Sirius XM Radio Settles Pending Lawsuit: Puts Price Increase Off 6 Months

by Dennis “Cos” Costa

In an SEC Form 8-K filing with the Securities And Exchange Commission (SEC) on May 16th, 2011, Sirius XM Radio Inc. (NASDAQ: SIRI) outlined its agreement to settle the pending lawsuit entitled, Carl Blessing et al. v. Sirius XM Radio Inc.

The Case

The case involves a class action based on the Plaintiffs’ purchase of satellite digital audio radio services (SDARS), more commonly know as “satellite radio”, from the Defendant at various locations throughout the United States. The Plaintiffs proposed that the July 28th, 2008 merger of the only two satellite radio providers, Sirius Satellite Radio and XM Satellite Holdings, created a monopoly in the newly formed company, Sirius XM Radio Inc. As such, the Plaintiff claimed that the Defendants, Sirius XM Radio Inc. abused its monopoly power in violation of federal antitrust laws, and deceived its customers in violation of state consumer protection laws. The Defendants vigorously opposed the Plaintiffs’ claims.

The specifics involve the Defendant making upward adjustments to its pricing with respect to certain of its services and fees. The actions in question were; increasing the cost to multi-radio subscribers from $6.99 to $8.99, deleting their included streaming lower bandwidth internet service and initiating a $2.99 fee for their improved internet service. In addition, they began charging a “U.S. Music Royalty Fee” (MRF) of $1.98 for a primary subscription and $.97 for additional subscriptions. The Plaintiffs allege that these price increases were the result of the Defendant’s abuse of monopolistic power, with the Defendant claiming that the price increases simply reflect increases in the Defendant’s costs and the higher quality of internet service provided. Continue reading

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Posted in Market News, Media | Tagged Conference Call, Cos, Dennis "Cos" Costa, Mel Karmazin, NASDAQ:SIRI, Satellite Radio, SIRI, Sirius XM, Sirius XM Radio, XM Satellite Radio | Comments Off

Sirius XM Radio Q1 Estimated Results: More Than Just The Numbers

by Dennis “Cos” Costa

With just a few days to go before Sirius XM Radio (NASDAQ: SIRI) reports its first quarter, 2011 results, the company again has investors wondering what that news will bring. The company is scheduled to release its financial and operating results on Tuesday, May 3rd, with a Conference Call scheduled for 8:00 am ET.

Unlike past quarters, where pre-released numbers came with the announcement of the scheduled conference call, or as a result of the company’s participation in an institutional investor conference, this quarter management has remained silent on its performance. No fanfare from the company on subscriber net additions, projected revenue, or anticipated adjusted EBITDA for retail bloggers, or professional analysts to begin to gnaw on. All are left with last quarter’s results, our own assessment of the company’s economic environment, the company’s own timid guidance for 2011, and any tidbits of news that may impact outcomes to figure out what will be reported in the company’s mandated release of quarterly information. Quite simply, the company is not saying a word and I for one, am not saying that this is a bad thing. Continue reading

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Posted in Market News, Media, Sirius XM (SIRI) News | Tagged auto sales, Conference Call, Cos, David Frear, Dennis "Cos" Costa, Dennis Costa, John Malone, LCAPA, Liberty Capital, Liberty Media, LINTA, Mel Karmazin, NASDAQ, NASDAQ:LCAPA, NASDAQ:LINTA, NASDAQ:LSTZA, NASDAQ:SIRI, Satellite Radio, SIRI, Sirius XM, Sirius XM Radio | 1 Comment

Sirius XM Radio To Announce Q1 2011 Results –The Stage Is Set

by Dennis “Cos” Costa

In a press release today, Sirius XM Radio (NASDAQ:SIRI) announced that it will be providing first quarter 2011 results, on Tuesday, May 3rd. It will also conduct a Conference Call at 8:00 am ET to discuss those results. If the company follows previous procedure, it will release the results approximately one hour before the Conference Call for investors and analysts to digest, present management’s report of highlights of those results during the call, and then follow up with a Q & A to conclude the event.

Investors are eagerly awaiting these results with the stock having had an impressive run over the last six months. From a closing price of $1.32 on October 25th 2010, to Thursday’s April 22nd, 2011 close of $1.93. Investors will be looking for guidance from the company to give basis for the stock’s continued appreciation. This recent 46% stock price appreciation represents a remarkable continuation of the turn-around-story that Sirius XM Radio has become. Since SIRI executed its investment agreement with Liberty Media Corporation (NASDAQ:LCAPA, LINTA, LSTZA) at the end of the first quarter of 2009, the stock has appreciated ~450%, rewarding investors very nicely along the way.

It is this two year old investment agreement with Liberty, which while saving Sirius XM from near bankruptcy, provided Liberty Media a 40% ownership position in the company, that analysts and investors are paying the closest of attention to. Any news out of either company is always closely scrutinized for a hint at direction by either company. Liberty Media announced earlier in the month that on Friday, May 6th, it too will be releasing its 2011 first quarter results. Their conference call will take place at 11:00 am ET, and hosted by Greg Maffei, President & CEO. Liberty’s ownership position is now held by Liberty Radio, LLC, as a subsidiary of Liberty Media Corp, in the form of Preferred B-1 shares, and is where much of investor and analyst speculation will reside in the coming months and quarters. Continue reading

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Posted in Media, Sirius XM (SIRI) News | Tagged Conference Call, Cos, Dennis "Cos" Costa, DISH, Greg Maffei, John Malone, LCAPA, Liberty Capital, Liberty Media, MMC, NASDAQ: DISH, NASDAQ: MMC, NASDAQ:LCAPA, NASDAQ:LINTA, NASDAQ:SIRI, NewMarketPlayers, NewMarketPlayers Forums, SIRI, Sirius XM Radio | 1 Comment