Sirius XM Holdings Inc (SIRI)

[PennyHeaven7]

NEWS out Sunday 2-21-10- SIRIUS XM Will go Global.

I for one will be buying more on Monday with Sundays news. $$$$

Good luck to all Longs with patience, this Rocket is just on the Launch Pad, it has not taken off fully yet to go WorldWide. Shorts read and weep!!
http://www.rapidtvnews.com/index.php/201002215924/sirius-xm-will-go-global.html

Sirius-XM will go global
Written by Chris Forrester
Sunday, 21 February 2010 11:08
There now seems little doubt that Sirius-XM will soon launch a near-global pay-radio service. There are simply too many clues to ignore, and more might well emerge from Sirius-XCM’s quarterly financials this week. Indeed, some industry observers are suggesting that Worldspace will not only rise from the ashes, but could be the vehicle that emerges as owner of Sirius-XM!!

The Worldspace assets of two orbiting satellites are key to Sirius’ global expansion. On Thursday Feb 18 a hearing took place at the Delaware Bankruptcy Court to hear various submissions to wrap up the Worldspace Chapter 11 bankruptcy. Worldspace’s main lender (and saviour) is a Liberty Media subsidiary (Liberty Satellite Radio). And of course it is John Malone’s Liberty Media which – in effect – controls 40% of Sirius-XM.


Coincidentally, at the same time in another nearby Delaware courtroom there’s a Class Action law suit taking place where some disgruntled DirecTV shareholders are chasing Malone over an alleged bit of shady activity over the structure of the Liberty/DirecTV acquisition.


Two days prior, on Feb 16, Judge Peter Walsh approved a motion whereby Liberty kicked in another $2m to help keep Worldspace afloat during this final transition period. On Feb 19 a document was filed with the court setting down March 5 as what looks like the final date for the long drawn out Chapter 11 bankruptcy.


The end result is that the emergence from Worldspace’s Chapter 11 position is imminent. The relationship between Liberty and Sirius is clear. Moreover, Sirius’ CEO Mel Karmazin has as good as confirmed that Sirius has ambitions well beyond North America. Liberty’s Greg Maffei has also agreed there is a global plan, and it would seem that Worldspace is going to play a major part in that strategy.


One suggestion, from Satwaves’ Brandon Matthews is well worth a read. He says: “Liberty Capital recently created Liberty Satellite Radio, in which it transferred its newly acquired Worldspace assets. Through this subsidiary, Liberty could buy Sirius XM, and a new parent company would emerge. Shareholders would likely be bought out for cash or a stake in Liberty Capital. The preferred stake of Liberty could then be spun off to the new Satellite Radio company, avoiding a taxable event. An IPO of a debt free, cash flow generating Liberty Satellite Radio could then follow.”


Mr Matthews’ suggestion sounds just like the sort of deal John Malone would construct. And he has the cash. On Feb 19 Liberty Global wrapped up its exit from Japan’s Jupiter Telecommunications (J:COM) cable company, selling its 37.8% stake to KDDI. The upside for Malone is a ¥363bn return, or $4bn, and all in cash.


But also dig into the Sirius small print and there are other enthusiastic global supporters at play. For example, car maker Ford, amongst others, favours the idea of global models. Same with GM as well as players like BMW, Mercedes, VW/Audi and Toyota, Nissan and the rest.

But no doubt we will all know more once this coming Thursday’s (25th) back-to-back earnings reports are delivered from both Sirius-XM and Liberty Media.


© Rapid TV News 2010


Sentiment : Strong Buy