Sirius XM being stalked by Dish?

**navychop** · 02-06-2009 02:25 PM

I suspect it will be most advantageous to Charlie to just buy/take over certain assets. Best be rid of all liabilities, including deals with the FCC & pricing limitations and expectations. And to avoid dealing with the FCC as much as possible. He hasn't exactly received sympathetic hearings in the past.

Of course, for whatever use he plans to put the assets, he'll be talking with regulatory agencies. But he could offer a considerably different service and consumers might not expect such low prices. This could get very interesting. Synergy. But will that involve keeping the system where at least one set of the existing radios can remain in use?

**kstuart** · 02-06-2009 02:32 PM

Originally Posted by s10zr2

If charlie bought up sirius/xm I wonder if directv would still carry it in there programming lineup? I don't think they would like the idea of having to pay charlie.

When DirecTV was owned by News Corp, Charlie had to pay them for FOX TV channels.

In that situation, the FCC has mandated that you must provide content at fair prices to your competitors.

But, I think the reverse situation is in play:

If EchoStar buys SiriusXM, then Charlie can offer "bundled" packages - such as:

* America's Everything Pack includes SiriusXM Radio in your car
* SiriusXM Radio counting as a $10 premium addition to DVR Advantage

etc.

PS Note that since the merger agreements with the FCC are required for the Satellite Radio License, then any bankruptcy would affect business contracts, but not the license. The FCC can simply refuse to continue the license if the reorganized satellite radio business does not follow the existing FCC agreement.

**drdroo** · 02-06-2009 02:37 PM

Ultimately it would make Charlie look more attractive for sports too. Why cater to just TV when you could cater to Satellite Radio and to TV? Charlie might actually get more favorable situations with sports as result.

It could go the other way too, of course.

**yaz96** · 02-06-2009 05:38 PM

Originally Posted by jegrant

Hopefully Charlie would be able to negotiate some of the more expensive content like Stern & Oprah downward, but perhaps could also offer them TV deals in exchange for charging less for radio. What if Stern got "Howard TV" as a 24/7 channel (or two) on E*? Fans could watch him live on TV.

Would Oprah perhaps be willing to offer her radio channel to SXM cheaper if E* would also carry the new Oprah Winfrey Network (TV channel)?

Think of the synergy! Charlie could offer a "multi media" package for both content producers & consumers.

That's brilliant thinking, good for customers, and makes good business sense.

So, forget about Echostar/Charlie doing it..........

**mainstream** · 02-06-2009 05:59 PM

Fox news just flashed a slate that said Sirius needs 175 million to keep Echostar from taking control.

**mike123abc** · 02-06-2009 06:28 PM

Originally Posted by mainstream

Fox news just flashed a slate that said Sirius needs 175 million to keep Echostar from taking control.

I see a win win for Echostar. Either they pickup Sirius XM cheap or they get their debt paid dollar for dollar instead of whatever discounted rate Echostar bought it.

**kenny9966** · 02-06-2009 07:12 PM

I am all for Echostar buying Sirius-xm. Scott and I both agree since the merger that the quality of service especially on the XM side has gone downhill. On top of that they try to raise rates for something that was originally in our 12.95 a month commitment that the FCC mandated for 3 years. I'd be happy for Charlie to take over get rid of most of the dj's and return XM back into "america's largest playlist" again. Go Charlie go.

**stck4evr** · 02-06-2009 08:56 PM

Originally Posted by ReconPJ

I believe that would net him an additional 6 sattelites...Only would need three for radio....

You need all 6 - 3 for xm, 3 for sirius - otherwise you would loose half subscribes. Untill everyone has a radio that can pickup both, you need to keep all sats. Unless Dish wants to loose half subscribes?

**HDRoberts** · 02-06-2009 08:58 PM

That, and the s band satellites the services use are useless for DBS, although Charlie may have other uses planned.

**HobbyTalk** · 02-07-2009 12:36 AM

Originally Posted by JosephB

Charlie could also offer some type of hardware swap for the half that are affected.

I'm sure all those OEM radios will be cheap to replace. Wonder how many Benz owners will like having their Sirius radio swapped out or if Charlie will want to give a discount on a $1200 Benz radio. Let's see, give 1M Benz customers a 50% discount, that would only cost Echostar $600M, wonder what we do with the rest of the auto makers?