By Steve Garcia

Today Sirius XM (NASDAQ:SIRI) CEO Mel Karmazin gave the company’s Q1 2010 results.  Among the metrics was a 1 cent positive earnings per share (EPS).  Karmazin also let it be known that as of last week’s numbers, Sirius XM had over 19 million subscribers already this year, with just a third of the 2^nd quarter complete.  The company is also among the top 8% of NASDAQ stocks based on Market Cap.  Mel also let shareholders know that delisting fears and the specter of a reverse split to satisfy those fears was over.  Sirius XM has also been able to pay off some debt; and reduce interest expense to a less than 9 % unsecured rate on the most recent debt re finance. The company, which struggled after the merger approval in 2008; and nearly went bankrupt in early 2009, continues to report an astounding turnaround quarter after quarter since obtaining a short term, though costly loan from Liberty Media and John Malone. The short term financing was costly in that it resulted in Liberty Media obtaining 40% of the company through the loan agreement. Sirius XM repaid all outstanding balances from that short term loan in a very timely fashion. (more…)

By Rick King -

Every few generations our culture finds new ways to define itself. Usually there is no stronger indicator of culture’s shifting winds than the music a generation listens to. The method in which a generation listens to its music defines it as well. Is it possible we are in the midst of exactly that? Another media revolution of transformation in the winds, from terrestrial radio and television broadcasters to satellite media?

The current population wants access to information everywhere and on demand.  Generation “Unlimited” has no concept of limitation.  They live in a world where information of every type is available at the speed of an electron in more forms than they can count.  Information and how it is channeled to a user permeates every aspect of business.  AM and FM Radio don’t work everywhere geographically so it’s fading.  Same thing for television, initially change came in the form of cable and now with continuing dominance by satellite media.

How many people still remember the world of no television?  Black and White television broadcast?  The days when AM radio was the mainstay of the American living room?  In every single instance of such change, critics denied the very possibility it could happen.  Emotions have always  run especially deep in American society when it comes to our music and how we listen to it. (more…)

By Steve Garcia

What is left of Worldspace (OTC BB: WRSPQ) was granted permission(docket #0962 dated 3/24/2010) on March 24^th in a Delaware courtroom to either find a suitor for their satellites, or de-orbit them. Liberty Media (NSDQ: LCAPA, LBTYA) attorney representatives were present when the decision was made. Although the satellites are actually owned by Worldspace Satellite Company Limited (SATCO) a non debtor affiliate of Worldspace, the contingency relief sought by Worldspace in the petition filed on March 16^th was accepted, in the event they are unable to sell the satellites off.

One way or another, this issue will come to final resolution soon. The long dragged out Bankruptcy has not done any justice to anyone. Especially not all the former listeners of Worldspace, some of whom were stuck when the service went bottoms up with pre paid services they can no longer use to listen to Worldspace and its content which they once enjoyed. Final decisions yet to be made, let’s hope the final chapter and closure to this situation is quickly upon us and not dragged along even more.

By Steve Garcia

Liberty Media(NSDQ:LCAPA,LINTA) has decided to wash its hands of any collaboration with Worldspace (OTC BB: WRSPQ) in helping them re organize and come out of Bankruptcy. Court filings from yesterday;

http://www.kccllc.net/Docket/SearchResults.asp

show that once Worldspace submitted their rebuttal to Liberty Media’s plan with some obvious changes to their benefit, Liberty cooled very quickly on the deal, remaining silent and avoiding any sign of agreement to the revised deal. Apparently, the Worldspace staff and attorneys handling the deal didn’t understand that when you deal from a critical position, and are basically on life support, it’s best not to annoy those who are keeping you alive and giving you your last best shot at survival.

Liberty Media still owns over 100 million in claims regarding Worldspace, so there is still the possibility they get what they really wanted out of the Bankruptcy proceedings. Worldspace now faces total liquidation and either sale or de orbiting of their satellites. No further details are available at this time

By Steve Garcia -

With the filed petition through the International Bureau of the FCC by Liberty Satellite Radio to take possession of Worldspace’s Afristar 1 and 2 satellites, it appears the end to the bankruptcy proceedings regarding Worldspace will be upon us fairly soon. Liberty Satellite Radio is the actual filer with agreement from Worldspace of the petition. As discussed previously in earlier articles, Liberty Satellite Radio is a holding company for Liberty Media.

The next big question is will Sirius XM be a partner or a content provider to Liberty? If it were all about fair and equal, one would expect Sirius XM to become a 40% partner in any new venture from Liberty, since they received 40% of Sirius XM for essentially a short term bridge loan. That loan was paid back to Liberty in very short order, and had many shareholders up in arms, for some pretty fair reasons. However that is ancient history, and we know that business can sometimes be ruthless in its conduct.

It is more than reasonable to speculate that Liberty is planning on starting up a satellite radio service with global implications and exclusive content. Part of that content will be native language programming for any countries that grant permission for Liberty to broadcast. Undoubtedly another large part of the situation will involve music, which certainly Sirius XM could provide. But Sirius XM can provide much more, like OEM relationships, and other exclusive content. Additionally, there is the technology and licensing on the XM side, which was granted by Worldspace several years ago to XM, and whatever improvements have been made upon it. Looking at it from the outside as an investor, I would hope that Liberty would enter into a partnership with Sirius XM. This would enable both companies to realize even greater leverage and cost reductions across their respective infrastructures with regard to satellite radio. (more…)