Battle For Sirius Control Wages On; Shareholders Angry
As many of you may already be aware that Sirius Radio ( SIRI ) stock has plummeted 50% today to a dismal .05. Most of this drop occurred in after hours trading yesterday. The most recent drop of the company is due to, what appears to be, an epic battle between Sirius CEO Mel Karmazin and EchoStar Corp.’s Charles Ergen.
It had been reported that Ergen bought up a nice chunk of Sirius’ debt due next week. Instead of accepting an offer from Ergen to renegotiate debt he holds, gain control, and inject cash into the radio company, Mel ,it would seem, has decided to try to get even more money out of Ergen. Mel could very well be the one behind the leaking of reports that Sirius is preparing to file for bankruptcy protection. This may force Ergen into either sweetening his deal offered last year, renegotiate debt without trying to gaining control, or trying to buy the company outright. I do not have to remind any of you that nobody likes to lose 175+ million that it has been reported Ergen holds.
Speaking of losing money… the remaining shareholders in Siri are getting more and more fed up with all of these antics. The stock was just higher than had been in months… The stock was trading at .17 on February 5th.
We will see who will win this fight over Sirius Satellite Radio (siri) Mel Karmazin or Charlie Ergen… but we know who already lost… the shareholders.
A sirius drop for Sirius Radio.
Comment by nautiq on 11 February 2009:
the most infuriating thing is that the only reason the merger passed and the company has stayed afloat for the last years is the shareholders money.
Mel lied about EVERYTHING to us, and stole our company after we totally bailed him out.
now he gets to screw us, steal the company and make hundreds of millions of dollars from our investment.
That is about as low as you cam get.
Thanks Mel, youre a real pal…
Comment by mark on 17 February 2009:
In my opinion, anyone who invested in SIRIUS after Y2K until now should have understood the huge risk.
It has been understood that Sirius/XM sales have been related to vehicle sales. Vehicle sales haven’t done well since the dot.com bubble burst was evident in late 2000.
Still, there is money to be made if Sirius can pull the negotiations off.
As bad as things look, even with the stock market as a whole, the people who saved their pennies to invest now are the ones who will be very rich in the next 5 years.