The "Deal" ?

petteri

New Member
Oct 12, 2008
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This is good news! Although I wonder if Chp. 11 wouldn't have been all that bad. It would have allowed them to renegotiate all their contracts and lower costs significantly. Although with this deal they avoid the mess with Ergan and Echostar. Hopefully this deal will put them on a path to some stability and allow the company to finally set a realistic path to profitability.
 

Sirius Rich

Well-Known Member
Oct 11, 2008
2,153
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Houston
This is good news! Although I wonder if Chp. 11 wouldn't have been all that bad. It would have allowed them to renegotiate all their contracts and lower costs significantly. Although with this deal they avoid the mess with Ergan and Echostar. Hopefully this deal will put them on a path to some stability and allow the company to finally set a realistic path to profitability.

Not bad thoughts at all, but people do not buy from Bankrupt Companies. Doesn't matter if it is Chapter 11 or 7, the general consumer will not buy a product from a company that is in bankruptcy. Did anyone up their subscriptions to a longer term the past month?
 

hexagram

Medicinal & Recreational.
Oct 11, 2008
2,760
96
48
Seattle, WA
As the Orbitcast article says... Mel has done it again! :bigthumbup:

Liberty gets 40% of the common stock and Sirius XM remains in control of it's company.

All I can say is, I'm glad it was Liberty Media (DirecTV) instead of Echostar (Dish Network) that worked out a deal with SIRIUS XM.

Good work, Mel!
 

HecticArt

Administrator
Oct 19, 2008
40,200
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Toledo, Ohio
Not bad thoughts at all, but people do not buy from Bankrupt Companies. Doesn't matter if it is Chapter 11 or 7, the general consumer will not buy a product from a company that is in bankruptcy. Did anyone up their subscriptions to a longer term the past month?

You do have a point, I thought about upping to a year long contract, but had stalled waiting to see what was going to happen. I might go ahead and do it before the free streaming expires.

This horse ain't dead yet.
 

Undertaker

New Member
Nov 1, 2008
10
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70
Louisville, KY
As the Orbitcast article says... Mel has done it again! :bigthumbup:

Liberty gets 40% of the common stock and Sirius XM remains in control of it's company.

All I can say is, I'm glad it was Liberty Media (DirecTV) instead of Echostar (Dish Network) that worked out a deal with SIRIUS XM.

Good work, Mel!

Me too!:yesshake:
 

jef

Power Pig, Hello!
Oct 12, 2008
3,849
185
63
Good news! Shows that there is something worthwhile going on in SatRad right now - something I think most of us here feel. Too many customers and too much promise, IMO, to just let it sink and die. This deal shows that other people think so, too. Way to go, Mel!
 

Superman07

Member
Oct 27, 2008
35
1
8
I am pleased with this news. I know there has been a lot of discussion on the plan (at least for Sirius) to restructure the pricing and charge for the online content. I hope that this will provide some much needed revenue, and along with the synergies, allow the company to start making a profit and pay off some debt.

I know as much as people complain about this new charge and say they will drop the service, I'm sure that is something Sirius|XM has considered. Heck, I even wonder how many people actually use the service. Anyway, if even such a small percentage as 10% decide to pay, I'm sure the pay off will be "worth" it in terms of dollars to the company over the losses by those that choose to leave and take their subscription fee with them.
 

HecticArt

Administrator
Oct 19, 2008
40,200
11,774
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Toledo, Ohio
I don't think I've EVER seen this much love for Mel on this forum!

How about a big group hug for old Mel? ? ? ? ? ?



OK everybody, don't be shy. Get in here now.
DAB! I see you back there! Come on!
 
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dlynx

Member
Oct 9, 2008
411
8
18
Michigan.
www.btlsfan.com
I'm glad that they got the deal done. I am disappointed in the terms of the loan, but when your back is against the wall I guess there isn't much you can do. Maybe I'm mistaken, but a 15% APR seems an awfully high price to pay for this. I knew it would be high last friday when they said "Bridge Loan" ... just not that high.

Of course I've never brokered 1/2 billion dollar deals to know what a good rate would be, so maybe I'm off base.
 

Spokker

Active Member
Jan 15, 2009
906
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Don't they still need to reorganize and get rid of these awfully expensive contracts before they make money?
 

dlynx

Member
Oct 9, 2008
411
8
18
Michigan.
www.btlsfan.com
Oprah - Ends Sept 2009 (3 year contract/55 mill)
Martha - Ends Sometime 2009 (4 year contract/30 mill)
Howard - Ends 2011 (5 year contract/500 mill+)
Nascar - Ends 2012 (5 year/107.5 mill)
NFL - Ends 2011 (7 year/220 mill)
MLB - Ends 2012 - extendable by MLB to 2015 (50 mill first year, 60 mill thereafter)
NHL Ends 2018 (10 year/100 mill)

Not sure about NBA, PGA, and the college sports. Any other high priced talent... besides Russo I'm missing?
 

Vols44

Well-Known Member
Oct 18, 2008
1,223
133
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I homed in on two points in the article. First Liberty Media will get 12.5 million shares of preferred stock whic can be converted into 40% of common stock. Additionally Liberty will have 40% representation on the SIRIUS XM Board of Directors. This paves the way to down size the number of like stations and allow high end contracts to expire. A downsizing example is three rock music stations instead of four. Reducing costs and maintaining at least 17 million subscribers are keys to reaching the green in the next five years.
 

Jleimer

Active Member
Oct 30, 2008
1,226
13
38
Sparks,NV
Hopefully Sirius XM will allow customer representation on this because they do not need to make more mistakes by alienating their listeners through this and making sure the product returns to its glory days.