Sirius XM Radio Inc. is in "advanced" talks with Liberty Media Corp. in a last-ditch effort to save itself from an unsolicited takeover by Echostar, according to sources at the Wall Street Journal.It sets the stage for what feels like the Battle At Kruger with the nation's two leading Satellite Television providers locking horns over the nation's sole Satellite Radio provider.
But with such little time left, will John C. Malone (pictured) emerge as Mel Karmazin's white knight?
According to the Wall Street Journal, while the talks between Sirius XM and Liberty Media are "advanced," a deal still remains far from certain.
But Liberty Media - which is controlled by billionaire John Malone - has emerged as a potential "white knight" for Sirius XM after Charlie Ergen made an unsolicited offer to take control of the company.
It still isn't clear how much Liberty would be willing to invest in Sirius XM, and whether it would end up with control. Malone is known as a careful negotiator and is unlikely to cut a deal in haste.
"John Malone's no fool, though," writes Henry Blodget at Silicon Alley Insider. "...he's holding Mel's head under the water while Mel's cash runs out, hoping that the oxygen deprivation will soon force him to cut a super-sweet deal."
The problem is, Mel doesn't have much time. If Karmazin can't secure the funds necessary to repay Sirius XM's debt obligations by Tuesday, he'll likely be forced into bankruptcy proceedings or a less-than-favorable deal with Ergen.
It's a battle-royale between Mel Karmazin, Charlie Ergen and John Malone, with only a few days left.
[Wall Street Journal]
But Liberty Media - which is controlled by billionaire John Malone - has emerged as a potential "white knight" for Sirius XM after Charlie Ergen made an unsolicited offer to take control of the company.
It still isn't clear how much Liberty would be willing to invest in Sirius XM, and whether it would end up with control. Malone is known as a careful negotiator and is unlikely to cut a deal in haste.
"John Malone's no fool, though," writes Henry Blodget at Silicon Alley Insider. "...he's holding Mel's head under the water while Mel's cash runs out, hoping that the oxygen deprivation will soon force him to cut a super-sweet deal."
The problem is, Mel doesn't have much time. If Karmazin can't secure the funds necessary to repay Sirius XM's debt obligations by Tuesday, he'll likely be forced into bankruptcy proceedings or a less-than-favorable deal with Ergen.
It's a battle-royale between Mel Karmazin, Charlie Ergen and John Malone, with only a few days left.
[Wall Street Journal]
Malone is not a thief like Mel or the Echostar guy. Bring it on.
I'd rather see Ergen win out on this one. Echostar/Dish has shown more of an inclination to innovate, with the addition of Sling to their DVRs and previous initiatives with Archos to make DVR recordings portable. I think in that situation we'd see not only a decent satellite radio company, but probably some more innovation beyond weather, traffic and video services too.
The answer here is simple: Sell XM to EchoStar, Sirius to Liberty Media (or the other way around, if you prefer).
I have my fingers crossed!!!!! Save Sirius/XM Radio!!
That would be an interesting co-brand--Direct tv and Sirius
Directv could pick up a few former xm sats for their hd service, have 20 million more subs to onvert and with debt being taken care of, actually give sirius the opportunity to really become a growth center for the future--Plus when the OEMs recover--they(liberty) could really see some income growth
My whole point is if this merger is to keep sirius intact and grow, it would be beneficial when compared to just cherry picking some assets and throwing the rest to the curb, as what it seems Ergen is trying to do
Mel go for it.
Split the company again. DirecTV takes XM, and DishNetwork takes Sirius.
Would be sweet if DirectTV took over the XM part of the company only and Dish took over sirius. That way neither company would really have to invest so much into it. Poor poor Mel, you ran viacom into the ground and now you're doing the same for sat radio.
"Split the company again. DirecTV takes XM, and DishNetwork takes Sirius."
Great idea ! But i don't think they can all that worked out in a week...
Hey, It Sounds like a good Idea!!
Someone wrote into the Opie and Anthony Show with the theory that since Sirius XM owes Howard Stern $200 million for the remaining two years of his contract, Howard might end up owning the company.
When the Pittsburgh Penguins declared bankruptcy, Mario Lemieux was owed more money than any of the other people (or entities) owed debt. He was able to takeover ownership of the team.
Maybe if Howie owned Sirius XM, he might start working Fridays.
Wow! If there is any hope of splitting this company and undoing the stupid merger I'm all for it.
Is this a possibility?
I'm all for a split if possible. I was never in favor of this shitty merger and even less in favor of ol' Mel. He ruined viacom, left CBS in the dirt and only ever looked after himself. He'd even step on Howies dick to save a few sheckles. Directv already uses XM as their music service so that would work well and I feel we would get better talk/entertainment when they compete against eachother rather the whole big family bs. I'm willing to bet the Stern and O&A fans would both agree to a split (as if it's up to any of us).
@rick rottman--re Howie taking off on Fridays. Agreed man. That was an opening blow to the solar plexus that he wasn't fully invested in this thing as he should be. Is he or isnt he a stake holder. How much of his take is tied into future options/redemptions versus straight salary? Dont get me wrong, he deserves every cent and more, but he was always cranky about promoting the product. Begrudging appearances on Letterman and that was it with some nice print ads. Come on Howard. Hope its not too late. Stern back on FM is a truly nausea inducing prospect
video saved the radio star
Chris, a split looks like a pretty long shot to me...but to be honest, I would not mind seeing it that way.
Not only would there be competition once again, who knows? Maybe a lot of good people who were trashed at both companies would get their jobs back.
Whoever the last man standing is will make that decision.