Siri Stock Thread March 2011

[Atypical]

By Antony Bruno, Denver - Billboard

On the eve of the mobile phone industry's annual CTIA Wireless conference, AT&T dropped the bombshell news that it is acquiring rival T-Mobile for $39 billion. The move has all manner of repercussions for the wireless market, should it pass regulatory review. Assuming it does, here's what it means for the music industry:

-- Customers:
At the end of 2010 AT&T and T-Mobile combined had 130 million and Verizon had 94 million. The deal would make AT&T again the No. 1 mobile operator in the country. And by adding T-Mobile's 33 million users to its base, that's a lot more potential iPhone buyers. And a combined AT&T/T-Mobile would make it the only GSM carrier in the country (Verizon and others use CDMA) and the only choice for subscribers who want phones that work in Europe.

-- Spectrum:
Along with T-Mobile's customers, AT&T would get its spectrum-assets that if used wisely could mean better coverage and capacity for high-bandwidth multimedia services like streaming music and video, particularly in rural areas. It also means AT&T would be able to more quickly roll out its next-generation LTE network faster, which would improve multimedia services dramatically. This is something to watch closely because the FCC could deny AT&T access to T-Mobile's spectrum as a condition to the Justice Department's approval of the deal. Such a move could effectively kill the deal, as acquisition of spectrum was one of the top reasons AT&T gave as rationale for the move.

--Competition:
The deal pits AT&T against Verizon as the two major nationwide mobile operators, with Sprint a distant third. Combined, Verizon and AT&T (after the merger) would control just over 70% of U.S. mobile users. The immediate consumer concern then revolves around pricing. If either starts to charge higher for data and/or media services, that could affect adoption of the kinds of free music apps that have sparked the resurgence of mobile music. It also means labels and publishers have fewer partners to play against each other when striking direct mobile music licensing deals with carriers. And if the rivals start exerting more control over what apps become available from smartphones on their network, the entire app ecosystem could be in jeopardy.

--Sprint:
Sprint had 50 million subscribers at the end of last year. The now-even-more-distant third place mobile operator needs to make a move of its own to stay competitive with these new behemoths. It either buys up even smaller operators like MetroPCS, Cricket Wireless, U.S. Cellular and so on, or it goes up for sale itself. Sprint was the first mobile operator to launch a full-song music download service, so where it goes is of interest to music labels. Verizon would be one obvious choice of buyer (their networks use the same technology), but there are other non obvious choices. Comcast is one, adding a wireless component to its cable business.

-- Regulatory Backbone:
Consumer groups and Net Neutrality watchdogs are up in arms over this proposed deal. But few think the Justice Department will have the backbone to block it, afraid of being seen as anti-business or anti-jobs. As the music industry looks to another potential big-league merger of its own (perhaps WMG/EMI?), the outcome of this deal could provide some interesting tea leaf reading.

http://www.google.com/url?sa=t&sourc...83vt351GfA-g7w

And an article from The Fool.

http://www.google.com/url?sa=t&sourc...81g4qhWfCik_kg

[john163888]

But I pay attention to guys like Mel and Pittman not because they are just CEOs or COO's or presidents of companies. I pay attention because Mel has run the best performing radio companies in terms of EBITDA in history. He is in the Radio Hall of Fame and has been performing for more than 30 years.

you are a good man you and a few others who did not do a total 180 and get all negitive on this company. I have to say that as person that has always wanted to give Mell the benefit of the dought. I was bothered to see so many do a 180 on him. It was like he could not do enough. Look he takes a pat cut coming from Viacom, he gets the merger through the DOJ and FCC after most said it could not be done (and lets remember with such minimal concession). He buys a shit load of stock (at a cost of more then he has ever earned at the company). How many other people can say they reinvested every dime they ever made from a company back into it.

[MUSCLE13]

you are a good man you and a few others who did not do a total 180 and get all negitive on this company. I have to say that as person that has always wanted to give Mell the benefit of the dought. I was bothered to see so many do a 180 on him. It was like he could not do enough. Look he takes a pat cut coming from Viacom, he gets the merger through the DOJ and FCC after most said it could not be done (and lets remember with such minimal concession). He buys a shit load of stock (at a cost of more then he has ever earned at the company). How many other people can say they reinvested every dime they ever made from a company back into it.

Thanks! It was real tough for awhile but the near bankruptcy and the Lehman Bros debacle actually created the single best buying opportunity for radio investors since the Infinity ipo in the early 90s. Possibly the best ever. For those that saw the EBITDA coming it was a slam dunk after that really close call. I was so happy that I had the cash on the sidelines ready to go in real late in 08. I remember talking with friends telling them how the richest people in the world invested during the 1987 crash. I was just a kid without a lot to put in back in the 80s but I wasn't about to let this one go by without taking my shot. Dad taught me well. Right now it feels like Infinity all over again. It's becoming a free cash flow machine.

[Havakasha]

The solution is "C.) Pissing Up a Rope" . . . Tyler has never used this phrase while acting in an official capacity as an Internet Radio Blogger.

Considering Tyler's proclivity toward employing scatological references whenever possible, I could see how many of you were led astray on this one and chose "E.) Separating Down to a Gnat's Ass" because it sort of doesn't involve the potential for expulsion of a bodily fluid . . . but he did in fact use this phrase.

Now I know "airman" will be along shortly requesting that I provide the citation and context for that quote, so here it is, in advance:

It occurred on March 9, 2011 during an episode of Sirius Buzz Radio.

http://www.blogtalkradio.com/playgro...ble-march-2011

I suggest you zoom ahead to the 26:50 mark . . . that is where muscle13 begins his blistering cross-examination of Tyler Savery

Savery was in the witness box, looking rather pasty and wearing a crumpled purple shirt with an open, unironed, collar and kind of smirking at the jury (pictured below). It was steamy in the courtroom and little beads of sweat had already begun to form around Savery's temples as muscle13 stood to address the court:

muscle: good evening your honor, muscle13 on behalf of Sirius XM
judge: thank you muscle, you may proceed . . but keep it tight
muscle: thank you your honor. This shouldn’t take long

In contrast to Savery, muscle was nicely tanned, looking as fresh as a flower . . cool as a cucumber, smartly dressed in a crisp white shirt, freshly pressed-collar, red power tie and dark navy suit . . . as he began his cross, muscle paced back and forth like a cheetah eyeing its prey, firing off rapid fire questions

muscle: name 1 profitable internet radio company in 17 years . . . 17 years . . . name me just ONE!
savery: (inaudible)
muscle: what other radio companies besides Sirius XM do you follow
savery: (silence)
muscle: name me 1 other radio company you have EVER followed. Name me ONE!
savery: (sweating more profusely now) I'll name three . . . ABC, CBS & NBC
(jurors roll eyes . . audience erupts in laughter . . . judge threatens to clear courtroom)

sensing the time is right, muscle moves in for the kill. stepping up to the witness box and resting 1 foot on the small ledge, muscle leans in closely (getting right up in Savery's grill) and shouts

muscle: TELL ME THE EBITDA MARGIN!
savery: (silence)
muscle: TELL ME CLEAR CHANNEL'S EBITDA MARGIN ON THUMBPLAY!
savery: (mopping brow - silence)
muscle: YOU STILL HAVEN'T ANSWERED MY QUESTION! TELL ME THE EBITDA MARGIN ON INTERNET RADIO

and this is where Savery cracks, screaming . . .

savery: I DON'T F*CKING CARE IF CLEAR CHANNEL IS PROFITABLE. EVERYONE WANTS TO SEPARATE THIS THING DOWN TO THE GNAT'S ASS

seeing he had broken the witness . . .

muscle: I have nothing further your honor (cooly, calmly and deliberately walking back to his seat)

and there you have it airman . . .

Hilarious stuff. Keep it coming! I see a comic book on the way.

[Sirius Roadkill]

Breaking News - Tuesday, March 22, 2011 - 1:28 PM EST

The jurors in the trial of Internet Radio Blogger, Tyler Savery, now in their second full day of deliberations, have requested a read-back of a portion of the trial transcript. The request from the jury reportedly centers around one of the trial exhibits (Exhibit A-1 �Toyota and Pandora Pairing Gives Insight on How Pandora Will Make Money � Will Sirius XM Emulate This Strategy?�) and the corresponding testimony. Savery's lawyers did not look happy as they left the courthouse. More details as they become available . . . . .

[SiriusBuzz]

Howard Stern is suing Sirius XM... not good.

[Sirius Roadkill]

Howard Stern is suing Sirius XM... not good.

for once we are in agreement!

[Sirius Roadkill]

Radio "shock jock" Howard Stern and his agent are suing Sirius XM Radio Inc. alleging that his client was promised performance-based stock awards the satellite radio company refused to pay.

"Stern enabled Sirius to surpass its internal subscriber targets by more than 2 million subscribers in 2006 and in 2007," the suit filed in New York State Supreme Court alleges.

http://online.wsj.com/article/SB1000...googlenews_wsj

oh-boy . . . this is gonna put the Savery trial on the back-burner for a while . . .

[Sirius Roadkill]

well . . . I'm having a really hard time biting my tongue on this one but I am going to give myself some time to cool down before I post any comments on this . . . I just hope Mel has retained David Boies . . .

[Sirius Roadkill]

Apple is reportedly pressuring the major labels to have all of the music licenses in place for the re-launch of their MobileMe service in April. This would allow users to store their music online and access it from any mobile device.

Wayne Rosso at The Music Void reports that Apple has sealed its deal with Warner Music Group and is using it as leverage to get the others onboard.

UMG and EMI are more and less pushovers in the deal according to Rosso's sources, but "Apple may actually get some pushback from Sony," he says.

However, most record executives aren't willing to push back against with Apple, as they don't want to tampler in any way with about 70% of their digital revenue.

"The reality is that, no matter what Jon Bon Jovi says, the record industry is Steve Jobs' bitch," Rosso writes. "Jobs knows it and so does everyone else."

If Apple launches their cloud music service in April, it may cost $20 annually.

Expect the labels to clear the way for a Google service soon thereafter. That way, Apple won't gain another lead. This early launch places pressure on Slacker to get their on-demand service to market and for Spotify to finalize their US deals.

http://www.hypebot.com/hypebot/2011/...-in-april.html