This is a win win for LINTA. If SIRI defaults on the bridge loan, they get forced into bk by LINTA who stands first in line for asset reclamation. If SIRI thrives, LINTA also thrives with the useful satellites and subscribers. Malone is no dummy.
Is the Liberty investment in Sirius convertible to equity? I thought it was just loans? Either way, I think you're probably correct - - No competitors are in quite the same position as Sirius for content delivery. They need to continue to innovate to add new subscriptions. They are doing a reasonable job, but most folks that are interested in subscribing to the current services are already on board...They need to extend their offering to get their numbers up.
Siri was in a cash sqeeze and is paying Libery 15% interest on $500 million. Liberty is the senior lender and was given a 40% ownership. Siri said it will make $300 this year (in a down market), have 18 million customers which an be cross sold to DTV and has no more debt obligations coming due this year. Now what issue do you see with the deal?