Comments on: GM Restructuring Beneficial To Sirius XM

By: I'm Not Jim Cramer

I'm Not Jim Cramer — Wed, 01 Apr 2009 19:50:44 +0000

Well, so this where all my old friends from Seeking Alpha wound up! Cos, thanks for the invite to come over. I’ll try to live up to your expectations of me.

By: Socalrunningfool

Socalrunningfool — Wed, 01 Apr 2009 05:49:52 +0000

Hey Vapor. Back in. Felt sure you needed a good laugh. later.

By: Steve

Steve — Wed, 01 Apr 2009 02:24:45 +0000

I was wondering the same thing

By: hchow12345

hchow12345 — Tue, 31 Mar 2009 22:28:15 +0000

Hey Brandon,

WHAT HAPPENED TO YOUR NICEMAC ARTICLE YOU POSTED YESTERDAY?

DID SIRI OR NICEMAC MAKE YOU TAKE IT DOWN?

THANKS FOR THE GREAT ARTICLE!!!

By: leviramsey

leviramsey — Tue, 31 Mar 2009 03:47:05 +0000

The other thing to consider is that a bankruptcy for GM likely voids the distribution agreement. As you note, that removes some number (though not likely high, given GM’s declining market share) of gross adds, but it also voids GM’s revenue share on the radios that have gone self-paying.

XM never confirmed nor denied that the revshare on a GM self-pay sub amounts to $5 a month, but that’s a reasonable guess that I’ve seen from a number of analysts over the years (it is known that the actual rate ramps up based on the total number of installs and may or may not be tied to the original $9.99/month XM rate). If it’s $5 a month in revshare, then (with somewhere around 3 million self-paying radios in GM vehicles) being freed from having to pay it would save Sirius XM from paying out $180 million a year in revshare, which will basically flow straight to the bottom line.

By: shark

shark — Mon, 30 Mar 2009 20:51:18 +0000

In all likelihood, GM would assume the XM contract in any bankruptcy as they would not likely be able to obtain a better one under current negotiations.
The benefit to Sirius-XM, however, is not from contract re-negotiations, but as Brandon suggests from the fact that auto customers will go to GM’s competitors who have contracts more favorable to Siri-XM….

By: Neal Barkett

Neal Barkett — Mon, 30 Mar 2009 20:17:08 +0000

Also interesting to look back & see how the Bush admin.in its early years worked w/ the American auto industry to decrease cafe standards and to also offer tax incentives for those wanting to buy SUV’s & Trucks. Then Pres. Bush had the gall to announce a few years ago that we were………(ready for this?) “ADDICTED TO OIL”!!! Becareful what you wish for,you might just get it. Well they got it and we get the tab to fix it! We need a real 3rd political party. Let’s call it the Common Sense Party.

By: spillit

spillit — Mon, 30 Mar 2009 17:56:16 +0000

the point is, we are not assured the new contract…or any contract…will be renegotiated or show increased favorability to SiriusXM.

By: Brandon Matthews

Brandon Matthews — Mon, 30 Mar 2009 17:37:19 +0000

So you are suggesting that the administration would support the pirating of music?

By: spillit

spillit — Mon, 30 Mar 2009 16:32:25 +0000

how does this help? the car companies get to renegotiate terms and could ask for HIGHER returns. There are too many in dash choices biting at the bit to get into cars. Obama and his hoods want to make internet widely accessible so they could just as easily ask the auto industry to make sure internet radio is installed in all cars.