SIRI Intraday Thread: Thursday April 30

[john]

Based on a thread I believe from yesterday by Homer, regarding the motives behind the poison pill, I posited this to Homer... anyone else, please feel free to put forth your interpretations of the recent news and how it impacts us 'low level' shareholders...

been awhile since I posted... hope all are well:

So, Homer, based on your opinions and interpretations, the likelihood is that Liberty is buying SXM for the purposes of an incredible tax break. If that is the case, and in 3 years from now they do the following, please describe what it might possibly mean from a shareholders perspective:

1. Liberty goes over 50% ownership in SXM (but not 100%).

2. Liberty buys 100% of SXM (which I think would mean SXM went private, right?).

Your reply to these questions is greatly appreciated; thanks for your time on them.

KR

kingreecan, I believe Liberty will own SIRIXM in 3 or 4 years. One only needs to see that that poison pill does not exclude Liberty, as a matter of fact they were the only ones excluded from this thing. From that you could see that they have full intentions on buying more shares, they are also not that far from owning 50% of the company and once that happens they can basically do whatever they want. Sure there could be massive law suits. But really once they get to 50% they will have all the voting power they need to take it private or do whatever they want. I can tell you, I dont like that Liberty was excluded from this thing one bit. Weather they do what I said they could or not it just puts another problem into the mix (someone else we have to trust to do the right thing for the rest of the shareholders).



In the end there is good and there is bad. The good is that the PPS will go up alot from here. The bad is we will most likely not be included in the real potential of this company. So if you dont mind getting 2 dollars in the end for your shares then it is good for you. If you invested in this company because you saw the potential in the size of that spectrum and the potential of the company to be a media giant. Then you will not be happy that you got cut short just as the company starts to show what it can do.

[kingreecan]

I guess my next question, John, is:

When a company 'goes private', what does that mean for existing shareholders? Is there a buyout price that if you don't take you essentially lose your shares/investment? Is it automatically taken or do you have to elect to accept it?

What advantages are there to taken SXM private from Liberty's standpoint? If they have controlling shares and board, they can do what they want anyway (essentially). I guess 'going private' essentially means they don't have to share in the gains made by the company...?

What if SXM is folded into Liberty itself (ie: goes under a new ticker/name) but stays a public entity? Do current SXM shareholders get to keep shares under a new company so long as it's publicly traded?

Thanks for your comments on this.

KR

[relmor2003]

kingreecan, I believe Liberty will own SIRIXM in 3 or 4 years. One only needs to see that that poison pill does not exclude Liberty, as a matter of fact they were the only ones excluded from this thing. From that you could see that they have full intentions on buying more shares, they are also not that far from owning 50% of the company and once that happens they can basically do whatever they want. Sure there could be massive law suits. But really once they get to 50% they will have all the voting power they need to take it private or do whatever they want. I can tell you, I dont like that Liberty was excluded from this thing one bit. Weather they do what I said they could or not it just puts another problem into the mix (someone else we have to trust to do the right thing for the rest of the shareholders).



In the end there is good and there is bad. The good is that the PPS will go up alot from here. The bad is we will most likely not be included in the real potential of this company. So if you dont mind getting 2 dollars in the end for your shares then it is good for you. If you invested in this company because you saw the potential in the size of that spectrum and the potential of the company to be a media giant. Then you will not be happy that you got cut short just as the company starts to show what it can do.

Best , most concise post on this subject Ive read. I think this is EXACTLY what will happen, and it definately puts a maximum price tag on our shares. If it was $10(very very down the line, huge optomism), its now like John said around $2-$3 dollars. Long time bagholders need to buy shares at these levels soon, or they will never break even. Could be nice lift just from these people realizing the only way out now is to buy more shares.

[trippingthespeculatingpos]

2-3 dollars? i think it would at least be closer to five

[imromo24]

so isn't there a guaranteed buyer of our shares now? hence the reason to protect the price from liberty having to pay too much because after MAy 11 no one will be able to "stock" up...no pun intended.

no one can buy over 4.9%, which means "no free rides" to people wanting to get over that to drive the price up for liberty to take full control.

[JohnnyIrishXM]

so isn't there a guaranteed buyer of our shares now? hence the reason to protect the price from liberty having to pay too much because after MAy 11 no one will be able to "stock" up...no pun intended.

no one can buy over 4.9%, which means "no free rides" to people wanting to get over that to drive the price up for liberty to take full control.

the only reason to aquire 5% of any stock is to have a say in the company or to start a take over..most mutual funds and institutions stay under 5% because you have to register with the sec when you do and it becomes public knowledge then,which they don't like to do until they have to show it in quarterly reports..