Sirius XM Shareholders Authorize Reverse Split

Discussion in 'Howard Stern' started by mulls, Dec 19, 2008.

  1. mulls

    mulls New Member

    From the article:

    "Sirius can now perform a reverse split of 10-to-1 to 50-to-1 shares any time before the end of next year. Sirius shares are trading at $0.14 today, and need to beat $1 before mid-January, or Nasdaq could de-list them."

    I wonder what this means for Howard and the gang. A reverse split is never a good thing for heavy shareholders, which I have to imagine and Howard et al are. That is a major dilution, and comes right our of their pockets.

    Sirius XM Shareholders Authorize Reverse Split (SIRI)

    Bottom line - I gladly pay my subscription fees, but this does not bode well for Bubba negotiations and the general health of Sirius. Curious what you guys think...
  2. Forevernever

    Forevernever Active Member

    Howard sold his shares long, long ago.

    Whatever happens, the company's in no danger of closing. They will get scooped-up before they go bankrupt, and if not, they'll reorganize (which, at this point, wouldn't be so bad, as it would let them get out of all those expensive contracts they signed with talent that isn't doing anything for the company, like Stewart, Oprah, etc.). The era of the half-billion-dollar contract is over, though, and not only here, but on terrestrial as well. Its a dying medium.

    I actually made a lot of money of this stock. As soon as I heard Howard signed with Sirius, I bought a couple thousand shares. I held for about six months and then sold. I feel sorry for the suckers who bought at $1 and thought they were getting a great deal.
  3. jamesp717

    jamesp717 Member

    Hey Now

    I am no financial genius but how does a reverse split dilute the stock ?

    Isn't dilution when they generate more stock to sell, this just takes existing stock and reduces the number of shares.

    Not a big fan of splits in either direction, but less of a fan of reverse splits.
  4. Forevernever

    Forevernever Active Member

    If anyone's hurting, its got to be Mel Karmizin. Didn't he buy $3 million worth of stock at $2 or a share as a show of confidence? Ouch.
  5. Bark

    Bark Hey Now!

    Well, it gives him added interest to make the company successful. The losses are just on paper for now.
  6. JoeTan

    JoeTan Well-Known Member

    He did at $6.50 a share too.
  7. Biaviian

    Biaviian Well-Known Member

    What blatant misinformation like that, I'm sure glad you aren't my broker! I hope, for your sake, you don't own stocks.
  8. mulls

    mulls New Member

    Ha, admittedly I was totally wrong...or at least about a reverse split diluting stock. It's still not a good thing for the company however. Don't you worry, I own plenty of stock - I just let a financial planner handle it, clearly.

    I was also wrong about it hurting Bubba negotiations as he was re-upped today for two years...oops.
  9. Elwood

    Elwood Member

    Voice of Dice: I authorize Robin to do a reverse split on my cock - oh!
  10. Forevernever

    Forevernever Active Member

    Whatever they do, they better do it soon; SiriXm closed down another 2 cents today.
  11. me_rubin

    me_rubin Member

    Must of closed lower due to them re-signing Bubba...

    Spending money they don't have for Talent he does not have....:chicken:
  12. Forevernever

    Forevernever Active Member

    You'll won't get an argument out of me on that one. One penny spent on Bubba is a penny too much.
  13. jef

    jef Power Pig, Hello!

    He can have all of my pennies. You guys can pretend it doesn't come out of your sub. :cool:
  14. Forevernever

    Forevernever Active Member

    Actually, I'm thinking about canceling because of it, so he may not get any of my pennies at all.
  15. kryptonite

    kryptonite Well-Known Member

    Exactly. Sirius XM needs to realize that their target demographic are the fans of "adult-content talk", sports, and uncensored music.

    Martha, Oprah, and the others will bring in a few subscribers, but nowhere near the amount of the demographic.

    One good thing about this merger is that when the contracts are up for renewal, i'm sure many of them will be able to be re-negotiated for much less. No XM means that Sirius could only pay someone $5 million a year instead of $25. Those millions would quickly add up.
  16. hexagram

    hexagram Medicinal & Recreational.

    Someone correct me if I'm wrong, but SIRIUS never received a delistement notice.

    So once January 20th, 2009 comes around, NASDAQ can then issue the notice which would give SIRIUS more time (until July 2009) to hit $1.00 [where the clock would reset] (or maybe the NASDAQ will once again extend the timeline for SIRIUS and the 200+ other companies trading at under $1 if they need to, which would start the process all over again).
  17. microbob

    microbob Well-Known Member

    Last edited: Dec 21, 2008
  18. Scales

    Scales Member

    They are doing that as well.

    There are currently 3.5 billion shares according to googlefinance (some articles i've read state there are 4.5 billion shares) The plan is to increase that to 8 billion shares (approximately double what they have now)

    It is sure to lower the share price, and current shareholders lose out. There aren't a lot of people who want the shares sirius currently has, who is going to want to buy all of the new ones?
  19. k9feces

    k9feces Member

    How can anyone say that Satellite radio isn't successful.
  20. Forevernever

    Forevernever Active Member

    4.5 billion shares at 12 cents = $540 million. At this point, Howard could easily buy a controlling share in SiriXM, and maybe even buy it outright! I hate to say it, but this company is toast. Lets hope that whoever ends up buying them doesn't screw with the nature of the service too much. One other bad thing about this is that there is no way Howard will be resigning, at least not with SiriXM. They don't have the money to pay him, and even if they did, any hint that they might offer him another half-billion dollar contract would sink the stock. Its going to be a drastically scaled-back show (which won't work, IMO), or back to terrestrial.
    Last edited: Dec 22, 2008

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