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Thread: Liberty's motivation??

  1. #1
    RickF is offline
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    Liberty's motivation??

    Not sure if this has been posted or not - apologies if it was!!



    http://video.aol.ca/video-detail/lib...id=VIDURVNWS03

    from AOL Video Home "Liberty Rescues Sirius..or Did It?"

    Tell me it was NOT the reason for the rescue!!


  2. #2
    Hopeful is offline
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    Is this just bashing??? Or a possible scenario???

    And now back to puking..........



    A contradiction to your AOL Video post!

    http://biz.yahoo.com/paidcontent/090...2_id.html?.v=2

    What Is Liberty's Endgame With Sirius? Finally, Some Elaboration
    Wednesday February 25, 3:37 pm ET
    By Rory Maher

    John Malone is one of the great sharks of the media world, and so when he loaned Sirius XM $530 million earlier this month, no one thought it was some act of charity. But his exact motivations weren't clear. On the earnings call today, Liberty Media's CEO Greg Maffei addressed the question with surprising candor. He said Liberty isn't just in it for the terms on the loan (as sweet as they are for Liberty)—rather, the company thinks that Sirius (NasdaqGS: SIRI - News) and DirecTV (NasdaqGS: DTV - News) can actually benefit each other.

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    —Maffei sees growth potential in Sirius, particularly if it can renegotiate its contracts with the auto companies and content owners at better terms. He noted that the current agreements were inked when XM was competing for the same contracts, so terms were likely worse than they would be today.

    —Maffei also said there were lots of cross-promotional opportunities between Sirius and DirecTV, not necessarily to combine packages, but to promote each other's services to their respective large audiences.

    —As for using the Sirius satellites and repeaters on the ground for sexier services like internet and mobile video, Maffei said he would love to be able to use Sirius technology for such services, but that it was very far down the road and that it may never come to fruition.

    Of course, Maffei was careful to point out if all these plans bomb out, Liberty Media (NasdaqGS: LINTA - News) still has that nice 15 percent return on its loan that it can feast on..
    Last edited by Hopeful; 02-26-2009 at 12:24 AM. Reason: Retracting my "intelligent bashing" statement!!! lol

  3. #3
    RickF is offline
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    Hi Hopeful .... hope your not sugesting that it may be "intelligent bashing" by me?? I just ran across the vid and wanted to let folks know. Some of it makes sense - some I hope makes NO sense!!

    Long Sirius!!!! AND hoping - all apendages crossed!!

  4. #4
    winagain35 is offline
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    He says Sirius only has $78mil COH?
    Not sure where he got that info, but they should have a LOT more than that.
    Lots of assumptions and misinformation in that little piece.

  5. #5
    Hopeful is offline
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    Hey Rick,

    No I was not suggesting that it was intelligent bashing from you! I was referring to the AOL video. It seems like a bash piece with a break down of the numbers and making the pieces of the puzzle fit.

    I could be totally wrong and this info could be possible! I am just being "hopeful" that it's not ahahhaha!

    Nice find Rick!

  6. #6
    Sirius Roadkill is offline
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    Quote Originally Posted by RickF View Post
    Not sure if this has been posted or not - apologies if it was!!



    http://video.aol.ca/video-detail/lib...id=VIDURVNWS03

    from AOL Video Home "Liberty Rescues Sirius..or Did It?"

    Tell me it was NOT the reason for the rescue!!

    Guys . . . the JACKASS in this video is out to lunch. He gets to $78mm cash on hand by subtracting $172mm paid to Ergen from the $250mm injected by Malone. What he fails to do is then add back Cash-on-Hand at the end of Q4 which is at least $360mm and probably closer to $425mm.

    If COH at the end of Q4 was really ZERO, then Mel Karmazin will have some serious explaining to do.

    In reality, total working capital/reserves before escrows should be around $500mm ($78mm from Malone plus say $425mm at the end of Q4)

    Secondly, the JACKASS totally fails to mention the "Superior Proposal" contingency that does not expire until 4-15-09.

    Media Malpractice!

  7. #7
    RickF is offline
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    WHEW!!! Thanks guys!! I was truely hoping that others would look at this as BS!! Can't wait till the 4th 1/4 results are announced!!

  8. #8
    Newman is offline
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    Sirius Roadkill: The Superir Proposal contingency does NOT expire 4/15/09. They simply cannot SOLICIT for a superior proposal until then. After that, they are free to shop. The SEC filing actually does not mention a cut-off date for the contingency.

  9. #9
    Sirius Roadkill is offline
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    Quote Originally Posted by Newman View Post
    Sirius Roadkill: The Superir Proposal contingency does NOT expire 4/15/09. They simply cannot SOLICIT for a superior proposal until then. After that, they are free to shop. The SEC filing actually does not mention a cut-off date for the contingency.

    The result is that Sirius has a period of time during which it can find an alternative transaction. Here the form 8-K states that:

    If, prior to April 15, 2009, we receive an alternative proposal that our Board of Directors concludes in good faith is a Superior Proposal … our Board of Directors may terminate the Investment Agreement in order to transact the Superior Proposal. After April 15, 2009, we may terminate the Investment Agreement if our Board of Directors determines it is in our best interests to do so…

    “Superior Proposal” is defined in the Form 8-K as:

    a bona fide written alternative proposal that our Board of Directors in good faith determines, after consultation with its legal and financial advisors, would, if accepted, be reasonably capable of being consummated, taking into account legal, financial, regulatory, timing and similar aspects of the proposal and the person making the proposal, and would, if consummated, result in a transaction more favorable to our stockholders from a financial point of view than the transaction contemplated by the Investment Agreement.

  10. #10
    Sirius Roadkill is offline
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    Quote Originally Posted by Sirius Roadkill View Post
    The result is that Sirius has a period of time during which it can find an alternative transaction. Here the form 8-K states that:

    If, prior to April 15, 2009, we receive an alternative proposal that our Board of Directors concludes in good faith is a Superior Proposal … our Board of Directors may terminate the Investment Agreement in order to transact the Superior Proposal. After April 15, 2009, we may terminate the Investment Agreement if our Board of Directors determines it is in our best interests to do so…

    “Superior Proposal” is defined in the Form 8-K as:

    a bona fide written alternative proposal that our Board of Directors in good faith determines, after consultation with its legal and financial advisors, would, if accepted, be reasonably capable of being consummated, taking into account legal, financial, regulatory, timing and similar aspects of the proposal and the person making the proposal, and would, if consummated, result in a transaction more favorable to our stockholders from a financial point of view than the transaction contemplated by the Investment Agreement.

    btw, my interpretation is that Sirius XM may ONLY terminate the investment agreement prior to April 15, 2009 if there is a superior proposal, which must be brought forward without solicitation. After April 15, 2009, Sirius XM may terminate the investment agreement for any reason that is in their best interest, including a competing superior offer.

    No?

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