Sirius XM being stalked by Dish?

[jdmacor]

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.. ....

He doesn't have to buy the shares. He can buy the debt, and then wait for the company to file for bankruptcy (soon enough), and then his debt claims, which obviously will not be paid back, will turn into claims on the company. He will receive shares for his debt, to put it simply.

 

[navychop]

Yep. Or most/all assets are turned over to him. That might be more lucrative than taking over the company.

Remember, buying the debt does not change the due date. Sirius/XM still has massive debt payments due this year- they just now must pay some of it to Charlie.

 

[HDRoberts]

I believe Sirius XM has 2 launches this year (one ILS and one Sea Launch), and one ILS launch next year. Charlie may want some (or all) of those slots for E14, E15, and Quetzsat-1, plus whatever they're launching to 86.5. That could be worth something to Dish. Granted, not enough to buy the company, but it adds to the business case. They could instantly add all Sirius XM programming to their packages, which would be a big plus. I won't buy satellite radio seperately, but if it could be cheaply bundled into my TV, I might go for it. I like it.

I also wonder if this could have anything to do with the Dish mobile TV initiative?

If course, technology would be incompatible as both use s-band. But perhaps future Dish satellites could include s-band transponders.

 

[steve4810]

What EchoStar Might See in Sirius XM

check it:

"EchoStar has acquired a significant portion of Sirius XM's maturing debt and could seize control of the company's attractive assets, according to reports.

EchoStar, which sells set-top boxes and was the former parent of Dish Network has acquired part of a $300 million tranche of Sirius XM debt set to mature on Feb. 17, according to The Wall Street Journal, which cited people with knowledge of the situation. "

Here's a link to the complete article story:
What EchoStar Might See in Sirius XM | Hardware | Financial Articles & Investing News | TheStreet.com

 

[goaliebob99]

This is being discussed here, http://www.satelliteguys.us/satellite-radio-forum/163847-sirius-xm-being-stalked-dish.html

 

[dfergie]

Merged

 

[Hall]

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

No. This story is about Echostar, not Dish Network.

 

[JosephB]

I believe Sirius XM has 2 launches this year (one ILS and one Sea Launch), and one ILS launch next year. Charlie may want some (or all) of those slots for E14, E15, and Quetzsat-1, plus whatever they're launching to 86.5. That could be worth something to Dish. Granted, not enough to buy the company, but it adds to the business case. They could instantly add all Sirius XM programming to their packages, which would be a big plus. I won't buy satellite radio seperately, but if it could be cheaply bundled into my TV, I might go for it. I like it.

I also wonder if this could have anything to do with the Dish mobile TV initiative?

If course, technology would be incompatible as both use s-band. But perhaps future Dish satellites could include s-band transponders.

If they already have satellites built and ready to go I don't think they would want to buy the company to use the launch slots for other satellites and then have the SDARS ones sitting on the ground. They could use the existing and future Sirius and XM satellites for mobile tv. Heck, they could use them for regular services by adding a satellite radio antenna on Dish installs for future services. The satellites just retransmit bits, so they don't have to limit them to just audio.

 

[lern4483]

Charlie is the Borg!

Resistance is futile!

 

[hrxtreme]

Coming soon: The HD Duo ViP SXM EchoMate Replay Sling Loaded 922 with Removable SDARS Module

 

[KenSoren]

Apparently so far the stockmarket looks at this as a good thing. The stock is up close to 23% at an astounding $.18 per share. I think the market is really digging for anything that can be interperted as "good news" to react to. We got suckered into this a couple of years ago and foolishly are still holding and waiting for something to happen.

 

[rocatman]

If they already have satellites built and ready to go I don't think they would want to buy the company to use the launch slots for other satellites and then have the SDARS ones sitting on the ground. They could use the existing and future Sirius and XM satellites for mobile tv. Heck, they could use them for regular services by adding a satellite radio antenna on Dish installs for future services. The satellites just retransmit bits, so they don't have to limit them to just audio.

Using the launch slots for Dish video satellites would not be a bad idea besides it is not like the current Sirius and XM satellites currently on-orbit are that old. Dish also has an S-band satellite of their own sitting in storage i.e., the one that was suppose to be used for China and the 2008 Summer Olympics.

 

[VinceT3]

Coming soon: The HD Duo ViP SXM EchoMate Replay Sling Loaded 922 with Removable SDARS Module

lol.. good one.. and most likely true as well! lol

 

[kstuart]

There are a number of synergies:

- EchoStar is experienced in running satellite companies for 20 years.

- The ability to "bundle" satellite TV and satellite radio could help competiting with cable TV and DirecTV.

- New channel provider deals to be used on the several video channel on SiriusXM, i.e. Toon Disney for the car back seat, etc.

PS Yes, it is amusing that SiriusXM stock has gone up ... people cannot read as far as the part in the articles where E* puts SiriusXM into Chapter 11 to lose all the stockholders and more of the debt...

 

[Sammy033]

Sounds like Charlie wants to takeover the world!!! But in all honesty, this is interesting... we shall see...

I just had this image of Charlie as "The Brain". *shudder*

 

[Jamey K]

I've have gotten phones today from couple of the on air types who work there, and they are more freaked about this than they were the merger. They are scared to death everything will go to automation with no live people anymore.

 

[ctownnerd]

I've have gotten phones today from couple of the on air types who work there, and they are more freaked about this than they were the merger. They are scared to death everything will go to automation with no live people anymore.

Good. SiriusXM's DJs suck. I was excited about the merger because I figured I would be able to get XM's music depth and channels (Lucy, Ethel) without annoying DJs like AltNation's madison, and that I would be able to get Opie and Anthony on my sirius unit. Only one of these came true. The annoying DJs are still there.
If I wanted to hear a blabby DJ announce what song was playing, or why their cat sits in a microwave, i would put on FM radio. If I want school closings and local news, I'd go to terrestrial radio or tv.
There's no point in having live DJs. Sure, people should be there to program the stations (a-la Muzak and DMX) but I don't need an irrelevant sack of hot air to waste my time and money announcing that coldplay sucks.

Just my $.02

 

[HDRoberts]

If they already have satellites built and ready to go I don't think they would want to buy the company to use the launch slots for other satellites and then have the SDARS ones sitting on the ground. They could use the existing and future Sirius and XM satellites for mobile tv. Heck, they could use them for regular services by adding a satellite radio antenna on Dish installs for future services. The satellites just retransmit bits, so they don't have to limit them to just audio.

I'm sure Dish would rather have Sirius XM satellites on the ground than their own satellites. Right now I don't get why XM is even launching a sat, as they have 2 on station from only 3-4 years ago, and 2 spares (albeit in not the best shape).

And I don't know that any of these launches gives a big bandwidth boost to support mobile video, but Dish's other satellites would certainly give a bigger boost for DBS bandwidth.

But again, this wouldn't be the only reason, just part of the business case.

 

[kc0zhq]

<conspiracy theory=on>
Doesn't Directv carry the XM channels? I have to wonder if the plan is to buy it up, let the XM half go under, and keep Sirius floating. Competitive advantage for Dish
</conspiracy theory>

(only half serious since I'm sure this would run afoul of anti-monopoly laws)

 

[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.