[ Trust the Government ]
David, CDRD knows that you can't really trust the government to do anything. Here are a few choice quotes from the S-3.
"If the Company is not awarded the FCC License despite being a winning bidder in the auction, the Company would be forced to identify an alternative business plan and use for any remaining capital resources. Such an alternative plan could involve a change in focus to a related or unrelated business activity, or dissolution of the Company."
"In addition, if prior to the earlier of April 21, 1998 or the closing of a Qualifying Offering (as defined below), the FCC awards more than two licenses permitting the licensee to provide satellite digital audio radio services and more than two licensees commence or announce an intention to commence satellite digital audio radio services, then upon the request of the holders of more than one-third of the outstanding shares of the 5% Preferred Stock, the Company shall purchase..."
David, do you really believe everything the government promises will actually be done? My personal guess is that CDRD will get their license. Further, I'll guess that if satellite radio becomes popular with consumers, additional licenses will be sold before the year 2000. |
