Thread: Sirius XM Prepares Bankruptcy Filing

Everything I have seen in the many many years of being a Dishnetwork subscriber (almost from their start) and being on the forums back to those days, I can tell you Charlie is one step ahead of them. Just two of the big things - he announced Dish would carry local channels, when DBS was not doing so at the time and most people said what a big mistake that would be. Most people would not have DBS as their provider if locals or at least networks were not available unless it was the only choice to watch TV.



Then when it looked like distant channels would be turned off and Dish might lose customers who do not have locals, (and Direct TV had started switch campaign) *POOF* Charlie waves his magic wand and leases space to a company who provides that service. Withstood court challenges, and the rest is history......
I think Charlie knew they could go into bankruptcy when he bought the stock, I say he has a plan.

Originally Posted by Tampa8

Everything I have seen in the many many years of being a Dishnetwork subscriber (almost from their start) and being on the forums back to those days, I can tell you Charlie is one step ahead of them. Just two of the big things - he announced Dish would carry local channels, when DBS was not doing so at the time and most people said what a big mistake that would be. Most people would not have DBS as their provider if locals or at least networks were not available unless it was the only choice to watch TV.

Then when it looked like distant channels would be turned off and Dish might lose customers who do not have locals, (and Direct TV had started switch campaign) *POOF* Charlie waves his magic wand and leases space to a company who provides that service. Withstood court challenges, and the rest is history......
I think Charlie knew they could go into bankruptcy when he bought the stock, I say he has a plan.

I think he does too. something tells me that Scott's thinking in the podcast is exactly right that Charlie wants control of Sirius/XM and I for one would think that could be a GREAT thing for satellite radio. quite frankly Charlie might just save satellite radio IMO.

Originally Posted by DJ Rob

The stock isn't the same as cash.

It is if once Howard got that stock he turned around and cashed it in, that money came from somewhere didn't it.

One group that should probably be concerned about with a Charlie takeover of Sirius XM are sports fans.

Between Sirius and XM, I believe all the major sports were covered for satellite radio

But which of the two satellite TV companies doesn't have NFL Sunday Ticket? Which one doesn't have MLB Network?

Now imagine a Echostar-owned Sirius XM trying to negotiate new contracts with NFL and MLB when they already have problems getting their stuff on Dish Network...

Originally Posted by rad

It is if once Howard got that stock he turned around and cashed it in, that money came from somewhere didn't it.

He most likely was not allowed to do that. His contract probably said that the stock may not be sold without following very strict guidelines. His $250 million of stock is now worth about $600k.

Originally Posted by jadiff

He most likely was not allowed to do that. His contract probably said that the stock may not be sold without following very strict guidelines. His $250 million of stock is now worth about $600k.

Don't know if he had to keep some of it or not, but he did sell,

Howard Stern Moves to Sell 0M in Sirius Stock

"Just three days after starting his new job at Sirius Satellite Radio Inc., shock jock Howard Stern is now able to sell the roughly $200 million in Sirius stock that he received as part of his five-year deal with the company.

Sirius' contract with Stern runs through 2010, but the company disclosed last week that it was giving Stern and his agent 34.4 million shares of stock right away because it had already reached certain undisclosed targets for subscriber growth under the deal it signed with Stern in late 2004.

On Wednesday, the company made another regulatory filing saying that entities controlled by Stern and his agent, Don Buchwald, would receive the proceeds of the sale of the shares, which could occur at any time. It's not yet clear when or how much they will sell, and Buchwald did not return a call seeking comment.

Nearly all of the stock is going to Stern, but Buchwald also received a substantial chunk: 3.125 million shares, worth nearly $20 million at current share prices, or 10 percent of the 31.25 million shares that Stern received, which are now worth just under $200 million.

Sirius originally said its deal with the shock jock was worth about $100 million per year in cash and stock over the five years of the contract, or $500 million, including costs for producing and marketing the show

But thanks to the nearly doubling of Sirius' shares since then, the value of the stock portion of the contract went from about $110 million to more than $200 million, making the total deal now worth more than $600 million at current stock prices."

Poor customer service. Try to cancel your subscription. They make it nearly impossible. You can't cancel on-line. When I called in to cancel, I was transferred to someone else and put on a LONG hold. My call was then cut off. (This happened twice.) The rep. would not take "no" for an answer. The whole experience was very frustrating (and time consuming). I would never do business again with a company that operates in this way.

Very interesting news on Howard today:

First, a bankruptcy idea was floated out by Sirius/XM to not just push Charlie's hand, but the banks as well in terms of lending. SXM wants banks to realize that it will be easier to deal with them without the interjection of a judge for every monetary transaction if they have to file bankruptcy. Secondly, the bankruptcy will not result in closing of shop, but a restructuring where now those big contracts (i.e. Oprah, Mike Russo, etc.) can be dissolved and re-cooperate money. Bottom line: let's wait and see!

This just in! got an e-mail from allaccess saying that: The NEW YORK TIMES' DEALBOOK blog is reporting that SIRIUS XM RADIO is in talks with LIBERTY MEDIA about a possible deal to head off Chapter 11 bankruptcy and a possible takeover by ECHOSTAR.

ANY THOUGHTS FROM EVERYONE ON THIS POSIBLE DEAL?