I dont think it will double but I expect to see another 2 bil added, which will keep this from running up too quicklyOriginally Posted by winagain35
SIRIUS XM SATELLITE RADIO FORUM
I dont think it will double but I expect to see another 2 bil added, which will keep this from running up too quickly
Hmmm, I guess we can assume that this is no longer a mere bridge loan... What would be the valuation of SIRI with 100% dilution and no BK?
I feel mathbowl flashbacks coming on...
I see your point about the RS but we have no immediate need to meet NASDAQ listing requirements... lol sorry I am just so against the RS as it would defeat my purpose for being in this stock!
Agreed... BUT - a reverse split would be seen much more favorable as part of some good refinancing news. With an 8billion share float, it could take a while to get over a buck... and it would be better to make it happen now than to be forced into it later.
they cannot due a r/s for the sake of lowering the outstanding share's
reason #1 The vote was to allow them to do a r/s for nasdaq complaince only, not for reducing the outstanding share's, if they did it without holding a new vote they would be in a bit of trouble i think.
reason #2 Mel owns share's in this company too, a r/s split hurts him as much as the rest of us
reason #3 being a little diluted is good for a company yet to break fcf because it makes the losses look less, to me a r/s would come when we break fcf and are over a dollar or so. Of course it would be hard to get a vote for it to pass imo
From Financial Times quote: "The deal offered by Liberty would involve a debt for equity swap".
My question: does "equity" mean shares or does it mean a financial interest in the company?
Are any of us sure that this means shares? I really thing this is more of a "joint venture" kind of thing, perhaps involving shares, but not maybe not completely? I do not know government regulations on this, but I bet it is complex.
Anyone have any ideas or knowledge?
If Liberty were do get shares, I would think it would be with the proviso that they would not sell them for a period of time. Therefore, there would not be any dilution into the marketplace at the current time. Therefore, I would think Sirius XM would wait for the stock price to go up before doing a reverse split. There is no point in doing it now.
I may be mistaken, but I don't believe there were conditions placed upon the reverse split. I know that Mel said that they would only use it in order to maintain nasdaq compliance, but I also don't think he envisioned this much dilution(if that's indeed what's happening). I don't think a reverse split is a bad move here if it's packaged the right way.
With this news and Charles is giving away a Slacker for headline news ?
Someone quoted this from the Wall Street Journal:
Under the proposed agreement, Liberty would invest several hundred million dollars in Sirius XM in two stages and eventually control about half of the company, WSJ sources said.
So, if the above is true, will our shares still exist in six months or so as "SIRI"?
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