XM uses SeaLaunch... it was a joint partnership of Boeing and a few other groups. XM used them for all 4 of their launches and had contracted with them for the launch of XM-5 next year. Did XM pay anything? Perhaps a downpayment, but not the whole thing. Final launch payments aren't normally due until just prior to -- or post launch.
Sirius has used International Launch Services for their satellites -- and is contracted with them for their next 2 (or 3) as well.
Regardless, this is pretty big business. In the event that SeaLaunch's Chapter 11 turns into Chapter 7, someone is going to buy the SeaLaunch assets and want that 5th launch from XM... possibly Boeing, who has their own launch collaberation going with Lockheed Martin. My bet is they'd work a deal with XM to secure the business on XM-5, perhaps even cutting them a break in light of amounts already paid to SeaLaunch.
How much did they already pay? I believe over the years that I've estimated that an XM/SeaLaunch operation was approximately $60MM each. How much could XM had paid -- this is literally a stab in the dark -- but I'd say 10%-20% down... so around $10MM to date??? But that's a total guess.
PS - Charles, on a different topic... here's an article about Stern where they took actual quotes from his radio show -- saying that there is a contractual issue with being on the iPhone App. This is not from Twitter and actually came out before the phoney twitter piece. This appears to be legit.
http://www.dailyfinance.com/2009/06/...-will-be-on-i/
-----------
yes that is legit homer cause i have heard it heh. nice to see you back.
Charles LaRocca
SiriusBuzz Founder
good stuff today, i predict we'll close at .394 with another run up to .43 tomorrow, maybe we broke out of siri land and can trade like a real stock?? just guessin'
No, it is not. XM has always deferred final payments on their satellites until prior to launch; as well as final launch payments. XM noted this in their recent annual report, that they have deferred final payments on XM-5 to January 2010. That would include the SeaLaunch payments as well.
I'd have to dig out the SeaLaunch contract... but that will take some time.
--------
Charles LaRocca
SiriusBuzz Founder