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  1. FloridaCaveDiver is offline
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    05-04-2009, 09:47 AM #1

    DirecTV to Merge With Liberty Entertainment - Good for SIRI ?

    I see easily where this can go.....

    http://www.thestreet.com/_yahoo/stor...FREE&cm_ite=NA

  2. relmor2003 is offline
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    05-04-2009, 09:58 AM #2
    Ill put my vote in for good for SirusXM. Proves these are just assets by Malone. He doesnt "love" any of them. Its all business. He wants to make money. Hes getting a bit up their in age. Interesting pieces falling in place.
    He is structuring something different to obviously allow something to change. Has to be something going on.

  3. kingreecan is offline
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    05-04-2009, 10:18 AM #3

    where do you see this going?

    Quote Originally Posted by FloridaCaveDiver View Post
    I see easily where this can go.....

    http://www.thestreet.com/_yahoo/stor...FREE&cm_ite=NA
    I am not quite sure what to make of this move... what is your opinion of where this takes SXM or Liberty for that matter?

  4. kingreecan is offline
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    05-04-2009, 10:25 AM #4

    Relmor...

    Quote Originally Posted by relmor2003 View Post
    Ill put my vote in for good for SirusXM. Proves these are just assets by Malone. He doesnt "love" any of them. Its all business. He wants to make money. Hes getting a bit up their in age. Interesting pieces falling in place.
    He is structuring something different to obviously allow something to change. Has to be something going on.
    As I asked of cavediver, why do you think this is good for SXM. I understand the business side of your comment but what of your comment on, 'he is structuring something different to obviously allow something to change" comment mean from your perspective? As well as the 'interesting pieces falling in to place' comment.

    Thanks!

  5. homer985 is offline
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    05-04-2009, 12:55 PM #5
    On the surface, the split off is irrelevant to Sirius.

    This is a planned split-off of Liberty Entertainment from Liberty Media. It has been in the works for 6 months to a year. The details of which have been slowly coming out over this time.

    In December it was announced that Liberty's holdings in DTV would be included in the split-off company, along with several other company holdings that Liberty Media held.

    What came out today is the actual details of the capital structure of the new company and what the shareholders will get. But there is no surprises in there... other than that they're not going to call it Liberty Entertainment afterall -- instead will call it, The DirecTV Group.

    The Sirius debt and equity holdings held by Liberty are held by the Liberty Radio subsidiary. This subsidiary remains under Liberty Media and wasnt a part of this split-off. So if anything, DirecTV and Sirius are even further apart than they were before... at least on paper as corporations.

    I noted that the actual stake in DirecTV will increase from 48% to 54%, with this deal... with that stake being held by the new company.

    Malone himself will own 24% of the new company... he got that through his ownership of the Liberty Entertainment tracking stock equity that he held.

    I wouldn't see too much into it, frankly.


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  6. relmor2003 is offline
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    05-04-2009, 01:20 PM #6
    Quote Originally Posted by kingreecan View Post
    As I asked of cavediver, why do you think this is good for SXM. I understand the business side of your comment but what of your comment on, 'he is structuring something different to obviously allow something to change" comment mean from your perspective? As well as the 'interesting pieces falling in to place' comment.

    Thanks!
    I see how he runs his companies. How he positions his acquisitions. If we think SiriusXM is any different, we see that DirectTV is his baby, and he doesnt even own all of that yet. SiriusXM is an asset, one of many of Liberty. A strong Liberty is good for SiriusXM as well. Nothing in the filing that affects Sirius, so its more of general specualtion if anything. Just because Sirius can buy them out and take them private, doesnt mean they will. They havent with DirecTV. No presidence. If they are treating SiriusXM as just another asset, then it reasons that they dont want to sell it off for pennies, or just wanted its assets, like they claimed falsely Ergen was simply after.. ETc... No they wanted to own it, to grow it, and make is work.