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Re: [Swprograms] Slightly OT: For whom the bell tolls
OK, not off-topic but off-frequency?
I can see Ergen's interest. If I could raise the money, it would be mine, too.
What is the only asset they have that is really worth much? The satellites.
The problem with every satellite delivered service (think Iridium satellite
phones) over the past 30 years is the huge up front capital (cost) to get
satellites designed and launched. The cost per pound to orbit is so high that
it burdens the original owners with so much debt they never make a profit. A
bankruptcy that wipes most of that debt and the remaining stockholder's equity
out puts the "new" owner in charge of a viable business. Ergen is well
positioned to profit if he can get the company cheaply enough.
The FCC dithering over the merger didn't help Sirius XM. It probably cost them
several billion in costs that might have delayed this longer but in the end the
two companies were right about one thing: neither would have survived without
the merger since the merged entity won't either; at least in its current form.
For all those broadcast opponents to the merger the arguments about how they
were unfair competition seem pretty silly now.
--
-Rob de Santos
Columbus, OH
From: Curt Phillips W4CP [mailto:robocurt@xxxxxxxxx]
Sent: Wednesday, February 11, 2009 11:57 AM
To: 'Shortwave programming discussion'; rdesantos@xxxxxxxxx
Subject: Re: [Swprograms] Slightly OT: For whom the bell tolls
This isn't really off-topic. Listening to XM is listening to really, REALLY
short waves. :-)
>From the article:
Mr. Karmazin bought two million shares of Sirius XM at $1.37 a share in August.
Before that, he had bought 20 million shares at an average price of $5 each. On
Tuesday, Sirius closed at 11.4 cents a share.
Hey, somebody whose stocks did worse that MINE did! :-)
I just got a car with the built-in XM capability and was wondering whether to
subscribe. I wonder how this will affect subscription rates. Raise rates, get
more money but you might lose customers. Lower rates, get more subscribers??
Since many (most, I'd think) of their costs are fixed, that might be a smarter
move.
73,
Curt W4CP
Raleigh, NC USA
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