WorldSpace Inc fka WRSPQ

[bepop12345]

Worldspace and SIRIXM

Posted by: WoodyDog (from SIRI board)

Date: Saturday, January 16, 2010 3:11:54 PM

http://www.kingofalltrades.com/2010/01/15/1535.html

by Steve Garcia -

With the recently announced closure of Worldspace Inc, (OTC: WRSPQ) operations in India and Africa, it is increasingly likely that Liberty’s (NASDAQ:LCAPA, NASDAQ:LINTA) intent is to go after the European market, a market with much more disposable income than India or Africa currently possesses. As written about at Rapid TV News by Chris Forrester, as well as “The Daily News Analysis” website – A Mumbai based Company by Praveena Sharma

Liberty Media has apparently done extensive due diligence on the range of possibilities and no doubt came to the same conclusion many have regarding “Worldspace” and its demise. There is not sufficient disposable income or interest in sufficient numbers in those areas of the world currently to sustain a healthy business model. It seems the speculation would lead to Liberty working on some sort of European and possibly South American/Caribbean Satellite Radio launch with help and expertise from Sirius XM Radio. Perhaps returning to India and Africa after the foundation gets stronger.
There have been claims that the deal for Worldspace assets has been finalized by Liberty, but none from US news sources, and to date, no filings from Worldspace or Liberty can be found regarding the alleged finalized transaction. As we await confirmation of the deal, is there even bigger news on the not too distant horizon, from both Liberty and Sirius XM Radio? What would a Sirius XM Radio or Liberty Media equity be worth if you added in European and South American subscribers to the business? Much more than its current value, one would think. There are many rumors circulating about these companies and the financial state of Sirius XM Radio in particular. Recent coverage initiated on Sirius XM Radio debt suggests the company is more than capable of servicing its debt and surviving.

With JP Morgan, Bank of America, Merrill Lynch and others initiating that coverage, the company has gained more credibility on the street. A recent article by the street.com was blasted, and put its writer in full retreat. So much so that she updated her story with comments from readers which were mostly supporting Sirius XM Radio. Others such as Zacks have continued to bash Sirius XM Radio and favor the once again media flavor of the month Pandora as the Sirius XM Giant Killer. This time with a 1200 dollar price tag for the supposedly free (only with limited listening is this true, an upgrade to premium costs minimum $3.99 per month) service in your car via what is really an overpriced Navigation system. I beg to differ, but a lifetime sub or two could be had for the price of this latest Pandora enterprise with change left over after equipment purchase. The true reasons behind all this Pandora love in my opinion lay in their looking for a suitor. A company which makes only 40 million dollars a year and pays 30 million of that in royalties is like that ugly dog with fleas you once tried to take home to mom. It was a bad idea then and it’s a bad idea now. I have nothing against Pandora but it lacks the content and special programming I have come to love and count on with Sirius XM. I wish them luck in trying to flea dip that dog, looks like they are not going anywhere for a while; may I suggest a snickers bar?

It’s been a while since I have written an article on SIRUS XM Radio. Since the next big battle over this stock is being waged, with the anticipation of Q4 numbers that will surprise to the positive, I thought I would just give my 2 cents. Best of luck to all shareholders, and I am looking forward to some juicy information soon to share.

Disclosure: Long SIRI