Confirmed: Echostar Is Buying Sirius’ Bank Debt, Not Convertible Debt; Aiming For Control?

20 Comments

Satellite TV provider Echostar (NSDQ: SATS) Corp. has been quietly buying up portions of Sirius Satellite Radio

20 Comments

Jack

OK , then how big would Rush, Hannity et al be. I am more interested in the model than the company.

chuck

Doug Emde doesn't know what he's talking about when it comes to Howards' effect on the company. It is well documented, if you care to research rather than just spout crap, that Howards entire 5 year contract cost was paid for by the massive number of subscribers that he brought on board. There are things Mel has done wrong but paying Howard wasn't one of them.

Jack Carpenter

What impact could passage of the "fairness doctrine" have on the potential for satellite radio…especially if several of the big names in talk radio cannot function within new guidelines established and move to satellite?

Tony Frazer

Mel screwed up CBS and jumped out with his $100 million + parachute. He is doing the same thing again here with Sirrus. Where will go next? Any company that takes this Jonah on to head up their business, gets what they deserve.

Doug Emde

As an early subscriber to both DishNetwork and XMRadio, now SiriusXM, I would welcome Charlie's ownership provided he keeps the music stations I want. Karmazin destroyed terrestrial radio through his mergers, and nearly so XMSirius through his costly suck up to H. Stern. Satelite radio is not only viable, but has a bright future once the right financial structure is achieved and correct target marketing formula implemented.

SouthernBeachGuy

Nicholas, good post…hope you are correct,
Tony, our Gov't doesn't care a bit about if you the small investor gets hurt. Look at BRLCQ. They got a big contract, got lots of investors and there money, then gave the contract to a sister company and filed BK. I would call it Totally fraud, but it was done and thought it is being fought in the Courts by investor, there is nothing left for Investors. The best that we have going for us is that Mel has millions$ of his own money invested and unless he has made a deal he will try to avoid BK. He should know now that everyone is watch to make sure no shenagians are going on between him and Echol to defraud the stock holders.

Optimist

I diffently feel this is a partnership for the long term. It doesnt make sense to put the company into bankruptcy because then all the contracts with the automakers would be in question. The long term future of sirius once the debt is cleared out is bright with unlimited up.

SilentP

@ new investor "whats goin to my happen to my stock if sirius goes in to bankruptcy"…BK in almost all cases means that the equity will be wiped out. Zero, nothing but wallpaper. Happens all the time, so don't think for a second that it won't happen here.

new investor..

im a new investor, and recently bought sirius stock when it was at 12 cents, whats goin to my happen to my stock if sirius goes in to bankruptcy and Echostar buys them?!? does that stock turn in to echostar stock, or would i just be given what ever the current market value was for the stock at the time of the bankruptcy? or is it some thing completely different? any help would be greatly appreciated. thanks…

GaryG

I still feel our goose is cooked. Sad the FCC and Clear channel are still haunting Sirius.

mark martin

nicholas has it on point….
this article (as the first one) is all full of unsubstantiated speculation.
don't they require any common sense to be a reporter or unnamed source? I guess not.

Moondoe

Kinda like Vegas on the roulette table….which color do you bet? Very stressful!
Bankruptcy(black), Good investment(Red)

TONY

Our government would never let Echostar own the SIRIUS XM bandwidth. They would make sure of that. The FCC would never allow it. The subscribers would all bail on Echostar.

I feel this is more of a partnership or some kind of deal….always the negative spin. All the information is not here yet, but there is enough to know it's not a forced bankruptcy or ownership.

Nicholas Vivona

Do you really think that the big institutional holders, such as Apollo Management, are going to just sit by and watch thier entire investment get wiped out? This is not just about the individual shareholders, this is about the big boys, which included Bank of America, JPMorgan Chase, Vanguard, Oppenheimer….so dont be so quick to believe that Charlie Ergen can just watlz in, pick up Sirius debt for pennies on the dollar, and walk away with billions of dollars in value, which is the actual satellites up in the sky.

Ron Mwangaguhunga

A very sound move. In this economic environment where Mel Karmazin spent much of the last few years cementing automotive deals for satellite radio and arranging the merger, Sirius doesn't look so hot.

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