With the recently announced closure of Worldspace Inc, (OTC: WRSPQ) operations in India and Africa, it is increasingly likely that Liberty’s (NASDAQ:LCAPA, NASDAQ:LINTA) intent is to go after the European market, a market with much more disposable income than India or Africa currently possesses. As written about at Rapid TV News by Chris Forrester, as well as “The Daily News Analysis” website – A Mumbai based Company by Praveena Sharma
Liberty Media has apparently done extensive due diligence on the range of possibilities and no doubt came to the same conclusion many have regarding “Worldspace” and its demise. There is not sufficient disposable income or interest in sufficient numbers in those areas of the world currently to sustain a healthy business model. It seems the speculation would lead to Liberty working on some sort of European and possibly South American/Caribbean Satellite Radio launch with help and expertise from Sirius XM Radio. Perhaps returning to India and Africa after the foundation gets stronger.
There have been claims that the deal for Worldspace assets has been finalized by Liberty, but none from US news sources, and to date, no filings from Worldspace or Liberty can be found regarding the alleged finalized transaction. As we await confirmation of the deal, is there even bigger news on the not too distant horizon, from both Liberty and Sirius XM Radio? What would a Sirius XM Radio or Liberty Media equity be worth if you added in European and South American subscribers to the business? Much more than its current value, one would think. There are many rumors circulating about these companies and the financial state of Sirius XM Radio in particular. Recent coverage initiated on Sirius XM Radio debt suggests the company is more than capable of servicing its debt and surviving.
With JP Morgan, Bank of America, Merrill Lynch and others initiating that coverage, the company has gained more credibility on the street. A recent article by the street.com was blasted, and put its writer in full retreat. So much so that she updated her story with comments from readers which were mostly supporting Sirius XM Radio. Others such as Zacks have continued to bash Sirius XM Radio and favor the once again media flavor of the month Pandora as the Sirius XM Giant Killer. This time with a 1200 dollar price tag for the supposedly free (only with limited listening is this true, an upgrade to premium costs minimum $3.99 per month) service in your car via what is really an overpriced Navigation system. I beg to differ, but a lifetime sub or two could be had for the price of this latest Pandora enterprise with change left over after equipment purchase. The true reasons behind all this Pandora love in my opinion lay in their looking for a suitor. A company which makes only 40 million dollars a year and pays 30 million of that in royalties is like that ugly dog with fleas you once tried to take home to mom. It was a bad idea then and it’s a bad idea now. I have nothing against Pandora but it lacks the content and special programming I have come to love and count on with Sirius XM. I wish them luck in trying to flea dip that dog, looks like they are not going anywhere for a while; may I suggest a snickers bar?
It’s been a while since I have written an article on SIRUS XM Radio. Since the next big battle over this stock is being waged, with the anticipation of Q4 numbers that will surprise to the positive, I thought I would just give my 2 cents. Best of luck to all shareholders, and I am looking forward to some juicy information soon to share.
Disclosure: Long SIRI
just to be able to get all the sports games and the fifties on rock an roll music in the home and while you are in your car ANYWHERE, is worth all the tea in china. what are these people looking at with this negative talk. WAKE UP
I could not agree more. I love the service Richard, and have 3 Lifetime Subscriptions!
dear fans of serious Sirius talk. listenup. Think about it sirus rus on WorldSpace satalies within the next couple month when At@t loses the licese to the iphone(April) Heres a fact froI read in BusinessWeek 3 percent of iphone usesrs 97 percent of the networt by watching YouTube.com and listening to Sirus radio app. That is the reason why AT@T customers have so many droped calls.NO BROADBAND NETWORK WILL BE ABLE TO HANDLE THE THE COMEING VIDIO AND DATA TRANMITION. DO YOU REALLY THINK WORLD SPACE INC. IS NOT GOING TO MAKE CRAZY MONEY. LOOK AT THE SPIKES IN THE STOK AND THE INCREASE IN MARKET CAPETIALIZATION/
We do a lot of commercial satellite radio for restaurants, office buildings, small stores, banks, etc. We have seen a big increase in interest in satellite radio since FM reception is poor and customers understand that having music in the background is a way to increase sales. SiriusXM is the only alternative and done correctly, can be the best thing to raise revenue by keeping the customers in the store.
I also hold the stock for the long haul and even after the competitive news breaks on how Sirius will be hurt by Pandora and others, the stocks stay on par. Competition is healthy and should help keeps costs down. Bring it on!
Heres a hint – music is basically free now. A guy in his moms basement can put together an online radio station in a few hours, but these music options are never going to be a threat for Sirius because Siri has a lock down on TALENT. Rosie, Howard, Martha, Oprah, Snoop Dogg, etc. I even heard Hillbilly Jim hosting their bluegrass station. Yeeeeeeeeeeeeeeeeeeeeeeehaaaaaaaaaaaaaaaaw.
Conan,
Nice to have you aboard. Perhaps you will wind up in a better place after all is said and done……lol