cos1000

Sirius XM Waves Goodbye to S&P CreditWatch

pj568, you are talking about Sirus' debt due in Aug. 1, 2013, for 500 Mil, unsecured by any of their assets right? The 16% debt was for XM, which is now owned by Sirius as a subsidiary, and stands alone with its debt and operations.

I am surprised that there haven't been conversations on this board or elsewhere that discusses the possibility of the XM or XM Holdings as a subsidiary "FAILING". What a unique way to eliminate your competition. Believe me before Mel screws stockholders of Sirius and now XM again, it is not completely out of the question to let XM fail. Just pull the plug. I know I'm being premature and drastic here, but lets look at all of the possibilities when it comes to true synergies. Operate one network of satellites and broadcast all of the best talent and content from both companies. Read the risks to doing business section of the 10Q very, very closely when it comes to XM's debt exposure and it operating entirely as a Self Supporting Subsidiary of Sirius XM Radio. The shares just lent for XM to get financing of its converts at 16% may be the last time the parent company jeopartizes itself to finance XM's debt. As a subsidiary, that is their right.

Your reference to financing in 2005, when they were generating only 65 Mil in revenue is laughable. This company is generating 2.4 Bil in revenue and just bought, oh that's right, merged with their competition giving them the rights to all assets, technology, subscriber base, and Brand loyalty. Under one license they own all of the Spectrum valued roughly now at 2.6 Bil alone (Estimated Spectrum Enterprise value not Goodwill). Interoperable radios complete the process. They will have ownership of all content. You can't see how they can get better financing because you haven't looked very close.