Malone's 12mm% return
MODERATOR: So Mel was here this morning and he told me to ask you this question, a question I asked him. Uhh, you’ve got a 40% stake in umm in Sirius.
MODERATOR: And its obviously worked out very well for you, we calculated like a 12 million % return, um, but in any case if you increase your stake above 50 . . .
MALONE: Well I think the return’s gotta be infinite doesn’t it?
MALONE: I mean since we got all our money back and we still own it.
MODERATOR: Right, so its been a great investment
MODERATOR: However we calculate. And um
MALONE: Thank you Mel (mock shouting)
MODERATOR: And uh, . . . he’s done a great job . . . but if you increase your stake above 50% that would jeopardize their 8 Billion in NOL’s
MALONE: Well we can't contractually . . . at the present time we’re barred from going into hard control of it for some period of time, I don’t remember what it is, but its all been disclosed publicly, um, so for some period of time, ya know, we have to be happy to be less than majority owner of it. Uh, as our ownership stake changes it can impact, uh, the usefulness of their NOL and so that has to, um, be watched.
MODERATOR: Right, well Mel said it was March 2012 so . . . but in any case
MALONE: Well March 2012 I believe is the last point at which we have any restrictions on our behavior.
AQ: John assuming the LINTA spin, hard spin, goes according to plan what happens to the remaining trackers and on a sort of separate but related issue, in the case of Sirius, are there any advantages in doing a spin of your holdings?
MALONE: Well certainly, Iíll answer the second question first, we could follow the pattern of Direct TV with Sirius in which, ya know, we could presumably spin it along with a 5 year trade or business to meet the rules, put enough juice in it such that it would constitute more than 50% of the vote and value of the resulting roll up and do it in accordance with a prearranged deal very similar to Direct TV. Thatís a possibility. Thatís a possibility that comes up every time we look at structural options. We obviously have not made any decisions on that. We still think Sirius is cheap. We probably would like to own more of it. So I think weíre still in the create value rather than distribute value mode with respect to that particular asset.