SIRI Intraday Updates for the Week of 2/09/09

[Demian]

Dow Jones........

Ê Sirius XM Radio Inc. (SIRI, $0.07, $0.02, 30.18%) is seeking an investment from Liberty Media Corp., The Wall Street Journal reported, citing people familiar with the matter, 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. (DTV, $23.28, $0.34, 1.48%) and Ergen's Dish Network Corp. (DISH, $12.90, -$0.08, -0.62%) - for control of the country's sole satellite-radio operator.

[Newman]

Rick: You own Sirius XM Shares. XM is a wholey owned subsidiary of Sirius XM, much like Delphi was a wholey owned subsidiary of GM.

If XM declares chapter 11, Sirius shareholders remain intact. It could affect the PPS, but seeing as how 2.1 billion in debt belongs to XM and will get reorganized, that affect would probably be a positive affect.

[Demian]

SIRI trading up 35.82% with 10 minutes to go.

Here comes the sun.........

[Newman]

The thing to remember is that Chapter 11 is REORGANIZATION. Basically, XM subsidiary would go into a holding, which would be court protected. They would be given time to reorganize their business plan, and the creditors would have to renegotiate all deals with them. This might eleminate some of the debt as well as drastically reduce the interest rates on some of their more outrageous debt (2014 and Dec 2009 debt) as well as push out the dates due on these.

Contracts are also considered "creditors", which means that GM and Honda would have to renegotiate the terms on their contracts as would other OEMs that XM has, Baseball would have to renegotiate, O&A, Martha Stewart, Opra, etc, etc, etc. Not all of these contracts would be renegotiated (some would remain the same), but some of them may not be renewed either.

There are just a few of the advantages...

[Demian]

SIRI closed up 34.545% @ .074 on volume of almost 198 million shares traded...

[imromo24]

5.....4.....3......2.....1......Bad news? Markets closed, Keep an eye on the news wire.....

[Demian]

http://biz.yahoo.com/ap/090212/siriu...ptcy.html?.v=1

AP
Report: Sirius seeks investment from Liberty Media
Thursday February 12, 3:49 pm ET
Report: Sirius XM Radio hoping for investment from Liberty Media amid bankruptcy chatter

NEW YORK (AP) -- Satellite radio provider Sirius XM Radio Inc., which may file for bankruptcy, is hoping for an investment from Liberty Media Corp., according to a news report citing sources close to the matter.

The Wall Street Journal said Thursday the talks were advanced, although a deal remained uncertain.

Sirius and Liberty Media were not immediately available to comment.

The paper said Sirius, which has few options left, is trying to fend off an unsolicited takeover approach from satellite TV mogul Charlie Ergen, boss of Dish Network Corp. and sister firm EchoStar Corp.

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, according to The Wall Street Journal. Sirius rejected the offer.

Despite signing up more subscribers, Sirius has never made a profit because it was burdened with large interest payments on its debt.

U.S.-based Sirius XM Radio has an audience of nearly 20 million people who use the service to listen to sports and music.

In above average trading volume, shares of Sirius rose 2 cents, or 33.8 percent, to 7 cents. The stock has lost 54.2 percent of its value so far this year.

[Demian]

Trading up in AH.....

Sirius XM Radio Inc.
Feb. 12, 2009 Market Close: $ 0.074

After Hours Trade Reporting
After Hours
Last: $ .08
After Hours
High: $ .08
After Hours
Volume: 2,078,926
After Hours
Low: $ .0739

[AmenhotepIII]

I'll bet some talking head tries to spin this negative for SIRI.

Russian and US satellites collide

http://news.bbc.co.uk/2/hi/science/nature/7885051.stm

[Demian]

http://www.examiner.com/x-426-Sports...sXM-bankruptcy

MLB and NFL protected themselves against expected Sirius-XM bankruptcy
February 12, 12:19 PM
by Paula Duffy, Sports Examiner

Sports Business Daily reports that major sports' leagues are checking their contracts with Sirius-XM. It is being reported in multiple media outlets that the company is on the verge of missing debt payments due next week.
XM and Sirius hoped to solve their huge debt problems by merging and it seems that for right now, it hasn't worked. Customer acquisition costs as well as bidding for various sports broadcast rights had pitted the companies against each other since their inception dates.

Sirius XM's CEO, Mel Karmazin is reported to be frantically investigating all options in order to avoid filing for Chapter 11 bankruptcy protection.

Right now it is known that the NFL and MLB should still expect to be paid their broadcast fees despite a bankruptcy filing, although a judge might change that expectation.

Their negotiators had the foresight to ask for escrow accounts into which were deposted the fees for the 2009 season in the case of the NFL and the 2009 and 2010 seasons for MLB.

The total debt currently crushing the company is reported to be $172 million. The MLB and NFL fees that are in escrow accounts exceed that amount with MLB expected to be paid on March 1, 2009 for the upcoming season.

Although the leagues should be justifiably concerned about not getting paid, I'm sure they are just as interested in the continued viability of the satellite radio business. I know as a subscriber I am hopeful that my daily baseball fix will be available to me.