SIRIUS XM Adopts Stockholder Rights Plan

[homer985]

After reading the article - everything should make more sense now. It is as I believed... that Liberty is merely protecting its invesment in Sirius. So that someone doesn't come in and buy up 5% and combine it with Liberty's 40%~49.9% and trigger the deeper restrictions. So Sirius put in the Poison Pill to prevent it from happening.

I haven't made the connection of the significance of the tender offer between years 2 and 3 yet and why they would be forced to make a tender offer on the remaining shares and how that would effect the NOL's... but as you can see, everything is tied together now.

The Liberty investment, the NOL's, the 49.9% ownership limit and the new Poison pill... they're all tied together. And so is the eventual overtaking by Liberty... whether 51% or 100% - it's pretty much inevitable now. For Liberty to be able to cut their tax bill by $2BB in the future from this investment? Hello???

BTW, not to be a dick... but this old article confirms that Brandon is wrong again in his latest blog. Sorry Brandon.


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[SiriMonkey]

After reading the article - everything should make more sense now. It is as I believed... that Liberty is merely protecting its invesment in Sirius. So that someone doesn't come in and buy up 5% and combine it with Liberty's 40%~49.9% and trigger the deeper restrictions. So Sirius put in the Poison Pill to prevent it from happening.

I haven't made the connection of the significance of the tender offer between years 2 and 3 yet and why they would be forced to make a tender offer on the remaining shares and how that would effect the NOL's... but as you can see, everything is tied together now.

The Liberty investment, the NOL's, the 49.9% ownership limit and the new Poison pill... they're all tied together. And so is the eventual overtaking by Liberty... whether 51% or 100% - it's pretty much inevitable now. For Liberty to be able to cut their tax bill by $2BB in the future from this investment? Hello???

BTW, not to be a dick... but this old article confirms that Brandon is wrong again in his latest blog. Sorry Brandon.


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Homer,
Because I am trying to learn, where does the term Poison Pill come from and what does it mean?
Be gentle
Julie

[homer985]

One correction to my own post -- I just made the connection to August 1, 2011... that will be the 3 year anniversary of the merger. Which will be the end of the 3-year resticted time limit talked about in the WSJ article. So that explains the timing of the Poison Pill to end on that date... which is to keep a possible buyer away from 5% or more until the 3rd anniversary of the merger closing.

And since August 1, 2011 also falls roughly halfway between Liberty's 2nd and 3rd anniversary of their investment -- Liberty would then be able to make their "permitted tender offer" likely at some point after the Aug 1 date, I would assume. I'm betting that that is why that was written into the investment agreement... and if they don't make the tender offer for the whole company, then they can buy as little or as much as they want when they hit the 3rd anniversary of their investment a few months later in early 2012.

So there is the connection I was trying to make before. It all makes sense to me now.



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[homer985]

Homer,
Because I am trying to learn, where does the term Poison Pill come from and what does it mean?
Be gentle
Julie

Best to just start reading...
http://en.wikipedia.org/wiki/Poison_pill

[JohnnyIrishXM]

Homer

I'll take $4.99 per share right now!!!

As always, Homer you are probably right. Guess we will have to wait 2 years for the answer.

Yeah after the 1-50 R/S next year!!!

[SiriMonkey]

Best to just start reading...
http://en.wikipedia.org/wiki/Poison_pill

Thank you, makes sense now.

[JohnnyIrishXM]

After reading the article - everything should make more sense now. It is as I believed... that Liberty is merely protecting its invesment in Sirius. So that someone doesn't come in and buy up 5% and combine it with Liberty's 40%~49.9% and trigger the deeper restrictions. So Sirius put in the Poison Pill to prevent it from happening.

I haven't made the connection of the significance of the tender offer between years 2 and 3 yet and why they would be forced to make a tender offer on the remaining shares and how that would effect the NOL's... but as you can see, everything is tied together now.

The Liberty investment, the NOL's, the 49.9% ownership limit and the new Poison pill... they're all tied together. And so is the eventual overtaking by Liberty... whether 51% or 100% - it's pretty much inevitable now. For Liberty to be able to cut their tax bill by $2BB in the future from this investment? Hello???

BTW, not to be a dick... but this old article confirms that Brandon is wrong again in his latest blog. Sorry Brandon.


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Yes homer i saw this article in feb.and it was the reason i knew Bk was bogus and why i doubled my shares..it is all about the 6 bil NOL for Liberty in 3 years,SiriusXM will be under Liberty's umbrella by then,probably just over 50% stake in company tho.

[asm610]

How do they skirt the FCC with regard to owning both SATRAD and SATVID spectrumZ? I would think if the go above the 49% mark in ownership...there would be some major regulatory hurdles.

[homer985]

There are no restrictions in cross-ownership between DBS and DARS. In fact, there are no cross-ownership restrictions on DARS at all (anymore, now that the FCC lifted the ban on both licenses being held by one common owner).

I would also think that the FCC would welcome the move - if it is proven to be beneficial to the public that the company be under control of Liberty.



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[Sirius Roadkill]

After reading the article - everything should make more sense now. It is as I believed... that Liberty is merely protecting its invesment in Sirius. So that someone doesn't come in and buy up 5% and combine it with Liberty's 40%~49.9% and trigger the deeper restrictions. So Sirius put in the Poison Pill to prevent it from happening.

I haven't made the connection of the significance of the tender offer between years 2 and 3 yet and why they would be forced to make a tender offer on the remaining shares and how that would effect the NOL's... but as you can see, everything is tied together now.

The Liberty investment, the NOL's, the 49.9% ownership limit and the new Poison pill... they're all tied together. And so is the eventual overtaking by Liberty... whether 51% or 100% - it's pretty much inevitable now. For Liberty to be able to cut their tax bill by $2BB in the future from this investment? Hello???

BTW, not to be a dick... but this old article confirms that Brandon is wrong again in his latest blog. Sorry Brandon.


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As to share price, it is also worth noting that Liberty is only prevented from a short hedge against their preferred shares until 12/31/09 as pointed out by you (homer) somewhere in a prior post. Maybe this could be interpreted as only leaving 8 months for current shareholders to close-out their positions rather than 2 years?