He's full of shit too. The CEO of XM mentioned that Sirius offered him an astronomically huge deal that they could never compete with. I wish I could remember the exact quote, because I remember the implication was that XM was blown away by how much money Sirius was giving to Stern.
He grabbed the money. Not a huge risk, Stern.
I was listening to his rant and I could not follow his logic at all.
Howard said repeatedly that the $25 (million) were intended as insurance against a worst case scenario in which XM took over Sirius and decided to get rid of him. This is obviously NOT what happened.
Instead Howard claims he grew Sirius' subscriber base to the point that it made the company strong enough to take over XM itself (or at least effect a merger of equals). For this he demands a bonus based on his original, Sirius-only subscriber targets while counting all of XM's existing customers towards those totals.
Since this second scenario is what ultimately came to pass - whether or not Howard interprets his role in it correctly - why then did he TAKE the $25 million "emergency" bonus??? And isn't trying to have it both ways like that the textbook definition of a hypocrite?
The deal is that Howard should have had it stated in his contract, that if there was a merger..he would be paid on additional subscribers..it is after the fact that Fuckwald came up with a scheme to get more $$$
A few years ago, Pandora was on the edge of closing up shop. They received some capital, and made it all the way to go public.
Now their stock trades for $10 per share, and they have zero debt and a market cap of $1.5 billion.
If you merged Sirius and Pandora, you'd have a powerhouse media company online and through the air. You wouldn't add any debt (since Pandora has none), but you'd gain 67 million listeners (Pandora's claim). It would cost Liberty Media roughly one billion dollars to merge the two companies, IMO. You could then spin off the two as a new entity.
It would be a cheap deal for Liberty Media, and a good play to keep Sirius relevant.
Last edited by MyLazyHand; 01-08-2013 at 04:59 AM.