Liberty media plans move to take over Sirius XM board

Discussion in 'SiriusXM Soundwave Cafe' started by Jon, May 31, 2012.

  1. Jon

    Jon Well-Known Member

    Liberty Media plans move to take over Sirius XM board - Denver Business Journal

    Liberty Media Corp. plans to use its ownership stake in Sirius XM to take over the board of the satellite radio company, which Liberty rescued from bankruptcy in 2009.
    On Thursday, Liberty Media, led by media mogul John Malone, said in a filing that it intends to call a special shareholder meeting and try to seat its candidates in a majority of board seats Sirius XM Radio Inc.
    Douglas County-based Liberty Media has been pressuring Sirius CEO Mel Karmazin to conduct a Sirius share buy-back that leave Liberty owning a majority of Sirius common stock.
    Liberty Media wants the ability to spin off its Sirius XM stake into a free-standing company in a tax-free transaction known as a Reverse Morris Trust. Such a spinoff would require approval of Sirius XM’s board.
    Karmazin told Sirius shareholders earlier this month that he wants Liberty to pay a premium for seizing control of Sirius, according to Reuters news service.
  2. HecticArt

    HecticArt Administrator

    Timely. Interesting things are afoot at the Circle K.

    Sent from my DROIDX using Tapatalk 2
  3. Jon

    Jon Well-Known Member

    Karmazin is a dead man if this goes down. It'd be interesting to see if John Malone would be able to run the company any better.
  4. HecticArt

    HecticArt Administrator

    Run it better from a management standpoint or a programming standpoint?

    Mel seems to have gotten the business end in order. That may be in part due to the FM style of programming that a lot of people aren't fond of, but as many have noted here, it's what sells commercially. So why there might not be as much variety as some of us would like, it may be part of what has been increasing the number of subscribers. Kind of a catch 22. Maybe.
  5. Jon

    Jon Well-Known Member

    I think more from a programming standpoint. He is closely associated from the old days at Viacom and like it or not is associated with the beginning of the end of terrestrial radio. There would be a big emphasis on costs, like the NFL and MLB radio contracts, and of course the biggest weight, Howard Stern's contract for working 3 days a week.
  6. voliconjoe

    voliconjoe Well-Known Member

    I say it's a good time to buy some sirius stock. If this guy takes over they immediately become cash flow positive.
  7. Jon

    Jon Well-Known Member

    It just dawned on me, Liberty is based in Colorado. Which means if Malone succeeds, Sirius will be a local company.
  8. HecticArt

    HecticArt Administrator

    They currently are.
    But more positiver is more betterer.
  9. Wolf

    Wolf The Lone Wolf

    I saw this on

    Liberty’s Greg Maffei Appears On CNBC - SiriusBuzz

    Liberty Media (NASDAQ:LMCA) CEO Greg Maffei appeared on CNBC and gave some insight into the recent developments with regard to the Liberty stake in Sirius XM. Raher than attempt to paraphrase what was said, here is the transcript:

    CNBC – Nice to have you here and have you come down to the floor. Let’s start off with Sirius, it’s been in the news. Yesterday, in fact, ready to go back to the FCC and why do you want to take control? And what would you do differently if, in fact, liberty does take de facto control of Sirius satellite radio?

    Maffei – As you pointed out, this is only de facto control, which is only how you’re able to exercise the rights that you have. How we’re allowed to use those rights under the sec’s rule rules. We’re just going to go through a regulatory process to exercise the rights that we have.

    CNBC – And, if you get those rights, is there something that you would do differently that’s currently being done?

    Maffei – Well, we think Mel (Karmazin) and the team there have done a great job. Business has been performing well, so we’re very happy with all of that. Liberty makes its weight and thoughts known, but in general, we’re very serious.

    CNBC – Something else that you’ve been enthused about is the $6 billion gain. The greatest investment probably of all time. You came in when the company was close to bankruptcy. Many people think that you’re going to pursue a Reverse Morris Trust basically a way to spin it off to shareholders in a tax-free manner. Is that the case and is all of this just posturing to agree to allow you to pursue?

    Maffei – I’m not sure where we’re going with the investment. We’ve said there are two logical paths for us. One is to go in control, the other is to pursue a Reverse Morris Trust the way did with Direct TV and ultimately be with our shareholder’s hands. I can’t tell you which way we’re going to go. If i knew, I would tell you. We think Sirius is a great company. It has a lot of potential going forward. and we’re not in a rush to make any decisions.

    CNBC – It’s also going to start spitting out a good amount of cash flow, correct?

    Maffei – Absolutely. Satellite money has been spent, leverage is coming down, and, as it’s been noted before, a large NOL (Net Operating Loss) position. So it’s going to spew a lot of free cash.

    CNBC – Now, there’s some speculation that you’d want to take your stake up to 80%? Is that the case?

    Maffei – I think that’s highly unlikely. We tend not to want to pay top dollar for the last share. In addition, all of those NOL’s are going to be used by Sirius.

    CNBC – Are you sick of being a manager? Rumor has it you are tired of that.. I don’t even know if it’s accurate.

    Maffei – I can tell you it’s not.

    CNBC – Would you want to get rid of Mel (Karmazin) if you took control?

    Maffei – No. We want to keep Mel involved.

    CNBC – Then why not just go along with whatever you want to do?

    Maffei – You’ll have to ask Mel (Karmazin) that.

    As you can tell, there is a lot of posturing happening. While a lot of cards are being shown, certainly Liberty could take any of several paths to get to where they want. The bottom line is that it is obvious that Liberty likes what they have in Sirius XM and is excited about the prospects of Sirius XM as a company.
  10. Super Dave

    Super Dave Member

    Still looks like Mel wants out...

    FMQB: Radio Industry News, Music Industry Updates, Arbitron Ratings, Music News and more!

    Mel Sells 7.6 Million More SiriusXM Shares

  11. Super Dave

    Super Dave Member

    Liberty is still moving ahead, full speed.
    Liberty's John Malone Says Sirius XM Will Be Independent If He Takes Control -

  12. semipenguin

    semipenguin Cheeseburger Connoisseur

    Redstone. Moonves. WTF? :scatch:

    Sent from my HTC EVO 4G using Tapatalk 2.0 :)
  13. voliconjoe

    voliconjoe Well-Known Member

    should've bought the stock when it was 35cents...
  14. limegrass69

    limegrass69 Confused

    Sounds like a bunch of rich dudes with small penises on an ego trip.
  15. Jon

    Jon Well-Known Member

    Wonder if Malone would do any better with the programming than Karmazin and his cronies have.

    Sent from my iPhone 4S using Tapatalk.
  16. jef

    jef Power Pig, Hello!

    Sums up pretty much most of Wall Street and corporate America. And politicians.
  17. voliconjoe

    voliconjoe Well-Known Member

    It won't cost Sirius nearly as much. Mel and Co are money whores that add nothing to the company and take lotto winnings home for their troubles.
  18. blyons200

    blyons200 These pretzels are making me thirsty.

    One could only hope. I think the programming gotten worse every year I've had it.
  19. microbob

    microbob Well-Known Member

    Direct TV does spend money on original programming..So does Starz with their original shows. If that's any indication, I think SiriusXM will be better off with Liberty running the company.
  20. TSS Taylor

    TSS Taylor DRC Fan

    Get this over already. I can't wait for a top management change up. It's always a good way to mix things up.

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