Now this is a new development. Along with Ergen letting Karmazin keep his job...Originally Posted by Bulldog17
SIRIUS XM SATELLITE RADIO FORUM
Now this is a new development. Along with Ergen letting Karmazin keep his job...
Last edited by Siriusowner; 02-13-2009 at 01:20 AM.
If nothing else, it is sounding more and more like in the short term BK may not happen after all.
Anyone think tomorrow is a good buying opportunity? The announcement of deal would likely raise the stock price.
Yes...that paragraph is what stood out to me as well.
Bankruptcy Attractions
No wonder Ergen is nosing around. "He's an entrepreneur," says Sanford C. Bernstein analyst Craig Moffett. "He is always looking for his next business." Ergen could derive a lot of benefits from an acquisition of Sirius XM, Moffett says. For starters, the company could use the bankruptcy proceedings to drive down costs, including deals with carmakers, which share profits with Sirius for pushing new subscriptions.
Why would Siri be attractive to Ergen if it declares BK ? He will lose more than he will gain.
Last edited by Siriusowner; 02-13-2009 at 01:34 AM.
i just love how the media plays all sides
Under Liberty's proposal, the company wouldn't acquire Sirius outright or seek to pair it with DirectTV Group Inc., the satellite-TV provider Liberty controls. Liberty would make an investment that would enable Sirius to meet its credit obligations in return for a sizable stake, one person close to the situation said. Neither offer involves buying out Sirius's equity holders.
Well, lets put it this way, they may declare BK.
Yes, I agree. They may infact end up declaring BK.
My point was that since Tuesday afternoon, the spin in many of these articles seem to be moving away from imminent BK.
I personally think a deal is more likely at this point. Now, a deal with Ergen may not be a positive thing either. It would depend on his plans for the company like the article states.
From the WSJ report:
"In an apparent effort to extract further concessions, Mr. Karmazin looked set to put off a final decision until the weekend. Sirius has until Tuesday to repay $175 million in bonds held by Mr. Ergen. If it fails to cut a deal with him or raise the money elsewhere, Sirius will be forced to file for bankruptcy, according to people familiar with the matter.
Sirius is buckling under a $3.25 billion debt load and has been unable to borrow more money in the credit markets or from banks. Even as Sirius has tried to play its suitors against each another, it has suggested privately to investors that bankruptcy might be preferable."
IMO:
1.- It seems to me that the cards are on the table and is up to Karmazin.
2.- When is BK preferable to investors ??? They would be wiped out !!! Unless of course they are talking about the XM subsidiary.
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