Sirius forms independent committee for Liberty bid, shares remain at premium

Sirius XM Radio (SIRI +0.8%) has named former DirecTV CEO Eddy Hartenstein, former DaimlerChrysler CEO James Holden, and long-time American Express executive Joan Amble to a 3-person special committee to evaluate Liberty Media's (LMCA +0.4%) $3.68/share bid.

SIRI shares closed the day at $3.86, a 4.9% premium to Liberty's bid, as investors continue holding bets that the offer will be boosted.

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Comments (20)
  • taskassistant
    , contributor
    Comments (85) | Send Message
    Is this a special INTERNAL company committee. BODs cannot be trusted to work in the best interest of the common shareholders. I think we need someone from outside the BOD to be there to take a look at what is discussed. What about Ralph Nadar???????
    7 Jan 2014, 07:34 PM Reply Like
  • headybaldguy
    , contributor
    Comments (1578) | Send Message
    task, every member of the BODs of any public company is a fiduciary for its shareholders(all of them). If they breach this responsibility, they open themselves up for a class action suit.
    7 Jan 2014, 08:43 PM Reply Like
  • Newgate
    , contributor
    Comments (124) | Send Message
    heady, good point on the fiduciary bit. Also, a point not mentioned yet by anyone, is that if the independent committee reaches a higher figure than Malone's low-ball, isn't that a catalyst for a spike in SIRI's SP? If so, that would be the time to unload SIRI for those who wish to. What do you think?
    7 Jan 2014, 10:44 PM Reply Like
  • edwardstewart
    , contributor
    Comments (155) | Send Message
    Let it go man, let it go. Feel ok letting go in the $3.80's (hopefully you brought it lower). The market is speaking. As a long term looking forward investor in siri I could justify how "expensive" the stock was trading over earnings because the company has value into future but that future is going to be cut short. Shortly we will not be able to invest in the beauty that satrad is. Look at the last 2 days of trading. If there is no spike tomorrow due to market close news today from siri it will signal a triple confirm in a very big way. While it is on the low side of cause as a first offer, If you think Malone pulled $3.68 out of his behind because the guy is a fool you are simply clouded and understandably so - we were all looking for a great run up purely invested in siri. $5 - $8 a share was coming shortly, but not anymore. Read this piece too
    7 Jan 2014, 07:51 PM Reply Like
  • headybaldguy
    , contributor
    Comments (1578) | Send Message
    edward, it is much too early to throw in the towel. There is no way that Malone is going to get away with a stock swap at $3.68.
    7 Jan 2014, 08:46 PM Reply Like
  • f f
    , contributor
    Comments (28) | Send Message
    Value of satellite spectrum, there has been a lot freed up since the merger with XM, this is probably the most valuable asset.
    Strong guidance.
    Huge FCF
    In Car Telematics with tremendous room for growth.


    Sirius is certainly starting to hit its stride.
    Its too bad that Malone is doesn't see this is the real cash cow for Liberty and let it mature and reap the benefits.
    Liberty Buying TW is almost like when TW bought AOL. The cable subscription model has no where to go but down with so many canceling, and Google getting into the transmission side of biz.
    Liberty's plans to take over control at such a low share price, use the FCF to leverage other deals and then spin it off does a huge injustice for the average investor.
    7 Jan 2014, 07:59 PM Reply Like
  • cmcliamfinnoliver75
    , contributor
    Comments (23) | Send Message
    pundits and critics are everywhere....but the bottom line is that SIRIUS is the ONLY satrad product on the market and was indeed heading to a $5-$10 pps based on the well known laundry list that has been stated over and over (today's guidance as an example). .....but the bottom line is that JM is hell bent to create a cable empire and revive the 1980s when he was king and rule with his usual and expected power wielding wand. The NOLs and the cash flow are why he bailed out this iconic brand to effect this very act.


    because he knows how the systems works, he is working the system...period!


    after Sirius is laid to rest, who is going to follow LMCc when it is a smorgasbord. From baseball to books to cable and much more and with a little satrad for measure, who is going to be exited to see how this vegetable soup is cooking? the only positive here is if the $4-$4.25
    pps can be met and those of us with lots of shares can take some off the table and then wait for the grim reaper to "swap" the balance.


    If only we had a voice; and to the select committee....really? that is indeed a selected committee NOT an independent one.
    7 Jan 2014, 08:31 PM Reply Like
  • kenson
    , contributor
    Comments (10) | Send Message
    And when the balanced is swapped you will be much less significant on the smorgasbord. This recent guidance speaks to the viability of SIRI as a stand alone. You can only hope that the so called special committee does due diligence and presents a SP that reflects value with some thought of future value.
    8 Jan 2014, 12:16 AM Reply Like
  • Chancer
    , contributor
    Comments (4642) | Send Message
    The committee looks independent on its face, but hard to believe Malone would allow truly independent people to pass judgment. Unfortunately, it may take lawyers to get a fair price.
    $4-$4.25 is what will get a positive vote. The future for an independent SIRI (not Liberty C shares) had a potential of $10-$20. But that will not happen now. SIRI shareholders have to settle for Malone's crumbs.
    7 Jan 2014, 08:48 PM Reply Like
  • neeke1
    , contributor
    Comments (2) | Send Message
    Just hold on Sirius Shareholders. Time is on our side. Don't let them con us.
    7 Jan 2014, 09:06 PM Reply Like
  • SquareHead
    , contributor
    Comments (91) | Send Message
    I don't want a stock trade regardless of terms. I have owned XM since it went public. Rode the ups and downs because the concept is great. Bought a boat load when it hit its depths. I was planning to stick with Siri long term. I think the potential of satellite broadcasting is far from being realized. More market penetration and new products like the connected car. I don't want it diluted with a partial share of Liberty. Especially not under Liberty management. If the trade goes through I will probably cash out regardless of the price.
    7 Jan 2014, 09:37 PM Reply Like
  • bboggs
    , contributor
    Comments (61) | Send Message
    This stock swap, LMCA-C for SIRI, is disappointing. The SIRI Day Traders will need to select another low dollar (<$5) to actively trade.
    7 Jan 2014, 10:02 PM Reply Like
  • amedici
    , contributor
    Comment (1) | Send Message
    Minority shareholders should contact one or all of the law firms that are "investigating" and offer to join in a suit. Liberty dumped in the fall in an effort to (successfully) drive the price lower. Inside information told them that the last earnings report would be average so they put a strategy in place to manipulate the market to their advantage. Free cash for 2014 should nearly triple 2013. New car sales will be stable therefore increasing SIRI revenue plus a 3.5% price increase will further drive revenue. A buyout now would be good for SIRI's directors who have low priced stock options but shareholders will not receive fair value for this stock unless the deal is at $4.25 minimum. The FTC and FCC should be all over this from a competitive perspective and the SEC should examine the manipulative aspect. I'm a willing party to an injunction or shareholder class action.
    7 Jan 2014, 10:30 PM Reply Like
  • Googer
    , contributor
    Comments (1561) | Send Message
    amedici, I only hope the SEC does something about this Voting "NO" and will continue to vote no to their next low ball offer
    15 Jan 2014, 12:30 PM Reply Like
  • OCTO
    , contributor
    Comments (53) | Send Message
    R this people specialist independent or friends of M & M ?
    7 Jan 2014, 10:31 PM Reply Like
  • Gold&Guns
    , contributor
    Comments (5) | Send Message
    Real Sirius stock holders know where this company is really the same manner of Apple, FB, etc. this is where monopoly intersects with future growth in the form of modernized service offerings and eventually mobile cable style content and pay per view. Sorry these poor greedy pathetic shoals from liberty are not cutting my ticket short NOL whores! to let most of you know I've owned SIRI since the bailout hearings (die hards know what the price per share was - and the terminal prognosis.....or so they thought). all bandwagoneers are just looking to cash out...go on beat it. here's your hat, what's your hurry. I am still on a honeymoon with this stock even after 2600%+ growth. Get outta our way Liberty Losers!
    8 Jan 2014, 01:29 AM Reply Like
  • Googer
    , contributor
    Comments (1561) | Send Message
    How can a former CEO of Direct tv be independent? I smell a rat! VOTE (HELL) NO! I think the sub numbers have been intentionally made to look like there slowing and I've been saying it all along. once they changed the way trials are counted and started giving 1 year free trials of course there is going to be a period of time where it appears that subs are slowing. folks we've had record car sales and subs are slowing? used cars with sat radios already in them and subs are slowing? I say the used car market starts producing subs next quarter and when those subs that bought new cars start coming back after their year is up its going to "appear" subs are exploding this is all smoke and mirrors and I hope the SEC is investigating
    8 Jan 2014, 03:00 AM Reply Like
  • njbones
    , contributor
    Comments (27) | Send Message
    Read BM`s article today,if you can.
    8 Jan 2014, 01:01 PM Reply Like
  • cmcliamfinnoliver75
    , contributor
    Comments (23) | Send Message
    9 Jan 2014, 12:12 PM Reply Like
  • Ric
    , contributor
    Comments (42) | Send Message
    When does the special committee have to decide?
    14 Jan 2014, 11:33 AM Reply Like
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