XM Satellite Radio Holdings Inc. (XMSR) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: i-node who wrote (387)	11/24/2002 2:12:54 PM
From: russwinter	Read Replies (1) of 3386

Don't think it would have to be 50% dilution. XMSR could sell 40 million shares (91 million shares out now) for $200 million, and be largely done with this. The new stakeholder would have 30% (plus whatever they have now) of the refinanced company and would be in position to see the light (positive cash flow) at the end of tunnel. And what would the 30% investor be getting: a very cheap entry into a billion dollar system, a pretty good leg (paid for by earlier investors)already into the ramp up cycle. Better yet, going out a few years, a strong free cash flow develops above about five million subs (apparently that's now lower according to the last call). At 10 million subs (2007 or 2008?) FCF runs about a billion bucks/year, and that's an excellent return for a development venture. Enterprise value (mkt cap @ 1.85 plus debt) is only about $543 million right now.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next