrees with whatever I say or he will just make a one word post replying to mine.
He is a legitimate psyco. Watch for a hundred new screen names all directed to MY posts.
Oh God here we go again LMAO
If I have some extra time I'll repost some of those poems from
homo obsession boy.
I kind of thought that floorhomo was him but he agreed with me. That was out of character.
On Apr 30 12:54 PM BChargers wrote:
>
..." He will be making posts DIRECTED @ ME AND NOT SIRI".
On Apr 30 01:03 PM burnout wrote:
> Since you just appeared here several weeks ago I have no idea what
> you are talking about but that is OK because you obviously don't
> either.
On Apr 30 01:13 PM BChargers wrote:
> And so it continues ...
> ..." He will be making posts DIRECTED @ ME AND NOT SIRI".
>
On Apr 30 01:50 PM burnout wrote:
> Since 95% of your comments are directed toward other posters you
> have no room to talk. Furthermore all of my posts directed toward
> you have been to provide indesputable evidence you are making false
> statements. I guess I will just have to go back to ignoring you and
> let anyone else here that sees you making false statements deal with
> it, unless they all start to ignore you. You can be sure this will
> be the last post directed toward you, but I reserve my right to comment
> to others about your inane comments and mindless dribble.
This is your 7th last post to him in 3 days. LMAO@U
Since 95% of your comments are directed toward other posters you have no room to talk. Furthermore all of my posts directed toward you have been to provide indesputable evidence you are making false statements. I guess I will just have to go back to ignoring you and let anyone else here that sees you making false statements deal with it, unless they all start to ignore you. You can be sure this will be the last post directed toward you, but I reserve my right to comment to others about your inane comments and mindless dribble.
On Apr 30 01:59 PM FloorHomo wrote:
>
On Apr 30 02:04 PM burnout wrote:
> You also have no clue what you are talking about so the same goes
> for you. I have already said I suspect you and he\she\it, are one
> in the same.
> Since 95% of your comments are directed toward other posters you
> have no room to talk. Furthermore all of my posts directed toward
> you have been to provide indesputable evidence you are making false
> statements. I guess I will just have to go back to ignoring you and
> let anyone else here that sees you making false statements deal with
> it, unless they all start to ignore you. You can be sure this will
> be the last post directed toward you, but I reserve my right to comment
> to others about your inane comments and mindless dribble.
OBSESSION
www.satwaves.com/satwa...
On October 6, 2004, Stern announced on his show that he had signed a five year contract with Sirius, a satellite radio service. Sirius provided a budget of $500 million USD to pay Howard, his staff and general production costs. His personal salary has not been revealed. Other media sources have claimed that Stern netted a $225 million one-time stock bonus for meeting subscriber quotas, with the latter being true in January 2006.
On May 01 04:47 AM Thomass wrote:
> I think Tyler is wromg about the Howard deal. Howard Stern is being
> paid 100 million a year for five years plus incentives. That goes
> to him not for staff or for building a studio,for his pocket. He
> always makes it clear that he has nothing to do with paying anybody.
> On top of that Sirius even shells out for his security and driver.
> I don't think it would have been such a good deal if he had to pay
> all that staff and other major shows.
On May 01 04:47 AM Thomass wrote:
> I think Tyler is wromg about the Howard deal. Howard Stern is being
> paid 100 million a year for five years plus incentives. That goes
> to him not for staff or for building a studio,for his pocket. He
> always makes it clear that he has nothing to do with paying anybody.
> On top of that Sirius even shells out for his security and driver.
> I don't think it would have been such a good deal if he had to pay
> all that staff and other major shows.
SIRI stock was $7.00 the day before Howard Stern opened his microphone. It TANKED ever since.
Howard Stern is a dinosaur -That LOOKS @ skanks ON RADIO Can anyone, ANYONE explain why Sirius gave him 20 bux , much less $500,000,000.00 + ? Sirius could have given away 5 million radios to swipe up the market from XM and still been in better shape than paying Fartman more than the whole company is now worth. -