Sirius XM Goes Worldwide with Liberty Global

By Steve Garcia

Looking at Liberty Media, and all its diverse holdings, I have been unabashedly excited at what I have found as it relates to SIRIUS XM (SIRI). There are many both fundamental and speculative reasons to be excited at this strategic partnership. Whether it be DirecTV (DTV), Wild Blue, Zoombak, mobile streams or any of the other Liberty Media holdings, one can’t help but wonder what is to come. Especially, as a fan of Sirius XM Radio. Though these things alone are enough to get any true fan daydreaming about the possibilities, there may be more to what is going on and in play than meets the eye.

With the APPLE (AAPL) OS 3 application just days from release, and with Sirius recently commenting on its Apple application coming before the end of the 2nd quarter, things are looking up. The iPhone app will undoubtedly be a player with Internet radio from a global perspective. It appears that things are also looking global for Sirius XM. To that end, let me bring to focus another piece of John Malone’s global empire, Liberty Global (LBTYA, LBTYB, LBTYK).

Liberty Global, Inc. (“Liberty Global”) is the leading international cable operator offering advanced video, telephone, and broadband internet services. We operate broadband communications networks in 15 countries principally located in Europe, Japan, Chile, and Australia. Liberty Global’s operations also include significant media and programming businesses such as Chellomedia in Europe, as well as interests in content businesses in each of our regional markets.
Through the efforts of 22,000 employees worldwide, Liberty Global connects 16.9 million customers to the world of information, communications, and entertainment. As of March 31, 2009, Liberty Global’s networks passed more than 34.0 million homes and served more than 26.0 million RGUs, including approximately 15.5 million video subscribers, of which 6.8 million were digital cable and DTH subscribers, 6.3 million broadband internet subscribers, and 4.8 million voice subscribers.
• Active in Europe (UPC Broadband, Telenet, Chellomedia), The Americas (VTR, Liberty Puerto Rico) and Asia Pacific (J:COM, Austar)

It would seem that Sirius XM is not just a taker, but also a giver to the Liberty companies and John Malone. They get exclusive content and can leverage it over multiple possibilities….which I am sure was part of the justification for the agreed investment stake just when Sirius outwardly appeared to be imploding. Liberty Global has a large subscription base already…just like Sirius, giving that base a potential purchase option of exclusive subscription programming can only help.

In addition, the iPhone app just might be a lot more important than we think. It seems that this all is coming together like a puzzle of a thousand pieces that is turning into global expansion without the hurdle of Spectrum licensing that is so expensive and difficult to procure.

As I close let me just say that there is a lot more to what is unspoken, than to what is constantly rehashed over and over again in the mainstream media. Jim Cramer stated that Sirius' stock was worthless. This is probably not something he should read. It would make too much sense….and who wants to deal with that?

Position: Long SIRI.

Comments

[valuestocks...:]

Cramer is a GS cronie and always will be. He just can not take that he was and is wrong about SIRI.

Jun 03 09:48 AM

[Sheree:]

Very informative article! Really gets you thinking about all of the un tapped possibility's for Sirius XM and what's to come.....

Jun 03 06:39 PM

[Ricker:]

I hope the anticipation does'nt kill me before the future unfolds!

Jun 03 07:09 PM

[jmsithy:]

yeah 4 dollars I will buy that


On Jun 03 08:47 PM get out of debt wrote:

> awesome...siri stock 4 dollar
>
> good articles>... sogood.net/a429c6

Jun 03 08:55 PM

[Mr. Stupid:]

Siri should be up tomorrow. Siri has remained stable with all the GM news. Car sales have increased dramatically and is a sign of things to come. Get in now or get left behind.

Frank

Jun 03 09:08 PM

[jmsithy:]

dont count your stock before it hatches / it would be nice if it was though / How do you know it will be up??


On Jun 03 09:08 PM Mr. Stupid wrote:

> Siri should be up tomorrow. Siri has remained stable with all the
> GM news. Car sales have increased dramatically and is a sign of things
> to come. Get in now or get left behind.
>
> Frank

Jun 03 11:01 PM

[Crankly09:]

Nothing's happening with this stock (AND GOD I WISH IT WOULD) until car sales turn around, which they will eventually. Until then, the metrics will get marginally better each quarter, the Apple deal will help a bit, SIRI will unveil some new ideas and continue to improve the bottom line.......But we won't see the spike until we're over 20 million subs and above 500 million positive yearly cash flow.

Sky's the limit after that!! Accumulating until then........

Jun 04 12:08 AM

[Siriphone:]

20m subs by the end of Qtr 2. Plus thousands of "best of" upgrades. Assuming the App. is released on the 8th...

IMHO...

Jun 04 06:49 AM

[jmsithy:]

how do you know its released on the 8th I have been looking for info on this.

I have 200.00 riding on that it will be at .30 by Friday


On Jun 04 06:49 AM Siriphone wrote:

> 20m subs by the end of Qtr 2. Plus thousands of "best of" upgrades.
> Assuming the App. is released on the 8th...
>
> IMHO...

Jun 04 06:57 AM

[User 399706:]

This stock is not going anywhere for a good long time, if it even does at all. The money people have invested here in siri is just money that could be making gains in the market somewhere else. I will get back in siri when it shows signs of going somewhere but for now my money is being put to good use! It took me some time to get out of this stock and I am ready to get back in but this stock when it has reason for life it is in a place it will stay for some time to come.

Jun 04 12:22 PM

[Mr. Stupid:]

Ok, then which stocks do you recommend? That's very open ended comment with nothing substantiating your plan.

Frank


On Jun 04 12:22 PM User 399706 wrote:

> This stock is not going anywhere for a good long time, if it even
> does at all. The money people have invested here in siri is just
> money that could be making gains in the market somewhere else. I
> will get back in siri when it shows signs of going somewhere but
> for now my money is being put to good use! It took me some time to
> get out of this stock and I am ready to get back in but this stock
> when it has reason for life it is in a place it will stay for some
> time to come.

Jun 04 01:36 PM

[Elle~7:]

What about the reverse stock split?? I mean wont it matter to you if you have 5000 shares and they get cut to 1000 shares? I KNOW the value does not change you get the upped stock price in value but what about the increase after the split?
So the stock increases by $1 you get $1000 not $5000 or if you had 10,000 shares and a 1 for 5 split gives you 2000 shares ~ I mean won't that matter to you? Is this Not why all the insiders have SOLD their shares to get the "options" to purchase at .35 later?
but shrinking the shares outstanding now...?

I THINK this is where Cramer is coming from( I have not checked his comments at all) but he knows how things slice ~ and he is being his usual by saying the stock is worthless, because basically your gonna fell pretty beat up after the reverse split No? But AFTER that he will probably Re-value the stock price, as other analysts will also... Then, it will be pretty good?

Jun 05 09:48 PM