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Thread: Closer to a deal

  1. #1
    sxminvestor is offline

    Closer to a deal

    Sirius XM Radio Inc. has significantly narrowed the divide in talks with satellite mogul Charles Ergen over a deal to save the company from a bankruptcy filing. But the country's sole satellite-radio operator continues to discuss a rival offer from Liberty Media Inc., according to people familiar with the situation.

    While the gap between what Mr. Ergen has proposed and Sirius has asked for is narrow, the two sides haven't reached agreement yet on other, nonfinancial issues, these people said. Mr. Ergen is prepared to let Sirius Chief Executive Mel Karmazin keep his job.

    The battle for Sirius has pitted ...

    **someone please post full WSJ article.

  2. #2
    m4svt is offline
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    Sirius XM Radio Inc. has significantly narrowed the divide in talks with satellite mogul Charles Ergen over a deal to save the company from a bankruptcy filing. But the country's sole satellite-radio operator continues to discuss a rival offer from Liberty Media Inc., according to people familiar with the situation.

    While the gap between what Mr. Ergen has proposed and Sirius has asked for is narrow, the two sides haven't reached agreement yet on other, nonfinancial issues, these people said. Mr. Ergen is prepared to let Sirius Chief Executive Mel Karmazin keep his job.

    The battle for Sirius has pitted Messrs. Ergen and Karmazin and John Malone, the billionaire who controls Liberty, against one another in a high-stakes game of brinksmanship. Known as three of the media world's biggest personalities, the men have played major roles in the evolution of cable and satellite television, have long known each other and often clashed.

    Mr. Ergen, who controls Dish Network Corp. and EchoStar Corp., has offered to inject about $500 million into Sirius and restructure the debt he holds in the company in return for control. The offer is contingent on the successful renegotiation of about $600 million in Sirius bank loans and about $200 million in other debt.

    Under Liberty's proposal, the company wouldn't acquire Sirius outright or seek to pair it with DirectTV Group Inc., the satellite-TV provider Liberty controls. Liberty would make an investment that would enable Sirius to meet its credit obligations in return for a sizable stake, one person close to the situation said. Neither offer involves buying out Sirius's equity holders.

    In an apparent effort to extract further concessions, Mr. Karmazin looked set to put off a final decision until the weekend. Sirius has until Tuesday to repay $175 million in bonds held by Mr. Ergen. If it fails to cut a deal with him or raise the money elsewhere, Sirius will be forced to file for bankruptcy, according to people familiar with the matter.

    Sirius is buckling under a $3.25 billion debt load and has been unable to borrow more money in the credit markets or from banks. Even as Sirius has tried to play its suitors against each another, it has suggested privately to investors that bankruptcy might be preferable.

    Such talk has battered Sirius's stock in recent days. Shares of Sirius, which has lost nearly all of its market value since July, rose two cents, or 35%, to seven cents in 4 p.m. Nasdaq Stock Market composite trading Thursday.

    Most observers doubt that Sirius will follow through with its threat to seek bankruptcy protection. Such a step would wipe out its equity holders and likely leave many of its creditors, including Mr. Ergen, with nothing.

    In one indication that it won't pursue a bankruptcy filing, Sirius has approached holders of about $200 million in bonds maturing in December about converting their paper into more senior debt and equity. Such a step would be pointless if the company expected to go under.

  3. #3
    trippingthespeculatingpos is offline
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    jesusu christ i knew news would come out roundmidnight but damn this is good news, hip hip hooray hip hip hooray

  4. #4
    Seamless82 is offline
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    the street I believe said that neither Ergen of Direct TV will buyout shareholders.... ouch. sorry guys. It's been a fun and painful ride

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    trippingthespeculatingpos is offline
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    you dont really get it do you seamless?

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    trippingthespeculatingpos is offline
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    Most observers doubt that Sirius will follow through with its threat to seek bankruptcy protection. Such a step would wipe out its equity holders and likely leave many of its creditors, including Mr. Ergen, with nothing.

    In one indication that it won't pursue a bankruptcy filing, Sirius has approached holders of about $200 million in bonds maturing in December about converting their paper into more senior debt and equity. Such a step would be pointless if the company expected to go under.


    what does that tell you? dont forget the wsj is the one who broke the bk news in the first place, so he doesnt buy us out, id rather not be bought out, i want in for the growth. This thing is going to be a cash cow.

  7. #7
    Seamless82 is offline
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    If this deal is done outside of BK, I believe that the shareholders will not be wiped out. I would guess that Sirius would use the a portion of their authorized shares to give Dish, Direct TV.... OR both a stake in the company. All this for helping sirius to restructure debt.

    The bidding war that may ensue, in my humble opinion, would be over which satellite provider, dish or direct, get the bigger stake in Sirius.

    I do not believe that dish or direct could have "controlling" interest in Sirius, due to FCC regulation (mere speculation). It would seem reasonable.

    For Mel, why would he want to merely give one or the other a large stake of the pie. Why not give each a smaller portion of the pie? Less leverage for each company. Sirius still controls. But there would be a huge opportunity for Sirius to exchange it's content on, get this, both Direct Tv and DISH. This would give Sirius a much larger base of listeners, and it would reduce programming costs for each sat-tv provider.

    I get a lot... Mel is media mogul, and he isn't giving away his crown jewel, IMHO!!!!

  8. #8
    imromo24 is offline
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    Quote Originally Posted by m4svt View Post
    ...narrowed the divide in talks with satellite mogul Charles Ergen over a deal to save the company from a bankruptcy filing.

    ....continues to discuss a rival offer from Liberty Media Inc., according to people familiar with the situation.

    ...Mr. Ergen is prepared to let Sirius Chief Executive Mel Karmazin keep his job.

    ....contingent on the successful renegotiation of about $600 million in Sirius bank loans and about $200 million in other debt.

    ...Liberty would make an investment that would enable Sirius to meet its credit obligations in return for a sizable stake, one person close to the situation said. Neither offer involves buying out Sirius's equity holders.

    In an apparent effort to extract further concessions, Mr. Karmazin looked set to put off a final decision until the weekend.

    ....it has suggested privately to investors that bankruptcy might be preferable. (It did? When?)


    Most observers doubt that Sirius will follow through with its threat to seek bankruptcy protection.

    In one indication that it won't pursue a bankruptcy filing, Sirius has approached holders of about $200 million in bonds maturing in December about converting their paper into more senior debt and equity.
    Sounds like WSJ has conceded the battle to me, it was apparent that they were hoping for the worst for us, but are expecting much better. There was nothing about "wiping out shareholders" this time. Just not buying shareholders out, QUESTION: Do we need them to buy us out? I don't know but all we need is the debt and maybe give a little control over in exchange. Leave us to be?

  9. #9
    sxminvestor is offline
    Wistron receives payments from Sirius XM
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    MOPS, February 13; Steve Shen, DIGITIMES [Friday 13 February 2009]


    Taiwan-based network equipment maker Wistron NeWeb received account receivables of NT$130 million (US$3.82 million) from the US-based Sirius XM Radio on February 13, according to a company filing with the Taiwan Stock Exchange (TSE).

    This would have seemed to have been much, much needed cash at this time if they were as low as many think, so again a better sign that they are still paying out these kind of $'s instead of conserving it in the short-term.

  10. #10
    Hopeful is offline
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    Quote Originally Posted by sxminvestor View Post
    Wistron receives payments from Sirius XM
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    MOPS, February 13; Steve Shen, DIGITIMES [Friday 13 February 2009]


    Taiwan-based network equipment maker Wistron NeWeb received account receivables of NT$130 million (US$3.82 million) from the US-based Sirius XM Radio on February 13, according to a company filing with the Taiwan Stock Exchange (TSE).

    This would have seemed to have been much, much needed cash at this time if they were as low as many think, so again a better sign that they are still paying out these kind of $'s instead of conserving it in the short-term.


    This sounds like really good news! However where did you get this information from???

    Also why are they paying some company in Taiwan???

    Does anyone else see this as a positive sign???

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