DirecTV / Liberty Entertainment Merging: Why This Affects Sirius XM

DirecTV (DTV) and Liberty Entertainment (LMDIA) on Monday announced that they will be merging and spinning off the merged company. Liberty's programming units Liberty Sports, the Game Show Network and Fun Technologies will be merged with DirecTV. As part of the deal the new entity will assume $2 billion of Liberty's debt and $30 million in cash. DirecTV will also make $650 million in Liberty loan payments.

Analysts said the consolidation of Liberty's Entertainment and DirecTV units could help clear the way for Liberty Media's eventual control of Sirius XM Radio (SIRI).

It's a little disheartening that any company (including Liberty Media) now owns 40 percent of Sirius XM. Liberty Media, as part of deal with Sirius XM Radio, is not allowed to acquire more than 49.9 percent of Sirius XM Radio for three years. Inevitably, after three years, Liberty Media will likely increase their stake and moves like this help to clear the way for that to happen.

Additionally, moves like the recent "poison pill" move is a sign that Sirius XM Radio may be positioning itself to make an acquisition too expensive for anyone but Liberty. Sirius and XM Radio shareholders currently still own 60 percent of the company. Our only issue with Liberty is that no one truly knows their agenda yet as it relates to Sirius XM Radio.

Disclosure: Author holds a long position in SIRI

Comments

[wholesalecd:]

Here's my prediction.\

Sell now and set your buy point at .30 for Thursday. Probably will go lower but what the heck, .30 is an adequate buy point. Siri will probably flunctuate between .25 and .35 throughout the day so hang on for the ride. After thursday Siri will gradually increase back between .40 and .50. This will be the next SELL point.

Face it, it's only good to be long if Siri sells itself at a nice premium.


jay boy billy

By the end of the year I DO predict, against the grain, subs will increase since the auto industry will stablize and more people will integrate to SatRad.

I do see this company viable for the long-term since it will

May 05 04:58 PM

[wholesalecd:]

You need to be REAL WARY of anything that has CHINA involved. These Chinese companies are well known to have a lot of corruption and misleading investors. APWR might look like a nice long-term trade because of all the news but any news that comes from China should be looked at with a speculative eye.

jay boy billy


On May 05 04:50 PM Davidpeers wrote:

> Siri will be just fine as the economy begins to turn....2 buck stock
> by year end..IMO..If you want a GREAT China play, take a look at
> APWR!!!! Now that's a sure thing, that's going to 50.00 in a year
> or two!! Here's to Thursday!!

May 05 05:02 PM

[connorport:]

I predict two things. One we see a surprise Q1 that will run the stock to .70 and two i see the likes of Wholesale and BC scattering like rats. If you take one thing away from here take some advice not from me but from one of the richest men in america (Warren Buffet). When you see a bargain buy it. To date i have used his philosophy's and since Nov have moved from -500% position to +40% position and we still have a long way to go. Hello! When gas is 99 cents a gallon and you guys keep circling the station calling everyone in line dumb we all just stare back and feel sorry for the true stupidity that lingers out there.


On May 05 04:50 PM wholesalecd wrote:

> I only post to help. They need some FIRE under their feet right now
> to see Siri will be down big on Thursday.
>
> Sell now and buy back on Thursday on the down swing.
>
> Jay Boy Billy

May 05 05:10 PM

[CoolHead:]

Relmar,
What are you looking for as a selling point for this Thursday? perhaps $0.56 to book profits and rebuy at a lower level?
Also, do you know if they are reporting after the market closes on Thursday or earlier in the day?

Thanks Relmar for flow of good advice! You are the man!


On May 05 03:09 PM relmar2003 wrote:

> I have a program that tells me when my stock is in the green. Its
> in the green right now. Only program I use to gauge value. You take
> you buy point,and you see where its at now. If its up, its called
> "in the green baby". Right now with SiriusXM I am in the green. Book
> profits? Of course you book profits. When it hits my sell targets,
> its automatic. You see wholesale, I have a program for that too.

May 05 05:10 PM

[connorport:]

Besides when do we sell supposedly. The stock keeps moving up.

May 05 05:11 PM

[connorport:]

Whats this? Are you trying to shimmy to bright side. Wow! Hey Relmor! I thinks we gots us a big one here, help me reel'er in. She feisty though!


On May 05 04:58 PM wholesalecd wrote:

> Here's my prediction.\
>
> Sell now and set your buy point at .30 for Thursday. Probably will
> go lower but what the heck, .30 is an adequate buy point. Siri will
> probably flunctuate between .25 and .35 throughout the day so hang
> on for the ride. After thursday Siri will gradually increase back
> between .40 and .50. This will be the next SELL point.
>
> Face it, it's only good to be long if Siri sells itself at a nice
> premium.
>
>
> jay boy billy
>
> By the end of the year I DO predict, against the grain, subs will
> increase since the auto industry will stablize and more people will
> integrate to SatRad.
>
> I do see this company viable for the long-term since it will

May 05 05:15 PM

[wholesalecd:]

I've seen this same scenareo play out many times. Sirius investors get all riled up and think Siri stock will head to the moon only to get disappointed again and again.

Sell now then set your buy point at .30 on Thursday.

Invest smart and make a little money. Remember, 17% of something is always preferred over 100% of nothing.

And one of W. Buffets best lines, "No one ever went broke taking a profit."

Jay Boy Billy

May 05 05:33 PM

[IMCRAWLYN:]

LISTEN DOG
WHAT EVER YOUR AGENDA ?
WE ALL KNOW YOU CANT TOUCH RELMOR WHEN IT COME'S TO SIRI
YOU'R LIKE A FREAK'N CRY BABY
I BET YOU THURSDAY NO ONE WILL BE ABLE TO FIND YOU HERE
SO START LOOKING FOR A HOLE TO HIDE IN

On May 05 05:02 PM wholesalecd wrote:

> You need to be REAL WARY of anything that has CHINA involved. These
> Chinese companies are well known to have a lot of corruption and
> misleading investors. APWR might look like a nice long-term trade
> because of all the news but any news that comes from China should
> be looked at with a speculative eye.
>
> jay boy billy

May 05 05:37 PM

[connorport:]

Your right. I should have gotten rid of that pesky RIMM @ $38 and that APWR @ $3.50 and oh yeah that darn GE, you're right should have dumped it @ $6. Do these look like good plays to you? If you guessed no, then you are right! All of these found a bottom as well as SIRI. SIRI has been bogged down by the SEC, Shortselling, and investor fear spread by the likes of analysts who tried to warn us the sky was falling a year ago but we didn't listen. No wait, Yeah they didn't. Get on or get run over!


On May 05 05:33 PM wholesalecd wrote:

> I've seen this same scenareo play out many times. Sirius investors
> get all riled up and think Siri stock will head to the moon only
> to get disappointed again and again.
>
> Sell now then set your buy point at .30 on Thursday.
>
> Invest smart and make a little money. Remember, 17% of something
> is always preferred over 100% of nothing.
>
> And one of W. Buffets best lines, "No one ever went broke taking
> a profit."
>
> Jay Boy Billy

May 05 05:52 PM

[connorport:]

Your right! If this were the right time. Its definitely the wrong time for me. I'm a patient person. As for APWR being speculative, again you're showing your true lack of knowledge in the worlds stock markets. At this time China will lead the world out of this recession as they have no sluggish gov't regulations to slow them down. Over there its about progress and getting ahead. They will while America sits here with their picket signs trying to block WindTechnology because it blocks a heard of Buffalo's view of the mountains.


On May 05 05:33 PM wholesalecd wrote:

> I've seen this same scenareo play out many times. Sirius investors
> get all riled up and think Siri stock will head to the moon only
> to get disappointed again and again.
>
> Sell now then set your buy point at .30 on Thursday.
>
> Invest smart and make a little money. Remember, 17% of something
> is always preferred over 100% of nothing.
>
> And one of W. Buffets best lines, "No one ever went broke taking
> a profit."
>
> Jay Boy Billy

May 05 05:57 PM

[connorport:]

I also guess with an investment from GE that should really make us weary.

May 05 05:59 PM

[connorport:]

I like this one too. Bought 3000 @ 3.53. I did the metrix on this company and with nothing added to its books and trading at todays distressed ratios it would trade around 20-25 a share in 2011. So it was a no brainer to buy @ 3.50. When this clown see a 200% pop in a month and a half he can talk.


On May 05 04:50 PM Davidpeers wrote:

> Siri will be just fine as the economy begins to turn....2 buck stock
> by year end..IMO..If you want a GREAT China play, take a look at
> APWR!!!! Now that's a sure thing, that's going to 50.00 in a year
> or two!! Here's to Thursday!!

May 05 06:04 PM

[wholesalecd:]

I sense a lot of unjust anger regarding Siri. This only leads me to believe so many of you have lost big with this stock and think your anger will turn it around. That's not how trading works. It's ok to look at the bright side of things but tunnel vision at best is never a viable thought process. Usually those that are angry are those that will continue to lose since they lose focus.

Anger will only make you more angry when you lose money again on Thursday. That is if you don't sell and take a profit now. You still have hour and half in afterhours to follow my due diligence.

And I have to correct whoever stated China has better regulation on it's public held companies like APWR. It's actually the oposite.

JAY BOY BILLY

May 05 06:35 PM

[jmsithy:]

Well it looks like it might hit .56 by tomorrow by the rate its buying after hrs is at .49


On May 05 05:10 PM CoolHead wrote:

> Relmar,
> What are you looking for as a selling point for this Thursday? perhaps
> $0.56 to book profits and rebuy at a lower level?
> Also, do you know if they are reporting after the market closes on
> Thursday or earlier in the day?
>
> Thanks Relmar for flow of good advice! You are the man!

May 05 07:32 PM

[jmsithy:]

They are reporting before Market opens Thursday


On May 05 05:10 PM CoolHead wrote:

> Relmar,
> What are you looking for as a selling point for this Thursday? perhaps
> $0.56 to book profits and rebuy at a lower level?
> Also, do you know if they are reporting after the market closes on
> Thursday or earlier in the day?
>
> Thanks Relmar for flow of good advice! You are the man!

May 05 07:34 PM

[jmsithy:]

This looks like it will go up another .06 to .10 tomorrow

May 05 07:38 PM

[jmsithy:]

wholesalecd.

can I borrow some money to invest in this... Siri

May 05 07:39 PM

[holmesnmanny:]

He has no money. He lost it all using his award-winning trading ideas.

May 06 04:09 AM

[wcorowitz:]

where's wholesale?

May 06 03:38 PM

[holmesnmanny:]

I'm gonna guess crying in his bedroom?

May 06 06:53 PM