Thinking about EchoStarSiriusXMSatelliteRadio Inc.
This, apparently, hasn’t been lost on EchoStar’s Charles Ergen, who may be getting ready to take over the company.
According to the Wall Street Journal, Ergen has recently acquired part of a $300 million tranche of Sirius debt that matures on Feb. 17: “Sirius recently converted part of the debt to equity, reducing the total debt outstanding to about $175 million. It isn’t clear whether Mr. Ergen participated in the exchange, however. Mr. Ergen could also be buying up senior bank debt, due in May, which trades thinly on the over-the-counter market.”
Given all this, we now offer some food for thought:
- How does Sirius XM’s Mel Karmazin feel about all this? After all, he is a well-known dealmaker. Is he ready to sell? Ergen could be doing him a favor.
- If this does pave the way for an EchoStar takeover, would such a deal even make sense? Is there any business wisdom in combining satellite radio and satellite TV?
- And where would such a deal leave Karmazin? Satellite radio has been his baby, would he leave the game altogether? If not, then how could he work with Ergen? Remember, Karmazin and Sumner Redstone? Not exactly a match made in Heaven.
Keep an eye on:
- Hollywood may at last be having its Napster moment — struggling against the video version of the digital looting that capsized the music business (NY Times)
- Warner Music Group posted better-than-expected results on Thursday, despite falling CD sales and slower growth in digital revenue (Reuters)
- Online DVD company Netflix Incon said one million Microsoft Xbox 360 video game console users have activated Netflix’s movie streaming service in the three months since the two companies formed a partnership (Reuters)
(Photo: Sirius XM Chief Executive Mel Karmazin/Reuters)