SaveSirius.org, a group of upset SIRI investors lead by Michael Hartleib (pictured), has posted an account of the recent shareholder meeting during which he was told by a source that bankruptcy plans are in the works.
According to Hartleib's account of the meeting, a many of those in attendance raised concerns over the state of the company and management.
"There were approximately 150 people in attendance," writes Hartleib. "I believe all but two were opposed to management and their actions. There was little or no applause during the meeting and, in fact, once the meeting ended it was dead silent. Mr. Karmazin quickly escaped back stage."
Members of SaveSirius.org came equipped with 16 banners, according to Radio Business Report. Eight of the banners urged a "no" vote on the reverse stock split (which was subsequently approved) and another eight banners promoted the group's website.
But, according to Michael Hartleib, the "most troubling part" was information that a "prepackaged bankruptcy plan" has been drafted and is ready to be filed. This information was obtained by "a reliable source" of Hartleib's. Orbitcast has not been able to corroborate this information, though concerns of Sirius XM going bankrupt have been mounting of late.
Mel Karmazin said he would not rule out bankruptcy, according to SaveSirius, but he noted that he does not think it would happen. Additionally, Karmazin said he believes the company will be able to refinance it's debt.
[via Stock Market Sundays]
"There were approximately 150 people in attendance," writes Hartleib. "I believe all but two were opposed to management and their actions. There was little or no applause during the meeting and, in fact, once the meeting ended it was dead silent. Mr. Karmazin quickly escaped back stage."
Members of SaveSirius.org came equipped with 16 banners, according to Radio Business Report. Eight of the banners urged a "no" vote on the reverse stock split (which was subsequently approved) and another eight banners promoted the group's website.
But, according to Michael Hartleib, the "most troubling part" was information that a "prepackaged bankruptcy plan" has been drafted and is ready to be filed. This information was obtained by "a reliable source" of Hartleib's. Orbitcast has not been able to corroborate this information, though concerns of Sirius XM going bankrupt have been mounting of late.
Mel Karmazin said he would not rule out bankruptcy, according to SaveSirius, but he noted that he does not think it would happen. Additionally, Karmazin said he believes the company will be able to refinance it's debt.
[via Stock Market Sundays]
Jeez... Would not shock me to know that Mel is ready to do this. Maybe they will ask for a bail out hand out (Hell, why not, everyone else gets one).
I am not bisiness guru and even I see how poorly Mel runs this show. There has not been ONE promise lept from the merger.
All of this is to set them up for price hikes, channel cuts, more commercials and talent being fired.
Just wait.
To all those who drank Mel's Kool Aide, Good call on the merger... FAIL ...
Hartleib's a paranoid idiot. Giving him any attention at all just encourages him.
Happy Holidays.
Guess there will be no saving Sirius.
Just read a little while ago about Moody's downgradeing SiriusXM.
I'm not a pessimist but.....it looks like the handwritings on the wall and the fat lady is one step from getting on stage.
I have been a subscriber to XM since Feb 2002 and own stock in SiriusXM. Noone was a bigger supporter of XM (and SatRad in general) than myself. I never agreed with either company paying out big bucks for "Mega-Stars". Keep it simple: play good music w/o commercials, provide quality information & entertainment. That's all that was necessary and let the base build. Too many starry-eyed "suits" got greedy and unsavory and now look where SatRad is at. I was TOTALLY against the merger. The FCC charter was for two satellite radio companies. Karamazin & his minions managed to B.S. their way into convincing a bought & sold FCC into seeing things their way. When that happened, my support for SatRad decreased. I have hoped for the best but now look what has happened.
I certainly appreciate the "OrbitCast" website owners & operators for providing great information since the merger and thank you again. I appreciate the messenger but sure hate the message.
I wish everyone out there only the best during this holiday season but Karmazin and his minions deserve switches & coal.
Leave it to Ryan to give this nutcase a Platform.
I hate to say it but the Genuineness that run SIRIUSXM have burned through cash they never had, and now revenues are way down(even less money) so tell me who will bail this dying company out? I wanted satellite radio to do well but the over spending on Stern and other ridiculous things have unfortunately sealed this company's fate. I do not see a bright future for satellite radio as the high overhead just to keep it running let alone see a profit. I just don't see it around in 3 years.
Thank you management for taking a great concept and running it right into the ground, enjoy that golden parachute as the ruins of another failed company smolder in the background. You the genuineness that you are destroyed another fine company.
Well there is always the i phone and internet radio.
SIRI will have no choice but to file bankruptcy, as the King of Nothing has sucked up every dollar he could.
Can't really blame him. I'd do the same for the worlds greatest part-time job, EVER.
Melvin is a failure as a human being, and a businessman.
As I said, 2-3 years life left, max. Satellite radio is already a dinosaur.
I don't know all the details but I would not be surprised to see Sirius/XM file for bankruptcy sometime in 09.
If Sirius XM files for bankruptcy, I will take my stock losses like a man, but I will cancel my subscription and never use or be a subscriber to Sirius XM ever again for sure.
I will simply use my I-Pod or other audio entertainment choices since there are many free one's out there.
I am angry and upset that Mel Karmazin has nearly bankrupted this company, and feel screwed royally since he has utterred nothing but encouragement to retail investors along this road to 99% down on my investment.
It will kill the 20 million subscriber base, since many of the 20 million subscribers are also retail stock holders who will also cancel their subscription based on principals and use other audio entertainment choices to excact revenge.
Mel Karmazin ought to know that bankruptcy will kill the company for good because you need subscribers to be viable even if you want to emerge from bankruptcy, and nobody will subscribe to this medium if they bankrupt it.
Nobody, mark this down.
There is NO DOUBT at all "Sirius XM bankruptcy plans "drafted and ready to file" They WILL be filed soon. It's all over and everyone knows it but the fanboys. satradio is not even close to the quality, the promise, it was when launched in 2001. The whole satradio industry screwed itself by paying celeb's huge amounts of money the down turn started before Howard Stern was hired and it has been on a downward slope ever since. Mel's "merge" scheme completed on July 29, 2008 was another nail in the coffin. Everyone is quickly learning paying for radio is silly, paying for monopoly radio is a no deal as huge amounts of subscribers are cancelling their subscriptions and churning away from this soon to be history mess known as siriusxm. Hugh Panero certainly had problems in running xm, but it's more than obvious with xm gone the quality and promise of satradio is gone.
Thanks for giving this idiot a platform. Once again, either he is revealing insider information or he is trying to manipulate the shareprice. IMO, it is the latter.
How exactly do you save a company by continually attacking it?
As a former XM employee, and one who left well before the merger was approved and closed, it was apparent to me that XM and Sirius, individually, were doomed to fail. Together, the result could be no different.
The excesses at XM were beyond belief. There were the country club memberships paid for by the company to TPC clubs; spending for talent that no one cared about; guaranteed payments to car companies for essentially no results to the likes of Porsche - and we're talking major payments here.
To add insult to injury, a former VP of XM gives an interview essentially flashing how much money she made in order to buy expensive clothes and shoes, al the while, the company was going down the tubes.
Here's that link:
http://www.washingtonian.com/articles/shopping/3814.html
While I believe Hartleib is spinning his wheels, at least he's saying out loud what a lot of people are thinking.
Will the company file bankruptcy? My guess is yes.
I just feel badly for all the people who thought they'd see their severance packages paid out.
It was good and fun while it lasted, although it really makes you wonder whether this was nothing more than a giant ponzi scheme of an organization.
Good luck and Good day.
Hartleib says:
"There were approximately 150 people in attendance," writes Hartleib. "I believe all but two were opposed to management and their actions. There was little or no applause during the meeting and, in fact, once the meeting ended it was dead silent. Mr. Karmazin quickly escaped back stage."
If there were any truth to the above, why did authorization for management's actions win by a margin of 3 to 1 - that's right - 75% of share votes cast went FOR authorization of management to issue more shares and do a reverse stock split, if it becomes necessary. Don't believe it because I say so - check the record - it is part of the public record.
Hartleib just lost the case he brought to civil court. Hartleib has his agenda.
Think for yourself - don't believe what Hartleib says, just because he says things.
Happy holidays to all!
Ugh... please... the point of the merger was to help XM & Sirius from going under, otherwise, why would they have done it? Tell me. Also, XM could have said no to the merger and so could have Sirius. The economy as a whole is hurting right. Obviously when two companies merger there are going to be some "growing/shrinking" pains, that is just a given. Once SiriusXM works out the kinks, things will be fine, just give it time and stop bashing them because they took away one of your channels, that is just going to happen, and they even brought a couple back that they removed because of subscriber plea. SiriusXM are not the first two companies to have a merger and they won't be the last. "Nature of the beast" stuff as they say. I am not a fanboy by any means, but to say that the service is "dying" is just not logical.
The only bankruptcy will be Hartleib and his ambulance chasing sidekicks who have done nothing but try to destroy Sirius for years. They will fail this time as well. Sirius is very close to break even and from there its a cash cow. I can't wait to hear Hartleibs excuse for not filing on Monday the end of the 20 days the judge gave him after bitch slapping him in court for his moronic accusations on December 8th. You can bet he won't be filing cause his Grassy Knoll theory won't hold water. Mel is cutting costs, Dealing with the Debt and Sirius will survive WELL into the future!
Actually the FCC charter was for 4 Satellite Radio licenses.
well remember - they declare bankruptcy and howard's contract is null - bubba the sponge's new contract is null - o&a's contract is also null. as well as MLB, NBA, NFL, NHL, martha and oprah. all contracts are out the window and can be renotiated. debt could clear instantly also. sirius XM changes its name to sirius sat radio and starts over with no baggage. might be better to start over and see where it goes from there.
Michael Hartleib's comments were made with no merit. There is no "inside source" that told him about BK plans. He is bitter about his case tossed from court so he has stooped to these childish antics. Making a statement like this will no doubt effect consumer confidence and lower the stock price.
I have already had a meeting with my lawyers today and they are drafting a class action lawsuit against Michael Hartleib and savesirius.org. Thank you for posting this article Ryan. I hope you dont mind us using it in court.
This stock manipulation will end and all parties involved will be held accountable.
I want to see the SEC, investigate our friend Hartlieb, because, how would he know Sirius has plans unless he is getting insider information.
why is this fool blaming mel for so much of this when it should be placed on the fcc and the justice department for delaying the merger for nearly a year. you know how many subscribers stayed away until a decision was made? probably a hundred thousand or thereabouts. you know how many possible subs are tied into new car sales? probably a few hundred thousand. and how many exclusive deals were signed before mel showed up?
from what i understand happened, mel was brought into sirius to help turn it around. so far i have seen no evidence that anything that he has done has directly hurt sirius. everything from merger being held up a year longer than it had to be to the car industry hitting rock bottom to the economy cratering all around us is NOT mel's fault.
hey former xm employee... my-chau still works for the company and that washingtonian piece was done shortly after she first joined the company. she was far from "flashing". yes it silly but i would not single her out as part of the problems you were detailing.
you want to site specific people i think you could name many of the TPC membership execs. although none of those guys are currently with the company.
CTK, this asshole is the reason why it was late, he brought up the interoperable radio. and said to one of the people at sirius buzz that a rep at fcc said if he didn't raise a ruckus we would of had an approval by Jan-Feb
"There were approximately 150 people in attendance," writes Hartleib. "I believe all but two were opposed to management and their actions. There was little or no applause during the meeting and, in fact, once the meeting ended it was dead silent. Mr. Karmazin quickly escaped back stage."
If there were any truth to the above, why did authorization for management's actions win by a margin of 3 to 1 - that's right - 75% of share votes cast went FOR authorization of management to issue more shares and do a reverse stock split, if it becomes necessary. Don't believe it because I say so - check the record - it is part of the public record.
*************
Simple. The majority of shares are likely owned by management themselves and those in favor of management's plans. You know, the whole 80-20 rule -- 80% of the wealth is owned by 20% of the people, or something comparable. Same applies here.
The problem with satellite radio and some of the big terrestrial companies can be summed up in one word - DEBT. If these broadcasting giants were able to fund their businesses using either just cash or very little debt, they would not be in this grave a situation.
Add to that the fact that younger generations do not like to pay for entertainment. Besides, broadcasting is lost to them, sadly. They are all on the internet... not playing with radios -- AM, FM, OR satellite. Broadcasting took the next generation for granted and now they have departed for greener media consumption pastures. Yeah, they are kids, but kids get older and become spenders of disposable income. Some of them are already there.
The Howard Stern move was justified. The man is arguably the most successful radio broadcaster in the history of the medium. He put Sirius on the map when XM was the top dog. But Martha Stewert and Oprah? Come on... they're not radio broadcasters, and certainly not at the same success level as Stern. They maybe helped bring in a handful of subscriptions, but Stern brought in millions of them. At the time, it was a brilliant move.
SiriusXM will declare bankruptcy. When Stern's contract is over, he will continue his show via his website only through streaming audio. He will finally own all aspects of his show, including the distribution of it. Streaming audio will be in cars in the next few years. Satellites in the sky will be as relevent as the AM and FM transmitters on the ground -- not very.
With all the alternatives available, a radio business (terrestrial AND satellite) finds it very difficult to compete. Add in the fact that they are way over their heads in debt, and that is the final checkmate.
It could have been different if they ran their businesses with cash. Debt caused them to pillage what they did have and in the process turn many people away from radio -- especially younger people.
Radio broadcasting (satellite and terrestrial) as we know it is on life support. Its death is imminent. Everyone has left for the internet.
I love my Sirius Radio and everyone I know who has it does not want to lose it. In our 50's and 60's spending hours commuting every day there is no better medium.
Give me Sinatra, Opera, Classical Music, Showtunes, soft music and BBC News all when I want them for that impossible commute.
My wife only wants these stations when we are driving together.
I think the free radio stations are boring offering the same old same old all the time.......with nonsensical repeating commercials.
I think Mr. K. has done a great job in building something new. There was a time when people thought cable TV would not go anywhere.
There is a whole world out there for Sirius XM that has not even been tapped yet. Yes, a whole world.........6 Billion people......How many potential subscribers?
Mr. K. has been a leader in his industry and has done many forward looking things that people could not see.
If it goes bankrupt, to bad for the stockholders and those that were piggish in helping grow the medium..........Sattelite Radio will survive and I for one will continue to support and enjoy it.
I will probably buy stock in the new company when it becomes available, and if things work out for the present Sirius XM, will probably buy the stock when it straightens out.
Great potential.........you don't need 6 billion subscribers.....
Actually the FCC charter was for 4 Satellite Radio licenses.
it'll be fun to see if king of all asslickers contract will be protected in chapter 11.it'll be more fun if it isn't though
Honestly, this guy is an idiot. Just look at the story on the from page of his site.
“I expect to win and lose in a fair game. I will never recoup this money because I am a paraplegic, handicapped and confined to a bed with complications. I can not go back to work. This deception is going to cause me to be shut-in to a nursing home. I will probably live the rest of my life in a nursing home remembering how Mel screwed me out of the financial independence that I needed to keep my living independence. I would like to also remember trying to fight back.”
Buying stock in a company is a GAMBLE. You win some and you lose some. If you sunk all of your money into the stock of a company that never turned a profit, YOU my friend are an idiot and YOU will have live with the consequences. Mel didn't do this, YOU did. Now make your bed and lie in it. Welcome to the game of life, YOU LOSE!
Also, people should remember that most of these deals on the Sirius side were executed by the brainiac that is Joe Clayton. Mel came in AFTER the ink was dry on those agreements. If you must blame someone start with that asshat Joe Clayton, then the FCC for their spectacular record setting delay of the merger, and then blame the downturn in the economy.
Anybody who thinks Sirius XM does not have a bankruptcy plan to reorganize is a fool. Every company that is in trouble has this plan if things get really bad.
A lot is going to depend on how many new subs get turned on over the next couple of weeks.
It is far from over folks, and Hartlieb is an absolute moron. Giving him a forum is ill advised. He is about to be involved in more litigation, much more.
I can't wait until Karmazin announces that Sirius-Xm has obtained their February debt financing, finally putting an end to all these rediculous BK allegations forever. Sirius-Xm now has one of the best CEO's in the bussiness running the company,slashing costs and keeping the company growing, even in this bad economy. That is what will save Sirius-XM in the long run. Hartlieb should take a hike, or make his "sources" known.
At least O and A and BTLS don't have all their eggs in one basket like Hoo Hoo. I'm not a BTLS fan, but it was a smart move. While they continue to broadcast on regular airwaves, Stern will be in the Hamptons counting his chimneys over and over.
the companys holiday sales this year will be next to nothing,everybody who wanted sat. radio already has it.no new subs equals no new revenue equals bigger debt equals chapter 11 sooner then later.i do hope o&a stay at cbs so they do have a gig and stupid howard is left there holding the bag looking like a douche.
happy new years to all you assholes who were pro merger
At least O and A and BTLS don't have all their eggs in one basket like Hoo Hoo. I'm not a BTLS fan, but it was a smart move. While they continue to broadcast on regular airwaves, Stern will be in the Hamptons counting his chimneys over and over.
I think it would be great for sat radio if they file for BK. Fact is SiriusXM is an authorized monopoly, so people who want to listen to satellite radio will still have to listen to them. There is already an agreement for what they have to pay for music royalities, something like 8 percent of revenue. So they have all the content they need. Add a few news station, keep their radio hosts that offer decent bang for the buck. Meaning dump Howard. Let whatever subscribers he claimed to bring to leave, he is not worth 100 million of cold hard cash a year. The state radio is in he won't be able to get even half that, and the he only works 4 days a week, and gets more than 3 months in vacation time.) If they dump NFL, MLB, NHL, NBA they will still have to renegotiate and there is no competing satellite company now.
Once SiriusXM reemerges from BK without the debt then they'd be a great takeover target.
Fact is bondholders and shareholders who invested in this loser company will suffer the most. Too bad so sad.
Mel has 28 million shares of SIRI stock. BK would wipe this out completely. BK won't happen. No way.
If they pull off the bankruptcy as gracefully as they pulled off the merger then they're screwed.
Satellite radio...it was (mostly) good while it lasted.
This is why I rarely visit this site. Its nothing more than a rumor spreading Rag. I get 10 times the information from Siriusbuzz and Tyler has class... not a rumor monger like this guy is.
Not only are you not a buisness guru, I'm willing to bet you didn't do well in English either.
The problems at hand are more a result of the FCC, NAB and Clear Channel. Had the merger not taken so long, Sirius would be much further along.
Going bankrupt is nothing. It protects the company from it’s creditors so they can reorganize their debt. If nothing else the company will reemerge from bankruptcy stronger! It’s really nothing to worry about.
What the f#%# happened to the interoperable devices before the holiday season? It took the FCC a record amount of time to approve the merger, so wouldn't you think the brainiacs that run the company would have had that device ready to go upon merger approval? If someone is thinking of going into SAT subscription market or is contemplating buying a new radio, don't you think they would rather wait and buy 1 radio that gets both broadcasts? No thinking!!! It should have been ready during that record long approval process!
This is ashame, and thats all I have to say!!!!
no. remember at the time that xm and sirius were two seperate companies at the time. neither had access to any of the others proprietary information until after merger closed. mel had said when the fcc finally gave approval that because it had taken so long to get this thing done, any interop radios were going to be introduced after the christmas season.
so once again, this is not something that you can throw at the face of mel. this is something that was caused by the horrific indecisisions of the fcc pushing back a decision that should have been made within a week rather than the several months it took.
Going bankrupt is nothing?
I'll inform Pan Am that it's okay, and they have nothing to worry about.
In SOME cases, going bankrupt is okay...but it's usually just a delaying tactic while the company attempts to pay the bills. A small percentage of companies that go into any kind of bankruptcy emerge from it and become stronger than ever. Most just disappear and are never heard from again. That's what is going to happen this time...and it's probably for the best.
I own two satellite radios (an XM and a Sirius) and have been a subscriber for over four years. In that time, and ESPECIALLY since the merger, almost everything "worth listening" has become completely unlistenable. It's nobody's fault but theirs that they're losing money. XM was the better programmed of the two companies, but after the merger it was completely gutted and there is little left of what was once so great. There is now no competition left, so Mel and the gang are not even going to TRY anymore. They don't have to. They won. We lose.
Is there no way to audit/verify the voting results? With so much opposition to the reverse split and other factors, how can we be sure the results weren't rigged?
As Scarface would say,"Say hello to my little friends,Disney,Microsoft,Rupert,Carl,GE,and Google!!"
Stern saved Sirius. It would have disappeared years ago without him. Why do you suppose their subs went from 600,000 from their incarnation to 8.5 million or so? Their quarterly growth just suddenly spiked I suppose. The wasted money was spent on non-radio talent : Oprah Winfrey, Martha Stewart, Eminem and Jamie Fox were/are all worthless. Oprah and Martha's type of product could have been done without their high priced names. Aqcuiring these no shows was absolutely stupid, expensive and meaningless, except that they're all a waste. How many subs do you think non-radio names bring to a product that receives every dollar from people who have more than the average appreciation for all things radio. Simply because you are not a Stern fan, to not acknowledge his influence on the sudden change in Sirius sub numbers is foolish. Please explain why Sirius was growing at a snails pace before Stern. Meanwhile, the FCC bought up by the NAB, dragged out the merger to when the companies were bleeding to death and the economy is so bad that established companies are collapsing. The merger occurred too late and this was not an accident. Let's hope somehow the Sat industry survives.
I just recieved my Slacker G2 portable player. I no longer need Satellite radio. I will be cancelling 2 XM subs when my 5 year sub expires in Feb.
The stock price indicates a bleak future for SiriusXM. If so why drastic measures aren't being taken to change the course is beyond me.
A reverse split is just a bandit that will not stop the heavy bleeding. What SIRI needs is an infusion of positive cash flow projects to stop the hemorrhage.
If things are as bleak as they look, management has an obligation to change the course. Sell ads, sell some of the channels, put SIRI in play (sell it). This is a valuable medium for broadcaster and cable/satellite TV providers. One example of a possible buyer could be AT&T. T sells package bundles of internet,telephone, cell phone and TV (with DISH). Do they want radio among their offerings? For a company with a market cap of 170+ billion buying SiriusXM for a feww billion is chump change. Cheap considering that satellite Radio is a medium with just one player.
The key now is for Mr. Karmazan to be realistic and see the status of the current firm value, and change it by whatever means possible.
The biggest disappointment that I have as a shareholder is the lack of communication from management. All I hear is about reverse split and refinance, and that is just not got enough at 12 cents per share. Mr. Karmazan has had the benefit of the doubt long enough. We need a drastic change now.
PS On a related matter what beef does the Montley Fool have against SiriusXM? Are they ex-investors in the company? Are some of the writers ex-employees? Why does the Montley Fool take so much time to undermine a 12 cent stock in the wide universe of public companies? That is a question that merits answers.
Whatever happened to this country? There are no excuses for ANY of the people involved in this mess nor for their actions. Though Satellites are expensive Sirius had a BUILT-IN money flow... Instead of giving Oprah and Stern a BILLION dollars these companies should have ramped-up carefully and steadily. The MERGER was OBVIOUSLY a disastrous mistake; beforehand and afterward. Mel K is grossly INCOMPETENT and was merely imitating the Madoff-Jew model of kiting expenses in a Ponzi style until the whole mess crashes. Moreover the false election of idiot Obama will give the company NO room to maneuver or re-finance.. this is NOT an era of growth or promise... it is sinking-ship time~~!!! -- Lastly and most importantly the degree of abuse aimed at the paying subscribers is beyond belief; -- every single one of these corporate decisions has RUINED the quality of the product... A nightmare example of what American business has become... no substance.. total hype... unbelievable RIP-OFF!
Be gone, bigot. You embarrass me.
UR A TARD
Mel Karmazin and his close cronies are siezing what little cash there is for themselves. They have totally decimated the staff of XM employees, they raided XM for their equipment and jettisoned their personnel and talent like used hankies.
They are now slashing almost all non-Howard, non-sports related programming. The music programming they are keeping, they are ditching dj's in favor of canned music programming.
The biggest losers in this whole ordeal are the XM employees that were evicted from their jobs, and the investors that watched their money evaporate in mis-guided mega-deals for MLB at XM and Howard at Sirius.
Now Sirius is arm twisting the few dj's and show hosts that are left to work for little or for nothing, yes, work for free, while Mel and his minions continue to draw fat salaries, and funnel what little money is left into their pet programming.
Sirius Radio goes down in a pathetic ball of fire..as Howard Stern talks about boobs, lesbians, and movies.
Today Howard in his infinite wisdom, stated that the company is actually on the verge of turning a profit...really???
Did Howard or Obama leave a briefcase of cash on Mel's door step. What a joke! Once again Wall Street sticks it to Main Street.
its pretty bad whats working out here long term.
but this needs said micheal tried to to tell you but you mostly just called him names..guess what hes been correct all along..
and its not inside information, the simple fact is there are no secerts.period..