Baseball says they won't renegotiate, but the article points out:
"...one issue for the programmers is that if Sirius XM does file for bankruptcy protection, a bankruptcy court judge is likely to dismantle many of the programming deals and revise their terms. That might even cost the programmers more than under a Karmazin-revised plan. "
Demian..a special thanks to you for all the correction calls you made to media today.
Trippin. a thanks to you as well...
Bought another 10,000 shares today at .057...now have 30,000 at avg of .416...a hedge in case they sell to a prospective buyer such as Ergen or Malone buyers at .50...
Be nice to see SiriusXm radios and subs sold on QVC. Maybe that is part of Malone's plans to buy SIRI? Imagine how many subs he could add?
Demian, your pictures have been a relief...can you find a good one of a yo yo? Would really be fitting...
new wsj article subscription required
http://online.wsj.com/article/SB1234...nd_Deal_Makers
By MATTHEW KARNITSCHNIG
Sirius XM Radio Inc. is seeking an investment from Liberty Media Corp., people familiar with the matter say, in a last-ditch effort to fend off an unsolicited takeover approach from satellite entrepreneur Charles Ergen.
The talks set the stage for a battle between the leading U.S. satellite-television providers -- Liberty-controlled DirectTV Group Inc. and Mr. Ergen's Dish Network Corp. -- for control of the country's sole satellite-radio operator.
Liberty, which is controlled by billionaire John Malone, emerged as a potential "white knight" for Sirius after Mr. Ergen made an unsolicited offer late last year to take control of the radio operator.
Though the talks between Sirius and Liberty are advanced, a deal remains far from certain, a person familiar with the matter said. It wasn't clear how much Liberty would be willing to invest in Sirius and whether it would end up with control. Mr. Malone is known as a careful negotiator and is unlikely to cut a deal in haste.
Sirius doesn't have much time.
Mr. Ergen, who controls a satellite empire around EchoStar Corp. and Dish, quietly began amassing Sirius debt in the fall. He is now using that debt, including about $175 million in bonds that mature on Feb. 17, as leverage to try to force Sirius into a deal. Sirius, which carries a total debt load of about $3.25 billion, is nearly out of cash and will likely be forced into bankruptcy proceedings or a deal with Mr. Ergen if the company can't secure funds to repay its obligations by Tuesday.
Mr. Ergen has offered to inject about $500 million into Sirius and restructure the roughly $375 million in short-term debt he holds in return for control of the company. Sirius rejected the offer.
The gamesmanship between Sirius and Mr. Ergen has escalated over the past week. Sirius had been trying to convert the $175 million debt tranche that matures Tuesday into more senior debt and equity with the previous holder of the notes, a hedge fund. Before it could secure a deal, however, Mr. Ergen swooped in last week and acquired the bonds.
It was a high-risk move because the notes in question are junior to about $600 million in bank loans and other debt Sirius has issued, and will likely be worthless if the company goes bankrupt.
This week, Sirius representatives responded to Mr. Ergen's move by spreading word that the company was preparing to file for bankruptcy and had hired bankruptcy and restructuring advisers. Company officials also privately told investors that Sirius has entered a "zone of insolvency" and that a bankruptcy filing would be preferable to cutting a deal with Mr. Ergen, according to people who participated in the discussions.
Sirius XM Seeks Help from Liberty Media to Fend Off Takeover
Sirius shares, which have lost nearly all of their value since late July, fell 52% to six cents in 4 p.m. Nasdaq trading. The company's market value is less than $200 million.
Some investors have expressed concern that Sirius might pursue an deal inferior to Mr. Ergen's offer just to escape his clutches. Mr. Ergen and Sirius Chief Executive Mel Karmazin have a long-running feud that dates back to the time when Mr. Karmazin ran Viacom Inc.
WTF?
Is this journalism? Who says this is a "last ditch effort"? And "escape his clutches?" Is Ergen effing Palpatine now? And now they admit bk was floated as a negotiating ploy?
WSJ wants a soap opera. Or WSJ is a soap opera.
Or better, and I can't believe I'm about to write this ...
The Wall Street Journal has jumped the shark.