Sirius Investors Should Note Liberty Media's Conference Call Friday

Investors will have barely had a chance to digest the Sirius XM Radio (SIRI) conference call when the next important call comes up. Liberty Media will be holding their Q1 2009 conference call at 12:00 PM EST in Boston. While the conference call will not likely speak directly to Sirius XM Radio, it is a unique opportunity to hear Liberty’s Gregory Maffei speak. Maffei has been tapped to join the Board of Sirius XM Radio, and fills one of the three seats sought by Liberty. Because of the number of shares Liberty owns, they have the right to select up to six board members at Sirius XM Radio.

One of Maffei’s main responsibilities with Liberty was presiding over the branch of the Liberty tree that was in control of DirecTV (DTV). I feel it is important that investors get to know Maffei because there is potential that he will be a very influential member of the board. The current contract of CEO Mel Karmazin expires in October of this year. At this point there has been no announcement as to the status of Karmazin’s contract. While I do not see him being ousted, he does have a personal decision to make. If he should decide to retire or move on, Maffei would likely be on the short list of potential candidates to take the helm. Bear in mind, this is speculation.

The importance of understanding Liberty rests in the structure of their current deal. They already control 40% of Sirius XM, and have rights to raise that percentage to 49.9%. After two years, they could raise their stake even higher if they desire. Malone is a deal maker, and because of this, it is good for investors to garner an understanding of the workings of Liberty. This is not to say that Malone is shopping things around at this moment, but indeed he has plans that go well beyond the interest payments on the loan to Sirius XM.

If you are serious about your investment in Sirius XM, it is worth your while to invest an hour into listening to the Liberty call.

Position - Long Sirius XM Radio

Comments

[wcorowitz:]

I haven't been that impressed with Mel. He's let many oppurtunities slip by. He shows up every now and then and butchers a conference call. Where's the innovation with this product? Let's get some revenue rolling the iphone app, then let's develop an app for the blackberry.

May 08 08:52 AM

[jmsithy:]

Here is something to look at www.proxyvote.com/0119...

May 08 08:54 AM

[Neal Barkett:]

It will be interesting to see if Maffei expounds on free commercial based radio format for Sirius Xm. He has talked of it before and would like to know if this is something that really has legs. Also I too am wondering about where & when we are going to see some clearity on innovation within the company. I would hope Mel is in that camp, but so far am dissapointed.

May 08 09:08 AM

[Randall Pin...:]

The end of Satellite radio is upon us.......... Get out at 42 if you can today, because it wont be back there again for months.

Siri to .25

Position------ doggiestyle

May 08 09:15 AM

[peshu:]

I would like to see someone takes the leadership towards Sirius XM and Liberty Media rather Mel as a CEO. I'm not impressed with Mel Karmazin because he is always messing up with shareholder in the conferencee call.

Being an investor for the last one year in this SIR, I have never seen Mel is boosting up his business or atleast showing any restructuring plan for the future.

If the business is going down he should show some strategic plans how to improve the buisness model... fuck Mel Karmazin!

May 08 10:31 AM

[wholesalecd:]

This is just the beginning for several days to the downside. I would sell now and get back in at .25 to .30.

JAY BOY BILLY

May 08 03:52 PM

[Roxieanne:]

Jay Boy Billy

Why are you advocating selling. And why should I do what you say.

I checked in on this board to see what Tyler had to say ----and here you are again saying, sel, sell, sell.

Thanks-----please state your reasons clearly.


On May 08 03:52 PM wholesalecd wrote:

> This is just the beginning for several days to the downside. I would
> sell now and get back in at .25 to .30.
>
> JAY BOY BILLY

May 09 01:52 PM

[wholesalecd:]

The reasons shouldn't be that hard to understand. The reasons are in the numbers. Face it, this company soley relies on auto sales. Toyota sales dropped like a rock. Ford is better off but still struggling. GM and Chrysler are both drains. I could go on and on but the money save from cost cuts is only relevant if their subs are sustained or increasing.

JAY BOY BILLY


On May 09 01:52 PM Roxieanne wrote:

> Jay Boy Billy
>
> Why are you advocating selling. And why should I do what you say.
>
>
> I checked in on this board to see what Tyler had to say ----and here
> you are again saying, sel, sell, sell.
>
> Thanks-----please state your reasons clearly.

May 09 04:23 PM

[wholesalecd:]

I informed investors to sell on Wed and some took my advice. Some didn't and they lost money. The stock did a fake upswing pre-market and that is expected to make those think the stock will pop but any one that has followed this company knows how the market manipulates the average investor. Relmar didn't follow my advice and lost money. Connorport did the same. Are they following my advice now???? Not sure but they should and they should sell and buy back at .25 to .30.

JAY BOY BILLY

May 09 04:27 PM