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Discussion in 'DIRECTV General Discussion' started by Colby, Feb 11, 2009.
Thanks for the link Dan.
+1. But don't hold your breath.
No Mel is safe because Liberty isn't buying Sirius XM outright it is just loaning it money and will end up with a stake in the company.
However, If I were the company that was going to give Sirius XM a lot of money, you can be sure I would be watching Mel and trying to help him. Obviously he needs all the help he can get because the deal STILL isn't FINAL yet :eek2: Can Mel not find his pen or does he not know how to take the cap off it
I hate to contradict your keen understanding of the satellite radio industry by pointing out that there is a reason that two people who are a lot smarter and a lot richer than you are fighting to get a controling interest of some or all of this "turd", and I'd suggest that it's not because Ergen and/or Malone are looking to throw hundreds of millions of dollars down a bottomless pit.
I don't understand a lot of this myself, but apparently there are things that can be done if a company has both Sat. TV and Sat. Radio. And I agree with you Ergen and Malone wouldn't be going at it, if it wasn't important.
That explains all the mobile radios in cars and trucks that are competing with Sirius XM and providing their programming to those radios via that "decent broadband connection".... oh wait..... :nono:
Cute, but there are actually very few men who (even when you include his current Sirius XM problems) on the whole of their career have been more successful in the broadcast industry than Karmazin has been. Karmazin didn't do anything wrong that put satellite radio in the position it is in now, he's just trying to deal with a lot of debt and other factors that he didn't cause and has little control over.
I made the post that was being responded to and what I was talking about was why hadn't Mel signed the deal with Malone yet? When Mel was the one who asked Malone to help him. And Mel still HASN'T signed the deal!!!!!!!!! The papers have the words down to "expected to before the stock market opens today".
Gee there isn't a lot of time left now. I don't see how Mel can do anything else except take the offer from Malone. So take it Mel I'm getting tired of :beatdeadhorse: already.
Although it is a reasonable assumption that these guys have more money than any of us forum members, I don't recall you testing us for intelligence.
The two men referenced are obviously not smart enough to be happy with the vast fortunes they have already amassed, so your point is debatable.
With two interested parties, maybe he's watching the bidding war progress and trying to decide where the threshold is going to be before signing a deal.
Billion dollar deals don’t happen over night…I don’t think…:scratchin
I think it makes perfect sense.
Neither is going to take on all that extra debt without some probability of a payoff.
If I assume the size of any bonuses they receive is contingent on company performance then wouldn’t that imply that they would want to make sure the performance is good a possible.
Notice I’m not saying anything about their ability to do this.
It would seem to me that sat radio could make a good addition to sat TV service.
Get some basic stations and, for an additional fee, some further packages. This could increase sat radios listenership (is that a word) which could increase revenue
The question is what could sat radio offer and how is it to be delivered. Will a DirecTV receiver be limited to watching TV or listening to Sirius-XM? Could there be an add-on (USB) module that would allow radio and TV viewing at the same time.
Will this be a service that will produce revenue and keep prices under control or will it be a money pit?
There’s a whole lot going on here that might necessitate changes to the typical sat radio business model.
Now I’ve gone and confused myself. :scratchin
Well, this is good news for Mel and bad news for anyone who hoped the programming on Sirius XM would improve. This will fend off Charlie, but it will leave Sirius XM as an independent company with Mel Karmazin as the CEO. IMO he has ruined the product, though the company would probably be profitable if it weren't for the current state of the credit markets & the automobile markets.
I seriously hope that they come up with a plan to integrate the two services soon, and I would really hope that they get someone to program the channels other than the apparent Clear Channel rejects they have in there now. Malone is in this purely to make money and maybe to piss off Charlie. He doesn't really have a grand vision of a vast satellite empire. Look for him to sell off this stake eventually, it'll never be integrated into DirecTV as it really should.
Charlie on the other hand would have integrated it into Echostar, slashed most of the costs out of the system, and gotten both services onto a unified platform of some kind. I'm sure there would have been programming changes but who knows if they would have been for better or worse. I still wouldn't be surprised if he picks up Muzak and still makes attempts to buy Sirius XM. At this point if I were him I'd start buying stock, since it's obvious his bonds are going to pay off.
Based on the perfromance of satelite radio so far, I am betting on the money pit option.
Satellite radio actually makes a ton of cash. The problem is they saddled themselves with huge talent costs. The satellites and uplink centers weren't cheap either, though it's widely thought that the content costs are what killed them.
If they could integrate with DirecTV or Echostar then they could share the operational costs of the satellites, uplinks, IT, HR, other back office, etc because those uplink centers can be reused for the TV side as well as the radio side. That, along with negotiating a more sane content cost structure would really help. Now that they're the only game in town, when it comes time to negotiate with the NFL, NASCAR, etc. they won't be bidding against each other. They can also tell Howard Stern to take a hike if he doesn't like the pay cut.
They're called "iPhones" and "Blackberries" . . . Perhaps you've never heard of them? :lol:
Regardless of who wants it, how smart they are or how rich they are, satelite radio has proven through results to be a "turd". It simply cannot compete with terrestrial radio. IMO, it will do nothing but harm to the business that tries to take it on. In the case of DirecTV, it would not increase the subscriber base appreciably and the incurred costs would have to be passed on the enitre customer base. The same woud apply to DISH, but their balance sheet is not nearly as strong as DirecTV's so it would have the potential to severely impact the long term viability.
That's a definite possibility.
I’m hoping for a better outcome.
IMO, there is some serious potential here and if done right can work rather well.
1) GM, Ford and Chrysler all make a "ton of cash" too, that doesn't make them viable.
2) The only thing common between satelite radio and satelite tv is the use of satelites. The technologies are completey seperate. There would be no sharing of infrastructure.
3) Those are all "Pay subscription" packages that would have to be negotiated for carriage. They would not be available on sat radio just because they are on sat tv.
If Malone isn't serious or should I say Sirius about Sat. Radio why was part of the deal that Liberty Media would have 4 members on the Board of Sirius XM? May be to keep their eyes on Mel