Breaking news: Howard's company suing SiriusXM

GoodDog

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Oct 13, 2008
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Read that whole darned thing. This has been bubbling under the surface for 3 years now. If the original contract language is as 'plain' in counting subscribers not just buying satellite for Stern, but overall, and if the extra provisions under any merger contingency aren't explicitly in Siriusxm's favor, then Stern and Buchwald will be getting a settlement. Sirius had no confidence they could buy out xm back in '04. If they can agree on sub totals for the years in question (07-09) at the very least, the XM haul post-merger will be a large stock payout for him.
I agree. good post
 

GoodDog

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LOL That's true.....give him their monopoly money.

Seriously.....if Howard does win, or collect a big amount, how will the company recover the money?

They will have to raise sub prices, lay more people off, or both.

Not to mention when something like this happens, the stock price usually goes down. This company can't exactly afford their stock dipping again.
Sterns production company will buy Sirius. :rofl2:

The stock price has no effect on the company once the original public offering sells out the shares, the subsequent trade prices don't effect Sirius Inc except to indicate the markets confidence in the company.

Printing more preferred class shares to settle with Stern will dilute the value for others holding it.
 

kryptonite

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Oct 21, 2008
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So Howard wants to claim 20 million listeners, mainly due to the merger and thinking that all DM subscribers have Best of Sirius?

Fine, then Oprah, Martha, and O&A also get to claim that many.

The REALLY bad news for the 'Sponge? He REALLY got dog-piss jones, considering he had 20 million listeners!
 

Neigh

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Oct 16, 2008
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If Sirus moves for a summary judgment dismissing the lawsuit as a matter of law, there will be some very juicy affidavits and briefs. Early in this thread someone said that Howard never starts a lawsuit unless he knows he is going to win. When has he "won"?
 

Neigh

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Another thought. When Sirius acquired the XM subs, it must have also acquired the XM debt. It's like acquiring mortgaged property. I assume Howard doesn't think that makes a difference.
 

kingchuck69

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Oct 11, 2008
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I hope so. Sirius should be put out of its misery. The shitty app Howard has been promoting doesn't even work on 3G networks while the other Internet radio apps work flawlessly.

Stern and Stern alone controls the satellite radio industry.
It could be the phone. I have one of the cheapest smartphones on the market and it doesn't download the Sirius XM app.

I agree that in the end, Stern will win because after all, look at Sirius XM as a whole. They've made some bad decisions in regards to programming to attract people they think will climb over to Sirius. Oprah? Nope. Jamie Foxx? Uh-uh. How 'bout Martha Stewart? Really. I agree with Spokker that Stern owns this business. If he leaves, it'll die.
 

thekingofnicotine

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Aug 14, 2009
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So Sirius acquired XM? I don't get it then cause I always thought they merged out of necessity. If anything XM was doing better since they had about 5 million more subscribers than Sirius.
 

Biaviian

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Nov 17, 2008
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Another thought. When Sirius acquired the XM subs, it must have also acquired the XM debt. It's like acquiring mortgaged property. I assume Howard doesn't think that makes a difference.
That doesn't make a difference. The agreement was based on subscribers. According to the agreement Howard is 100% correct; they shorted him. Read the entire lawsuit and you will understand how Sirius screwed them and why the XM subs should count.
 
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voliconjoe

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So Sirius acquired XM? I don't get it then cause I always thought they merged out of necessity. If anything XM was doing better since they had about 5 million more subscribers than Sirius.
Remember back in the day when AOL and Time Warner merged it was really AOL buying out Time Warner. How does AOL have more than Time Warner I have no idea but that's what happened.
 

Neigh

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That doesn't make a difference. The agreement was based on subscribers. According to the agreement Howard is 100% correct; they shorted him. Read the entire lawsuit and you will understand how Sirius screwed them and why the XM subs should count.
I have been through all the posts again and I keep missing the actual contract. Is it posted? I would withhold judging the merits of Howard's suit until I read the contract and an argumentative memo from the other side. It would not have become a law suit if the other side thought the contract was black and white in Howard's favor. Interesting that Howard is represented by an old time WASP firm (its founder was Gov of NY 100 years ago and a Supreme Court Justice) It's still prominant and its partners are probably all races and religions now.
 

Biaviian

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The contract hasn't been posted but the suit was. From my knowledge of the contract, the verbiage in the suit is correct.