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Discussion in 'DIRECTV General Discussion' started by MRinDenver, Feb 7, 2009.
So, now that Charlie has purchased XM, I wonder how that will change DirecTV's music offering?
Are you jumping the gun in declaring DISH the owner of XM?
That seems a bit strong of a statement. All that I can find is that Echostar has purchased some of the debt, leading to speculation they might be making a play for control.
Without government approvals, I don't think they can actually take control should they acquire enough of the debt later on.
This is purely speculation as they have not purchased it yet, but if Dish does purchase them I would think that the contracts in place would play out.
There is no saying that it could not be run as a separate company anyways and Directv would just continue buying access as they do now.
Since the OP is in CO, as am I, I presume he saw the same story I did, in Friday's Rocky Mountain News.
The subhead was "Douglas County giant buys satellite radio firm's debt in possible takeover strategy." The operative word here is possible. Charlie ain't got nuttin' so far but a note for <$300 million. OTOH, that debt matures on the 17th of this month. If SiriusXM can't pay, then we'll see...
Well, even if Charlie manages to obtain control, he has to purchase liabilities, assets AND existing contractual relationships. If he tries to cut Directv out of their existing contract without abiding by any pre-negotiated termination clauses, he'll be in breach of contract. Further more, under the laws of some states, even if he's willing to pay the damages for breach of contract, he might be subject to "exemplary damages" provisions - sort of like punitive damages for commercial and consumer protection - especially since he owns Directv's most-direct competitor.
It's very possible that Echostar has no interest in the Sirius XM service and is just looking to gain control of their assets in a bankruptcy proceeding. The satellite slots, bandwidth, terrestrial repeaters, etc. have value...and that may be the target now the actual service.
They only have value for direct-to-user satellite audio use, per their FCC license. Even if they buy Sirius XM to gain those slots, etc., they still have to use those assets in the manner for which they are licensed.
Well, I say if you own a man's debt, you can call his tune. Or tunes, as the case may be.
Tell me why he wants the debt, if not to exercise eventual control?
This discussion is why I started this thread.
Nothing in Charlie's background indicates he is a passive owner of anything.
That isn't a judgement, just an observation.
No they dont. The government can change the licenses if requested. I think hes after more HD bandwidth to catch up with Directv and cable.
I wouldn't expect it to.. Charlie is more than willing to make money even if it means the fees are being paid by a competitor.
Frankly I don't think it much different than Comcast providing sports channels to Dish and Direct. It's only a subscription.
No he does not.
If there is a default on the debt, he can force XM into default. After that he can take control of the ASSETS as he pleases. He assumes no liability for any other XM liabilities.
This assumes the debt he has bought is senior debt and not subordinated to other debt.
This is the same as the mortgage company taking back a house. In doing so they do not assume liability for a car payment.
From the same article I quoted earlier:
"The Wall Street Journal reported Sirius and EchoStar have "differently designed satellite systems that could be difficult to combine," but that Sirius has some facilities on the ground that could be beneficial to EchoStar."
I'm just waiting for the throwdown between Ergen and Malone...
I am by no means a rocket scientist (which I'm sure will be evident when you read the rest of the post ), but my initial thought when reading posts about the speculation of Dish doing this as a lead-in to gaining their satellites, two things crossed my mind.
1) Are the satellites that Sirius/XM have in orbit even usable for satellite television broadcast, and is the current in/on home dish/receiver system capable of using signals from those sats? and
2) Seems to me when I was researching Sirius versus XM years ago when I first bought in, Sirius used what was referred to as a 'figure 8' kind of thing where the sats weren't really geo-stationary like the TV service sats are. XM's was geo-stationary, Sirius was not. I wound up going with XM for that reason, as well as the fact that Sirius had Stern and XM had MLB.
Did I read that DirecTV just turned off 3 XM Sirus channels? Is this related some how?
Nope. The provider (NOT XM) ceased providing them to XM, so they are no longer available to D*.
It would mean nothing to me, I can't remember the last time I listened to one of the channels. It probably would mean nothing to the majority of the DTV subscribers if they were cut off. Maybe an issue only at the holidays?
These channels were internet only. They haven't been on XM for many months, even pre-merger