Liberty Interactive Corporation Message Board
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The Google news will bring a whole lot of new attention to SIRI. up we go!!!! OH YEA
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Did you get any STRZA or SIRI? OH YEA
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Up we go!
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Enjoy
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from todays earnings release from Liberty
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TORONTO , May 1, 2013 /CNW/ - SiriusXM Canada (XSR.TO), the country's leading audio entertainment company, today announced that Go Auto Group has joined its pre-owned vehicle program. The program helps participating dealerships better market their inventory by offering a complimentary three-month SiriusXM subscription with any purchase of a pre-owned vehicle equipped with a satellite radio.
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This is vintage Malone. leverage up the long term debt at very low rates shrink the float and then spring the latch and let it run. Want a good example? Look up STRZA. I'm all over that one.
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Great read on how Malone creates wealth for shareholders. Enjoy
by ezalldee •May 1, 2013 4:46 PMMalone makes all the right moves!
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Liberty funded the purchase with cash on hand of $1.2 billion and borrowed $1.4 billion under newly executed margin loans on 20.3 million Charter common shares (CHTR), 720 million SiriusXM common shares (SIRI), 8.1 million Live Nation Entertainment common shares (LYV) and a portion of Liberty’s available for sale securities.
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A perfect example of the power of operating leverage is Sirius Satellite Radio ($SIRI). After their merger with $XMSR in 2008 their stock took a beating. This wasn’t so surprising. The company invested billions of dollars in launching satellites, hiring and developing exclusive content etc. that during the “great recession”, with the prospects of subscriber growth dwindling, the company felt the pain of all those fixed costs.
In came John Malone (via Liberty Media ($LMCA)) with what has to be one of the best investments of all time. $SIRI had $3.25B in debt, with almost $200M of that due on 2/17/09. A few days prior to the 17th, literally on the verge of bankruptcy, Liberty loaned the company $550M in exchange for shares convertible into 40% of the common stock. Within the year, $SIRI was able to refinance and repay the loan.
As the economy & revenues started to rebound, some serious operating leverage kicked in. With so few variable costs, almost all of the company’s new revenues from new subscribers and new advertising flowed straight down to the bottom line.
The company went from an adjusted EBITDA loss of $136M in 2008, and a low of $0.05 per share – that’s five cents – on 2/11/09, to an adjusted EBITDA gain of $920M in 2012. At a current $3.13 the stock is up a staggering 62x!
Malone bought more over time and now controls over 50% of the corporation. His original 40% – which had a theoretical negative cost (because the debt was paid back with interest) is worth an astonishing $8.2 Billion!
Now that’s some nice leverage! Less -
A perfect example of the power of operating leverage is Sirius Satellite Radio ($SIRI). After their merger with $XMSR in 2008 their stock took a beating. This wasn’t so surprising. The company invested billions of dollars in launching satellites, hiring and developing exclusive content etc. that during the “great recession”, with the prospects of subscriber growth dwindling, the company felt the pain of all those fixed costs.
In came John Malone (via Liberty Media ($LMCA)) with what has to be one of the best investments of all time. $SIRI had $3.25B in debt, with almost $200M of that due on 2/17/09. A few days prior to the 17th, literally on the verge of bankruptcy, Liberty loaned the company $550M in exchange for shares convertible into 40% of the common stock. Within the year, $SIRI was able to refinance and repay the loan.
As the economy & revenues started to rebound, some serious operating leverage kicked in. With so few variable costs, almost all of the company’s new revenues from new subscribers and new advertising flowed straight down to the bottom line.
The company went from an adjusted EBITDA loss of $136M in 2008, and a low of $0.05 per share – that’s five cents – on 2/11/09, to an adjusted EBITDA gain of $920M in 2012. At a current $3.13 the stock is up a staggering 62x!
Malone bought more over time and now controls over 50% of the corporation. His original 40% – which had a theoretical negative cost (because the debt was paid back with interest) is worth an astonishing $8.2 Billion!
Now that’s some nice leverage! -
Go Johnny boy go
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SiriusXM Canada Generates Continued Year-Over-Year Growth in Q2 Fiscal 2013
Press Release: Sirius XM Canada Holdings Inc. – Thu, Apr 11, 2013 7:00 AM EDT
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Symbol Price Change
XSR.TO 6.40 -0.04
Total Subscribers of 2.2 million; year-over-year net additions of 183,800
Revenue grew 10.8% to a record $70.7 million
Adjusted EBITDA** increased 60.6% to a record $19.1 million
Net income of $4.1 million , up $6.8 million year-over-year
Free cash flow increased 10.0% to $13.0 million
TORONTO , April 11, 2013 /CNW/ - Sirius XM Canada H -
On January 18, 2013, Liberty Media Corporation (the "Company"), through a wholly-owned subsidiary, purchased 50,000,000 shares of the common stock ("SIRIUS XM Common Stock"), par value $0.001 per share, of SIRIUS XM Radio, Inc. ("SIRIUS XM") for $3.1556 per share in a block purchase from a financial institution (the "Block Transaction"). The Company used available cash on hand to acquire the shares of SIRIUS XM Common Stock in the Block Transaction. Additionally, on January 18, 2013 a subsidiary of the Company converted all of its remaining shares of Sirius XM's Convertible Perpetual Preferred Stock, Series B-1, par value $0.001 per share, into 1,293,509,076 shares of Sirius XM Common Stock. As a result of these transactions, along with shares of SIRIUS XM Common Stock acquired by the Company and its subsidiaries in the fiscal year ended December 31, 2012, the Company and its subsidiaries now hold more than 50% of the capital stock of SIRIUS XM entitled to vote on any matter, including the election of directors.