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  1. imromo24 is offline
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    Joined: Aug 2008 Location: Steeler Town, MI Posts: 2,524
    05-09-2009, 09:33 PM #1

    Howard Stern: 1 BIllion shares

    I have seen several posters questioning why we need the additional 1billion shares available...and it occured to me that they could possibly use the shares to pay talent.

  2. homer985 is offline
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    Joined: Mar 2008 Posts: 485
    05-10-2009, 08:28 AM #2
    Remember, it's actually only 600MM shares -- because of the anti-dullitive measures on Liberty's 40% guarantee from their Preferred Shares.

    If there are 8BB shares outstanding (after conversion of all convertible instruments), then Liberty would own 3.2BB of them (after conversion of their B-1 shares) with the remaining 4.8BB held by "everyone else".

    But if you increase that to 9BB, then Liberty would own 3.6BB of them (via conversions) with the remaining 5.4BB held by everyone else.

    That means that the 1BB additional approved shares is actually only 600MM that can be "used", because the other 40% must be reserved for Liberty.

    Unless the 1BB are for Liberty -- with Sirius using them to exchange Liberty held Bonds for shares. That's also possible.



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  3. relmor2003 is offline
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    Joined: Oct 2008 Posts: 1,937
    05-10-2009, 01:09 PM #3
    Quote Originally Posted by homer985 View Post
    Remember, it's actually only 600MM shares -- because of the anti-dullitive measures on Liberty's 40% guarantee from their Preferred Shares.

    If there are 8BB shares outstanding (after conversion of all convertible instruments), then Liberty would own 3.2BB of them (after conversion of their B-1 shares) with the remaining 4.8BB held by "everyone else".

    But if you increase that to 9BB, then Liberty would own 3.6BB of them (via conversions) with the remaining 5.4BB held by everyone else.

    That means that the 1BB additional approved shares is actually only 600MM that can be "used", because the other 40% must be reserved for Liberty.

    Unless the 1BB are for Liberty -- with Sirius using them to exchange Liberty held Bonds for shares. That's also possible.



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    I agree Homer, but is it LIKELY.
    Could this have been a sideline agreement from the board to liberty in feb, agreeing to a set price they will actually buy shares at once the price per share goes well past this point(so it wont be crushed too bad back to this price) after the sale. If you were to speculate Homer, maybe the remaining shares were always in agreement, and a price was reached. If so, what do you think Liberty would have been able to negotiate? All things being equal, throw away all conspiracy theories I would have to say at least enough to pay off the loan. Minimum. So they basically bought half the company for the price of the loan, 550 million dollars. If this ends up being the case Homer, what emotional reaction would you have to learn a 12 billion post merger company sold for a little for 1 billion dollars. Granted they only own half, but if they are valuing half the company at 550 million......Which is a huge upgrade, because 40 percent of the company in feb. was worth zero dollars and zero cents.
    Last edited by relmor2003; 05-10-2009 at 01:14 PM.