A mere mention of something/someone by itself doesn't normally elicit an emotional response unless there is someting more to the story. As long as it's respectful and objective, then folks should be able to post, as has been done over the several years I've been here, stuff from other sources without inciting the emotional outbursts that have plagued other sites.
Charles has done a great job of maintaining the civility of this site, and I hope it continues to be a place we can share diverse insights and opinions without fear of attack, retribution or reprisal. Just my two cents.
Its information, I agree it is not very useful (this article anyway) but at some point it may be useful info and a source of news that can and should be noted/quoted from time to time. Many of us are quite aware of the "issues" over "there" and take it all with a grain of salt.
Last edited by denco1; 01-18-2013 at 01:20 PM.
I had to LOL at "WorldSpace Inc WRSPQ:OTC Pink" moves today. BJM must be feeling powerful today. Goofy article if you ask me. No need to read it. I wonder what his sleep schedule is; given that it shows it was written around 5am this morning. If he had a good nights sleep and woke up early to write that article - it's sad.
Can someone please explain for me: Now that Liberty owns majority stake in SIRI, what is the implication on we share holders of SIRI if they should decide to divest us into their various other entities? Does that imply that we receive value for our shares or does our equity simply vanish? It would appear that one way to stay invested in SIRI (or with our disolved shares if that is what they become) is to place our money in Liberty (someone said that would now be LMCAD) or others of their holdings such as XM Canada, etc.............. I do not see mass exidus to the door yet, so I presume there remains some incentive to retain holdings in SIRI............. I suppose that once the Institutions decide to get out it'll be too late to escape with much in hand. Is that a good assumption?
There is no guarantee about how Liberty may act, but we do know that Liberty has stated that it wants to get back the $1.7 billion it invested into buying common shares to go above 50%. Liberty will get about $1 billion in the already announced share buy-back of $2 billion. That means that Liberty will still have about $700 million in high basis shares that it will want to extract. That means that another buyback of about $1.4 billion will need to happen. That could be 18 months to 2 years away.
After Liberty extracts that money it will likely want to do a Reverse Morris Trust (RMT). This gives liberty a tax friendly way to realize the huge gains on the original 40% that it got for a meager $12,500. Right now those gains are about $7 billion.
In order to do an RMT Liberty will need to merge a bigger company into the smaller SIRI. With the Liberty stake over 50% this can happen. In an RMT the Liberty shareholders would get shares of SIRI and the company would once again be a company without a major shareholder.
My opinion is that Liberty will keep SIRI levered (in debt) at about 4 to 1 of EBITDA, having SIRI borrow money if necessary to buy back shares.