Sirius XM begins bankrupcty preparations

[Forrestandjen07]

Originally Posted by DetroitSportsFan

You're right, people get exposed to satellite radio with a new car purchase, and normally want to keep it. Car sales are down, so subscriptions are down. That happened to me a few weeks ago when we bought a new vehicle. Now I can't go back to FM.

HAHA yea, Lord How I hated FM radio

I bought Sirius for the home, Got two sportster 5 radios, One for my Gf and one for me

The Music, The Sports, So awesome.

I could do without all the male enhancement commercials every commercial brake tho, Is this like there only sponser haha

[Chordata]

I can't imagine going back to FM. Anytime I get in my wife's car and turn it on I want to murder someone. All the ridiculous "personalities," the crappy music, the commercials. Ugh.

I'd happily pay twice the amount I pay now for satellite. I realize they're filing (if at all) for restructuring and likely it's all a bluff, but I don't like the thought of it.

To the guy that said "fire Stern" -- first, that's not how things work. Second, he helped build whatever Sirius (and now Sirius XM) is. I originally got Sirius because of him, and I bet I'm not alone.

[fatediesel]

Stern has already talked about going back to regular radio next year when his contract is up so it likely doesn't matter whether he leaves now or then. The end result of this bankruptcy filing will Echostar (Dish Network) owning the company. It already owns a large stake of the company and wants to own it outright.

I remember a couple years ago thinking about buying a couple thousand dollars worth of Sirius stock at $3. I figured it would go up once it bought XM. I'm certainly glad I decided against that.

[Chordata]

Originally Posted by fatediesel

Stern has already talked about going back to regular radio next year when his contract is up so it likely doesn't matter whether he leaves now or then. The end result of this bankruptcy filing will Echostar (Dish Network) owning the company. It already owns a large stake of the company and wants to own it outright.

Stern has said, repeatedly, that he will never go back to FM. Also, he has 2 years remaining on his contract (i.e., through 2010).

Where in the world did you hear otherwise???

[fatediesel]

Originally Posted by O_V_N

Stern has said, repeatedly, that he will never go back to FM. Also, he has 2 years remaining on his contract (i.e., through 2010).

Where in the world did you hear otherwise???

I was wrong about him going back to regular radio. He said he's talking about retiring from radio. I don't really think he'd retire, but on the same note I wonder what he'll do if Sirius tries to get rid of him or can't afford to pay him what he feels he is worth.
Source: http://www.businessinsider.com/2008/...to-retire-siri

[Forrestandjen07]

Originally Posted by fatediesel

I was wrong about him going back to regular radio. He said he's talking about retiring from radio. I don't really think he'd retire, but on the same note I wonder what he'll do if Sirius tries to get rid of him or can't afford to pay him what he feels he is worth.
Source: http://www.businessinsider.com/2008/...to-retire-siri

Yea I wouldnt retire from his gig

4 days aweek of work
Millions of dollars in pay
10 weeks a year in vacation


Something tells me this thret of retierment is to try and get even more money from a company thats appearntly losing it faster than obtaining it

Retierment dosent make sense as long as he is still geting all of the above.

[Chordata]

Originally Posted by Forrestandjen07

Yea I wouldnt retire from his gig

4 days aweek of work
Millions of dollars in pay
10 weeks a year in vacation


Something tells me this thret of retierment is to try and get even more money from a company thats appearntly losing it faster than obtaining it

Retierment dosent make sense as long as he is still geting all of the above.

He has hinted at re-signing (not resigning) after the contract expires on 12/31/10, if they work with him and change up the schedule somehow. (For instance, I don't think he digs 4+ hours per day).

Sirius may ask him to restructure his contract, but they cannot simply "get rid of him." He has a contract and this isn't professional sports -- the contract will be honored, or he'll sue.

[fatediesel]

Originally Posted by O_V_N

He has hinted at re-signing (not resigning) after the contract expires on 12/31/10, if they work with him and change up the schedule somehow. (For instance, I don't think he digs 4+ hours per day).

Sirius may ask him to restructure his contract, but they cannot simply "get rid of him." He has a contract and this isn't professional sports -- the contract will be honored, or he'll sue.

Going bankrupt could possibly get get them out of the contract.

However, Liberty Media has agreed to invest $530 million into the company so it can pay some of it's debts in exchange for 40% of Sirius stock.
http://www.forbes.com/feeds/ap/2009/...ap6059582.html

[Ferris]

Originally Posted by O_V_N

He has hinted at re-signing (not resigning) after the contract expires on 12/31/10, if they work with him and change up the schedule somehow. (For instance, I don't think he digs 4+ hours per day).

Sirius may ask him to restructure his contract, but they cannot simply "get rid of him." He has a contract and this isn't professional sports -- the contract will be honored, or he'll sue.

I think the filing of bankruptcy gives Sirius/XM more leverage to require Stern to restructure his contract. I'm not positive, as I'm not a lawyer, but it would make sense. Contract or not, he is, afterall, an expenditure. I think he makes $100MM per year on his current contract. (5 years, $500MM) I think it's pretty safe to say that Sirius/XM won't renew his contract at that rate or more once his contract is up.

[Bigdog]

Originally Posted by fatediesel

Going bankrupt could possibly get get them out of the contract.

However, Liberty Media has agreed to invest $530 million into the company so it can pay some of it's debts in exchange for 40% of Sirius stock.
http://www.forbes.com/feeds/ap/2009/...ap6059582.html

Not a smart move considering the stock is worth basically nothing, almost to the point of being unlisted from the stock exchange.

[fatediesel]

Originally Posted by Bigdog

Not a smart move considering the stock is worth basically nothing, almost to the point of being unlisted from the stock exchange.

I think the goal of this move for Liberty is an eventual takeover of the company. They can't expect Sirius to be able to repay the loan with a 15% interest rate in less than 3 years.

[phlydude]

just remember that a portion of Stern's deal was stock...yeah, it might have been 500 million back when he signed but I don't think that the overall number at the end will be close to $500 million (unless he was given stock upfront and dumped them)