Sirius XM being stalked by Dish?

**Scott Greczkowski** · 02-05-2009 09:11 AM

Heres a story from CBS Marketwatch

http://www.marketwatch.com/news/story/echostar-seen-acquiring-sirius-debt/story.aspx?guid={6DA577E6-58A8-4AE2-BA24-968BA93DA36D}&dist=msr_1

**VinceT3** · 02-05-2009 09:12 AM

my guess is they want them for the satellite to car stuff.. with the frequency they purchased.. Sirius XM's existing infrastructure.. it's definitely a bold move on their part.. not sure if it'll pay off though..

**Rangers484** · 02-05-2009 09:18 AM

Doesn't Dish has a history of buying failing satellite companies and their equipment that has eventually paid off?

**JosephB** · 02-05-2009 09:47 AM

I don't think they could turn the satellites into an asset for the existing Dish Network service, but think about how much capacity Sirius XM has. 6 satellites carrying two duplicative services. If I were Charlie here's the scenario I'd run:

Buy up all the debt and heck, maybe even the equity since it's dirt cheap.
Let it fall into bankruptcy and pick up the company for next to nothing.
Drop the duplicate service, either XM or Sirius. Work out whatever you want to with the subs with hardware that is useless (or heck, don't..an argument could be made that they would be useless if Sirius XM went under anyway)
Merge all the operations of the company with Dish and Echostar, whichever would be appropriate: IE hardware with Echostar, services and programming with Dish. You would eliminate a huge amount of the overhead, as I'm sure Sirius XM isn't so large that the HR/Finance/Payroll/etc operations of Dish and Echostar couldn't pick up the additional employees without only marginal increases in cost.

In this case, Dish Network has a huge advantage. They have broadcast TV, satellite radio, and a platform they can turn into mobile TV. They also have Sling which they can leverage the radio assets into. If push comes to shove they can even use the SDARS satellites for future Dish Network services and put an XM or Sirius antenna on new dish installs.

With all of this, buy up Sprint (or at least form a strategic alliance with them). Imagine being able to bundle Wimax, mobile phone, TV, and satellite radio. Dish would overnight become the provider of every type of communications into your home. They could even work to put satellite reception into mobile phones. Imagine a smartphone with satellite radio and mobile TV...and the radio and TV wouldn't have to burn up precious terrestrial bandwidth.

**hrxtreme** · 02-05-2009 10:04 AM

Originally Posted by JosephB

Dish would overnight become the provider of every type of communications into your home.

Sounds like Charlie wants to takeover the world!!!

But in all honesty, this is interesting... we shall see...

**Dish VIP** · 02-05-2009 10:19 AM

Does this explain why new HD programming is still in "soon" mode?

**navychop** · 02-05-2009 10:23 AM

Well, I'm gob smacked!

Adding these "radio" satellites might make some kind of attractive package for Dish subs- remember, there is in fact a limited video mode working out of satellite radio. He could keep both satellite systems running, with new hardware to receive both, use one just for expanded nationwide video (TV), and the other for radio. Synergy, synergy, synergy. Maybe even dump the old company & it's obligations to subs entirely, form up something rational, and make an attractive offer to former subs.

Gee, I wish I'd seen this coming. Might work out quite nicely, especially if the FCC plays nice.

**truckracer** · 02-05-2009 11:24 AM

watch the subscription prices keep climbing....pretty soon we could have a 50-60 dollar month satellite radio bill with a two year contract. Yeah! whoopeeee

**mwgiii** · 02-05-2009 11:39 AM

Charlie could not do any worse that Mel has.

**FIREBIRD81** · 02-05-2009 11:59 AM

Sounds like a hostile takeover. Sirius and Dish shares are up on the news. How could it not be good for shareholders, unless sirius files chapter 11? Charlie can't steal the shares! If he's taking over the company he has to BUY the shares. Buying the debt up actually gives Sirius more time to operate, unless Charlie then demands Siius pay him immediately and forces chapter 11. I would think that would be dangerously close to corporate raiding, tho and he could get into some trouble with the SEC. And seriously....are you telling me he is going to force Howard Stern to give up his stake in the company that was a huge part of is compensation and expect Howard to stay? NO Howard = no sirius. It doesn't make sense that he would do that.. ....