Just read a story that says, based on a study of the Sirius XM merger papers, XM is considered a subsidiary of Sirius. Thus, the theory is that Sirius would bankrupt its subsidiary to free itself of XM's debt. That would allow the parent company to remain intact, and protect the stockholders.
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Subsidiary bankruptcy
- Thread starter TheBigA
- Start date
They will not have to although all Sirius' debt is in a holding company that keeps Sirius safe as I explained in another thread yesterday. Tomorrow you will hear that John Malone has given Sirius the $175 million it needs now and will take over the debt it has to pay for XM at the end of the year. All is good.
Good catch and info on the Subsidiary bankruptcy. This makes sense. I am sure Uncle Mel had this all planned from the beginning and was prepared if they ran into financial problems.
Still not sure about the Liberty to the rescue. Waiting to see what happens in the next 72 hours.
I do agree all will be good for Sirius.
Still not sure about the Liberty to the rescue. Waiting to see what happens in the next 72 hours.
I do agree all will be good for Sirius.
No need to wait Jasper, the deal was done with Direct TV on Friday. They will bridge loan the 175 million and take on the rest of the debt effectively taking any potential for Dish to come in slim. I'd much rather see the Malone association than Echostar so am relieved.
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Walking On
Guest
DirecTV just sent out emails indicating that they are raising our rates. So glad that the subscribers of DirecTV could help in the Sirius matter...
(It's good to at least know where the money's gonna go
)
(It's good to at least know where the money's gonna go
)Too bad the increase in DirecTV has nothing to do with Sirius. It was in the works for some time and reflects new charges from suppliers. The pricing may be a touch higher than typical cable operator increases in 2008, but is below the price hikes announced recently by Verizon for its FiOS TV service. Dish Network plans 7.5% and 10% rate hikes on its lowest tiers, but prices are rising only by 3.8% and 4.6% for Dish Network's upper tiers. All packages (except FAMILY) will be going up $3 but Premier going up $5 on 2/27. HBO up $1 to $14. Customers that were new to DIRECTV between Feb 26 '07 & Feb 26 '08 will be price protected for 12 months from their activation date. DirecTV is still a pretty good deal and beats most all cable companies prices.
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Walking On
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Ah, so the DirecTV subscribers haven't helped out in the Sirius deal yet. That's good to know, too. 8)
With $17 bil in assets, I don't think Directv is hurting. Although I do remember when they started, everyone said it would never last just as they try to do sat radio.
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Walking On
Guest
Kind of my point. if they aren't hurting, why increase rates on a luxury in tight economic times? One of the things that Sat TV has always had over cable (besides access) is pricing. I'm confused where increasing the price structure will draw in more cable subscribers, or even keep the ones you have currently? The growing customer base should have enabled lower pricing, thereby growing an even larger customer base. Corporations... ya' gotta luv 'em. :-X
It's easy for you to say....yes satellite has better pricing until you consider the lack of internet service. Wild Blue for Direct TV is not cheaper then Comcast, plus download speed is considerably slower. Direct Way was worse. I would go back to Direct TV if they had a package phone, internet,TV service plan. That's where Comcast has me by the balls, when it comes to dropping their stinkin' 100 cable channels, your internet goes up by $15.00.
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Walking On
Guest
I used to have both DirecTV and DirecWay. It was great when they were under the same corporate umbrella. I pulled my tv off of the two-way dish, and while the upload speed wasn't the best, the download speed was screemin', so it was great for all but on-line gaming (which I didn't do much of). When they went their seperate ways, things started going down hill. Eventually I had to have seperate dishes along with the seperate bills. Bad for Direcway was that as they kept "improving" the service (did you rean into the sarcasm there?), they kept raising the rates, my VPN wouldn't work even with the "Professional" service as they promised, and then my transfer rates started slowing down until it got rediculous. So bye bye it went...
Walking On said:
To many sat TV is not a luxury, it IS their entertainment just as cable is to others so while no one likes an increase, you don't wan to pay, you don't have to. But you better get out your rabbit ears. BUt with digital Tv even that is not easy. I honestly think digital Tv was compromised to keep cable companies in business. Imagine perfect pictures with an antenna. EVEN BETTER THAN CABLE, now just try to pick them up properly.
"It's easy for you to say....yes satellite has better pricing until you consider the lack of internet service. Wild Blue for Direct TV is not cheaper then Comcast, plus download speed is considerably slower. Direct Way was worse. I would go back to Direct TV if they had a package phone, internet,TV service plan. That's where Comcast has me by the balls, when it comes to dropping their stinkin' 100 cable channels, your internet goes up by $15.00."
Sat was never prepared for internet and lagged once the switch was pulled. But it costs lots to make a proper internet/cable system so sat is sort of happy. Verizon FIOS cost about 6 billion to start up. Make that back in a day with the paltry number of FIOS customers and rates. Through 2010 the company will pay an average of $817 to run the fiber past 19 million homes. It will also incur $172 per home passed in other costs related to the video infrastructure. About 40% of the customers passed with the service will buy at least one FiOS service. If you allocate the cost of running the fiber past the homes that don’t buy FiOS to those that do, that makes the cost of building the network $2,473 per home. And they will spend another $718, for equipment in the home and the labor to connect it to the network. There is another $130 in marketing expenses, and $576 for interest on money spent to build the network before it is completed. All this adds up to $3,897 in capital cost for every FiOS customer. At $60 a month, it will take you an awful long time to see revenue. As a comparison, the total stock market capitalization plus the value of its debt for Comcast comes to only $1,500 per connected home. So don't look at starting up an internet/cable service as cheap. It ain't.
Sat was never prepared for internet and lagged once the switch was pulled. But it costs lots to make a proper internet/cable system so sat is sort of happy. Verizon FIOS cost about 6 billion to start up. Make that back in a day with the paltry number of FIOS customers and rates. Through 2010 the company will pay an average of $817 to run the fiber past 19 million homes. It will also incur $172 per home passed in other costs related to the video infrastructure. About 40% of the customers passed with the service will buy at least one FiOS service. If you allocate the cost of running the fiber past the homes that don’t buy FiOS to those that do, that makes the cost of building the network $2,473 per home. And they will spend another $718, for equipment in the home and the labor to connect it to the network. There is another $130 in marketing expenses, and $576 for interest on money spent to build the network before it is completed. All this adds up to $3,897 in capital cost for every FiOS customer. At $60 a month, it will take you an awful long time to see revenue. As a comparison, the total stock market capitalization plus the value of its debt for Comcast comes to only $1,500 per connected home. So don't look at starting up an internet/cable service as cheap. It ain't.
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Walking On
Guest
Walter Graff said:
I know that to many it seems a necessity
, (especially the entertainment industry ), but entertainment is a luxury. I agree that OTA digital TV is comprimised, though I'm not convinced it was for Cable's sake. I think it's just another example of our government's expertise and aptitude. They needed bandwidth to battle terrorists and hurricanes and such, so they took it from TV. And in return gave us a barely adequate (but improved ) system in return. Again, a waste of such great possibilities. At least it's better executed than HD Radio. It is a great picture, if you can get it. The funny thing is, coincident with the start of our local digital transmissions, we also started getting wonderful digital dropouts of our local stations on DTV.Walking On said:
LOL Analog TV frequncies are being sold off for one reason, to sell the analog frequencies to the highest bidders. It had nothing to do with anything else. Money, payola and all the other stuff that goes with the government and selling stuff.
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Walking On
Guest
I'm sorry, let me fix my mistake:
"bandwidth to battle terrorists and hurricanes and such"
"bandwidth to battle terrorists and hurricanes and such"
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