SiriusXM Investor Relations News

Discussion in 'News & Announcements' started by SIRIUSaboutXM, Jan 7, 2014.

  1. IndustrialH

    IndustrialH "So much music .... so little time..."

    From Inside Radio:



    Did SiriusXM Radio pull a fast one on the major record labels by sneaking language into its settlement agreement with indie labels over pre-1972 sound recordings?

    That’s the question posed in a Hollywood Reporter story about the potential implications of the complicated, still evolving litigation over sound recordings made before Feb. 15, 1972, which aren’t covered by federal copyright protections.

    To remind about the specific language in the satellite broadcaster’s proposed settlement with Flo & Eddie: “The Parties agree that [the royalty rate] represents the rate that has been established by negotiations between a willing buyer and willing seller in a competitive market for Pre-1972 Sound Recordings, and shall be precedential in all future and/or pending proceedings (including rate making proceedings and arbitration) relating to sound recordings.”


    The worry expressed by the major labels and other stakeholders is that SiriusXM will use the 5.5% of revenue rate established in the settlement as evidence of what a willing buyer and willing seller would agree upon in the Copyright Royalty Board’s upcoming rate setting proceeding for streaming royalty rates for the period from 2018-22. SiriusXM currently pays the statutory license rate of 11%—double that of the settlement.

    In early March, prior to a hearing to decide whether the settlement gets a judge’s final green-light, the RIAA, SAG-AFTRA, AFM, SoundExchange and others submitted an amicus brief to express their concerns. “It is clear from the settlement’s face, as well as obvious marketplace facts, that the proposed royalty rate is well below the market rate for sound recordings, particularly classic sound recordings that are among the world’s most valuable,” the brief states, as reported by the Hollywood Reporter. “Far from having anything to do with the settlement’s economic terms, this language just gives SiriusXM fodder for future rate-setting proceedings—at the expense of copyright owners and recording artists.”


    SiriusXM responded to the filing by telling the judge that not one class member to the settlement filed an objection. “The reality is that class members want to share in the guaranteed multi-million dollar payout for past performances, and look forward to potential future royalties,” the satcaster said in its response. Besides, the major labels aren’t class members “and have no legitimate interest in this matter.” Their worries about creating an improper statuary license aren’t “legitimate, relevant or helpful” in assisting the judge in determining whether the proposed settlement is fair to class members, the SiriusXM response added.

    The dust-up stems from a November settlement under which SiriusXM agreed to fork over between $25 million and $99 million to settle a California federal lawsuit over music royalties for pre-1972 recordings. The satellite broadcaster and Flo & Eddie, leaders of ‘60s rock band the Turtles, reached a settlement just before the closely watched class action case was set for trial. SiriusXM also agreed to a 10-year license for recordings by parties in the class action suit at a 5.5% royalty rate. That could add up to an additional $45 million-$59 million, depending on how the satellite broadcaster’s revenue grows over the next ten years.
     
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  2. IndustrialH

    IndustrialH "So much music .... so little time..."

    SiriusXM Bids To Take SiriusXM Canada Private.

    SiriusXM Canada is going private, via a deal with U.S.-based SiriusXM Holdings Inc.—its biggest shareholder—and two of its top Canadian shareholders. The deal values Sirius XM Canada at about $367 million, according to Reuters.

    Sirius XM Canada's shareholders will receive C$4.50 per share in cash or SiriusXM Holdings stock for each share they own, representing a premium of 6.4% to the stock's closing price on Thursday.

    SiriusXM Holdings said it expects to pay about $275 million for the transaction, which will increase its stake in Sirius XM Canada to 70% from 37%, and give it ownership of 30% of its voting shares. Sirius XM Canada said the rest of its equity and voting stakes will be held by Canadian radio broadcaster Slaight Communications Inc. and Toronto-based private equity firm Obelysk Media.

    The Canadian Broadcasting Corp, the national public radio and television broadcaster, will no longer be a shareholder in Sirius XM Canada, said Jim Meyer, CEO of SiriusXM Holdings. The CBC was Sirius XM Canada's second-biggest shareholder with a 12.5% stake of as of Dec. 9, according to Thomson Reuters data. It will continue to support the company as a programming provider.

    "This proposed transaction shows SiriusXM's and Sirius XM Canada's commitment to serving the Canadian market with our leading bundle of premium content, much of which will continue to be created in Canada,” said Meyer. “The existing Canada-led governance structure will be preserved while vastly improving cooperation between the two companies on next generation products and services that will ensure a healthy future for satellite radio in Canada.”

    From Inside Radio
     
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  3. IndustrialH

    IndustrialH "So much music .... so little time..."

    SiriusXM Pays $480 Million For Stake In Pandora.


    SiriusXM Radio and Pandora have announced a deal in which the satellite radio operator will make a $480 million cash investment in the web pureplay. SiriusXM will pay $10.50 a share for newly issued preferred Pandora stock, giving the satcaster a 19% stake in the company. Pandora says it will use the cash “to make targeted investments and capitalize on opportunities to build on its position in the streaming radio business.”

    Separately, Pandora announced its sale of event ticketing service Ticketfly to Eventbrite for $200 million.

    Sirius XM is making the investment in two separate purchases—$172.5 million now and the balance at a second closing. The price is a roughly 14.2% premium over Pandora’s average stock price for the past 20 days.


    The deal caps a feverish few days during which SiriusXM reportedly attempted to buy Pandora outright but talks ended unsuccessfully over price disagreements. Negotiations reached a crescendo Thursday, the day when a $150 million investment announced last month by private equity firm KKR was set to kick in if Pandora couldn’t sell itself. By Thursday morning Pandora released a statement saying KKR and the streaming service had agreed upon an extension.

    Now Pandora has agreed to pay KKR a termination fee of $22.5 million to do the deal with SiriusXM.

    “This strategic investment in Pandora represents a unique opportunity for SiriusXM to create value for its stockholders by investing in the leader in the ad-supported digital radio business, a space where SiriusXM does not play today,” said SiriusXM CEO Jim Meyer, who has repeatedly said he’s not a fan of the streaming radio business model. “Pandora’s large user base and its ability to provide listeners with a personalized music experience are tremendous assets. With its strong technology and new product offerings, we believe there are exciting opportunities for Pandora to accelerate its growth and increase value for Pandora and SiriusXM stockholders.”


    On the other hand, Greg Maffei, chairman of the SiriusXM board and CEO of Liberty Media, which owns a controlling stake in the satcaster, has been more bullish on Pandora, reportedly making several attempts to acquire the streaming service. “Liberty Media has long recognized the strength of the Pandora brand and the opportunities in the ad-supported digital radio market,” Maffei said in a statement. “We are very supportive of SiriusXM’s strategic investment.”

    The investment will allow Sirius XM to name three members to the Pandora board, including one who will serve as chairman, increasing the size of the board to nine.

    “The investment from SiriusXM infuses resources to help Pandora continue to grow and innovate,” said Pandora CEO and founder Tim Westergren. “With the strategic review behind us, and a strong balance sheet, we look forward to focusing on business execution and the optimization of our strategy.”

    From Inside Radio

     
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  4. IndustrialH

    IndustrialH "So much music .... so little time..."

    Pandora Contemplates Future With SiriusXM Investment.
    To say last week offered a ping-pong match of shifting fortunes for Pandora Media would be an understatement. But with the dust having cleared only somewhat, the operative question this week is, “Now what?”

    Followers of the previously ongoing “will the streaming service find a buyer?” debate recall that June 8 was deadline day for Pandora. Its options came down to the resolution of a long yes-no-maybe outright purchase by SiriusXM Radio, controlled by Liberty Media Corp.; and if not, a $150 million influx of capital from private equity firm KKR, if no suitor stepped to the plate. There was also talk of interest from Verizon.

    As Inside Radio reported Wednesday, hopes were fading for a potential SiriusXM buyout of Pandora, sending the latter’s stock shares plummeting 7.7% to $8.75. By late Wednesday Pandora shares had fallen another 3%. But then, 24 hours later, Reuters confirmed in an exclusive story that SiriusXM “is seeking to invest in Pandora Media.”


    And that is what happened late last week: First, Pandora relayed that KKR and the streaming service had agreed upon an extension. Then Friday morning, SiriusXM and Pandora announced a deal in which the satellite radio operator will make a $480 million cash investment in the web pureplay. SiriusXM will pay $10.50 per share for newly issued preferred Pandora stock, giving the satcaster a 19% stake in the company. Pandora says it will use the cash “to make targeted investments and capitalize on opportunities to build on its position in the streaming radio business.” The price SiriusXM footed is a roughly 14.2% premium over Pandora’s average stock price for the past 20 days.

    On Friday, the impact on Pandora started to foster talk within the business community—and for a change it sounds good. Meanwhile, amid the fanfare, Pandora announced the sale of event ticketing service Ticketfly to Eventbrite for $200 million in an effort to “optimize shareholder value,” Pandora said.

    CNBC reported Friday that Pandora’s second largest shareholder, Corvex Management, with a 8.64% stake, is thrilled. CEO Keith Meister has been a perennial critic, insisting publicly and to Pandora CEO Tim Westergen that Pandora sell itself—or else. Bloomberg Business even weighed in on Meister’s fist pumping, with the headline: “Pandora CEO, Pressured to Sell, Gets Last Chance to Beat Spotify.”

    On CNBC’s “Halftime Report” Friday, Meister said, “I think there’s a huge new opportunity for a new Pandora 2.0.” The agreement is “a huge vote of confidence. Our sense is Pandora’s worth a lot more today than it was yesterday as a result of this transaction.”

    Tech Crunch suggested that SiriusXM will be a “strategic partner experienced in the radio business that might help steer [Pandora] to more growth in a very competitive market. The Sirius investment could give it a cash boost and also some economies of scale in negotiating those deals.”


    And Recode, in its analysis, said it is apparent that “Pandora needs help,” after getting into the paid subscriber business “long after competitors like Spotify and Apple Music had gained traction. Pandora is also competing with Google and Amazon, who can burn money all day long in pursuit of customers. Pandora can’t.”

    In addition, Recode believes the infusion also benefits SiriusXM, with a widely distributed user base—76.7 million people—that use Pandora almost exclusively on their phones. “That kind of mobile internet reach could be enormously useful to almost any consumer company, but especially Sirius, which delivers almost all of its music to listeners in their cars.”

    Tech Crunch added, “On SiriusXM’s side, it gives the company some differentiation in its business.”

    After the sale, Meyer said in a statement that SiriusXM’s investment in Pandora “represents a unique opportunity for SiriusXM to create value for its stockholders by investing in the leader in the ad-supported digital radio business, a space where SiriusXM does not play today. Pandora’s large user base and its ability to provide listeners with a personalized music experience are tremendous assets.”

    SiriusXM’s stock closed down 4% to $5.20 on Friday. Pandora, meanwhile, was up 1% to $8.52 a share after trading as high as $9.01 after the deal with SiriusXM was first announced Friday morning. So far this year, Pandora’s stock price has taken a more than 35% hit, Fox Business says.

    From Inside Radio Monday 12th June 2017​
     
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  5. IndustrialH

    IndustrialH "So much music .... so little time..."

    Oops....


    SiriusXM Is At the Centre Of Personal Account Snafu Case
    [​IMG]
    A SiriusXM Radio subscriber is suing the satellite radio company for allegedly mishandling personal account information and even suggesting the customer engineered identity theft of another subscriber with a similar name. In a motion filed in U.S. District Court in Central Illinois, William Viehweg contends that Sirius XM bungled account information for himself and another Illinois resident.

    “Defendant’s data policy is inherently reckless as it places no emphasis on data or account security,” the suit states.


    The plaintiff contends that he bought a Chevrolet Cruz from a local dealer in Illinois that came equipped with a SiriusXM radio and free trial and, when the trial period ended, he renewed the subscription. About a year later, unbeknown to William Viehweg, Harry Viehweg purchased a new Ford and activated a Sirius XM account. At that time, the lawsuit says, Harry Viehweg’s personal data was “recklessly, and inexplicably, entered into the plaintiff’s established account” and replaced William Viehweg’s credit card information with Harry Viehweg’s. After that, the suit details, Harry Viehweg started paying for both subscriptions.


    William Viehweg says he first became aware of some irregularities error when he contacted SiriusXM several months later to renew his own subscription. He says the representative informed him that the service had already been extended and Viehweg agreed to a longer plan, but assumed it was being billed to his card. William Viehweg says he only became aware of the mishap after his service was halted and he called to inquire. He ultimately renewed the plan.



    In the interim, the suit says, Harry Viehweg’s wife noticed suspicious charges on her credit card bill and called SiriusXM to inquire. At that point, William Viehweg alleges SiriusXM told Harry Viehweg’s wife that identity theft had occurred and she should call the police. After an investigation, the Illinois Madison County sheriff’s department concluded that: “the problem was not identity theft, but account management by defendant,” the suit says.


    “The defendant’s statements of ‘identity theft’ were borne out of a motive to cover up any such liabilities and to wrongfully influence the witness/victims Harry Viehweg and his wife,” the suit says.

    The suit contends such statements have damaged William Viehweg’s reputation and he is seeking a jury trial as well as $85,000 or more in damages and another $85,000 in punitive damages.

    From Inside Radio
     
  6. HecticArt

    HecticArt Administrator

    Crazy. It'll be interesting to see what happens.
     
  7. geosync

    geosync Well-Known Member

    85 bills seems low to me.
     

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