Sirius XM is Playing a Dangerous Game
The New York Times is reporting that Sirius XM is preparing to file bankruptcy under chapter 11 and my initial reaction was one of absolute and total deflation and disbelief. I find it sickening that a company with such a growing stream of revenue could just decide to ignore its obligations and in one fell swoop destroy investors in its common stock and bonds as well. Even with sufficient cash on hand, the company it would seem, would be willing to sell out its investors for the sake of getting a free ride on the backs of those who saved and invested in its future.
The New York Times article goes on to speculate that the filing itself may be nothing more than a ploy to force Echostar CEO Charles Ergen into a potential partnership deal. I find it no less despicable that Sirius XM management would risk the savings of thousands of its investors, even if such considerations are in fact the company’s motives.
I have to concede, having followed Sirius since 2003, that the potential motive of forcing Mr. Ergen to make an offer seems reasonable. For as long as I can recall, Sirius has never leaked so much as a subscriber figure. They just do not offer any guidance in advance. The only exception I can recall was the merger rumor with XM, which I attributed to a leak on XM’s part to increase the pending offer.
In this case, Sirius provided the New York Times with a substantial news leak. In doing this, it has rendered its bonds including those acquired by Mr. Ergen worthless. Mr. Ergen now stands to lose hundreds of millions of dollars if he does not act. Sirius XM is playing a dangerous game of chess with a grandmaster of the game, and doing so at the risk of its private investors.
Fat lady isn’t getting her channel yet.
Sirius XM Radio in talks with Liberty Media: report
By John Letzing
Last update: 7:48 p.m. EST Feb. 11, 2009
What a play that would be if Direc TV sticks it to Dish again… Thanks King for the update just read the story… fingers crossed. You guys have kept my spirit up with your posts… thank you~!!!
Got my front row seat with my homies.
SRK.Vapor.Cos1000.Dread.GIS.Charles.Tyler.SXM.HOPE.SHARK ET AL.
Bring It On. I’m Fit. Fired friggen Up. And Ready To Rumble.
Pick you weapon and location. Name your time.
GIS. Great to see you on the board. I’m praying for you, as I do all of us, especially those that bought premerger.
C’mon LIBERTY MEDIA. The friggen Dish competition. DTV. Stick your nose in this thing and make us a BIG offer.
The Buzz Homies Are In The House. Someone please break out a can of Whoopasssss!!!!!!
Hey Socal . . . I feel like I’m on that last turn of the 440 . . . rigormortis has set in and I’m just trying to get to the finish line on fumes
Who needs Disney . . . we are on the mother of all Space Mountain right now
Time for some Top Raman soup
LOL. SRK. You broke out that Raman line. My daughter loves that stuff. Beef is her all timer.
I was contemplating about a twelve pack…….
In this case, lol, we are trying to get to the finish line with a decimal point to the right of the first digit.
You know SRK. This stock is a different investment, regardless of what others say. It’s one bought from passion for the product. For the “idea” that it can happen. It’s why their are forums like the Buzz etc. Why people like Charles and Tyler invest their own time and money into these things. Cause they have passion for it. It’s a community. A fraternity. And those that invested have entrusted this passion and community in the hands of one “Mel Karmazin”. And that’s as damn honest and basic and it can get. And in reality, that’s as damn beautiful as it should be.
Like hitting the finish line of a PR when YOU were out there busting your butt on Christmas and New Years day while most were hanging by the heater gaining another ten.
Hi SoCal..keep smiling it gets better soon!!!
Keep hope alive!!!!
Thanks man. Need another boondoggle to your State.
I sold out and bought MTL !!
Whatever these two titans of the industry do, would probably be good for the industry as a whole and likely way down the line…………someday………………….
However in the here and now, and especially in the current economic down turn where we all are suffering, it would be powerfully unforgivable to destroy the common shareholders who have stuck by these two SATRADs through thick and thin, just to get something ‘on the cheap’.
Particularly when, they have so much already, and, the promise of this business, will give them so much more, one day. We invested for this as well, and to cheat us now embodies the essence of why we are all in this economic mess in the first place!!
These two titans (Karmazin, Ergen) have an obligation not only to the Satellite industry, but to the business nation at large to begin to try righting wrongs………………………and not perpetuate corporate malfeasances.
Amen!
Nuff Said ?
I’m sick to my stomach how recently just how many mortal men in such high places in this country seem to have sold their souls for profit at the expense of all of us hard working americans in this country. We get up every day just to make a living. pay our debts and maybe have a little left over to invest in companies and technologies we believe in. Only to have those who run these companies skrew us over for their own personal gain. I’m also sick of the injustice and betrail of our goverment that has worked only for its own being and not for the people it was created for.
There will be justice at judgement day
Our fore fathers must be rolling in their graves
Let us hope for all Sirius investors that there is a positive outcome to what is happening now
Amen, Mike, amen !!
Mike,
I couldn’t have said it better, even though I was going to give it a shot. No need – you hit the nail on the head !!! We have been betrayed by everybody involved, and it is BEYOND CRIMINAL !
DRALAND,
My sentiments exactly. This could end up being one of the greatest injustices to a large group of people in a long, long time. This country is a fucking mess, and there seems to be no more honor and decency anymore. Whatever happened to peoples sense of RIGHT and WRONG? Very sad, indeed!