05-25-2004, 10:44 PM
Hey jackass, where did I say anything about how much money they have? I was talking about overall worth and value. Which, believe it or not, is more important than how much money they have in the sock drawer.
Of course, you'll never see past your self invented theory on why you're an expert on any topic discussed on this forum.
Both companies are playing with the house's money right now. The credit taken out to lease (or even moreso to completly operate) satellite space is astronomical (yuk yuk). Paying off Delphi for their manufacturing costs, and a loss of paid advertising revenue (XM) will only further drive them away from profit. The fact is, neither one of these companies has a pot to piss in currently and need something that will draw a very large number of subscribers. The FCC crackdowns recently are the only prayer they have to ever get in the black.
Marketing a product with no significant draw is pointless, yet XM spends millions every day to do it. And guess what? THEY CAN AFFORD TO! Having a large overall worth allows them to keep borrowing and borrowing and borrowing from wherever they can. They'll be in the hole forever, until one of the companies can outpace their rival with superior CONTENT. The same songs and news channels arent diverse content.
Whoever signs O&A will get an influx of subscribers, but their deal will pale in comparison to the 800lb Gorilla who WILL be on satellite radio. Stern will do one of two things: (1) Retire and sell his best-of rights to one of the satellite companies, or (2) Bring his show to Satellite. The influx of all the Stern tools will be gargantuan as people realize "holy shit, there really is nothing on the radio!"
So your lesson for the day is: If you have a big wad of cash in your pocket, and you go to the bank and say "Hey! this is all I own, but it's not enough so let me borrow $1,000 more." You'll be laughed out of town. Go into the same bank with a dollar, but proof that you own a company that has BILLIONS of dollars worth of assets and investor value.......not to mention potential future earnings, and they'll load your U-Haul up for you. More worth = more cash.
Of course, you'll never see past your self invented theory on why you're an expert on any topic discussed on this forum.
Both companies are playing with the house's money right now. The credit taken out to lease (or even moreso to completly operate) satellite space is astronomical (yuk yuk). Paying off Delphi for their manufacturing costs, and a loss of paid advertising revenue (XM) will only further drive them away from profit. The fact is, neither one of these companies has a pot to piss in currently and need something that will draw a very large number of subscribers. The FCC crackdowns recently are the only prayer they have to ever get in the black.
Marketing a product with no significant draw is pointless, yet XM spends millions every day to do it. And guess what? THEY CAN AFFORD TO! Having a large overall worth allows them to keep borrowing and borrowing and borrowing from wherever they can. They'll be in the hole forever, until one of the companies can outpace their rival with superior CONTENT. The same songs and news channels arent diverse content.
Whoever signs O&A will get an influx of subscribers, but their deal will pale in comparison to the 800lb Gorilla who WILL be on satellite radio. Stern will do one of two things: (1) Retire and sell his best-of rights to one of the satellite companies, or (2) Bring his show to Satellite. The influx of all the Stern tools will be gargantuan as people realize "holy shit, there really is nothing on the radio!"
So your lesson for the day is: If you have a big wad of cash in your pocket, and you go to the bank and say "Hey! this is all I own, but it's not enough so let me borrow $1,000 more." You'll be laughed out of town. Go into the same bank with a dollar, but proof that you own a company that has BILLIONS of dollars worth of assets and investor value.......not to mention potential future earnings, and they'll load your U-Haul up for you. More worth = more cash.