From SIRI's 2nd quarter 10Q:
"In January, 2006, Howard Stern and his agent were granted an aggregate 34,375,000 shares of our common stock as a result of certain performance targets there were satisfied in January, 2006. We recognized expense associated with these shares of $224,813,000 during the six months ended June 30, 2006".
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In addition to the above, Sirius will pay $80,000,000 in cash to Stern during the year ended 12/31/2006, for a total of $304,813,000, which excludes certain other payments that Stern will receive.
Stern is most certainly making a profit on a Cash Basis!
So, Sirius has already spent $304,813,000 on Stern, and owes him an addition $320,000,000 minimally over the coming 4 years.
OK! Well use your numbers.. $450 million in cash compensation over 5 years, and 320 million in stock based compensation. For a total of 770 million over 5 years. Or 154 million a year! Heck, he is still making them cash flow positive based on figures provided 9 months ago of 1.1 million X $155 a year per subscriber. You can attempt to shuffle the numbers around all you want.. But, it still comes up as Cash Flow Positive.
Versus the 600 million for MLB that is without question a LOSING PROPOSITION for our friends at XM at this juncture.
And we haven't even started talking about Ad Revenue.
Let's take a look at those line items..
From the recent SIRI 10-Q
Advertising revenue, net of agency fees
Revenue:
For the Six Months
Ended June 30, 2006
$15.463 million
vs $1.586 million for the Six Months Ended June 30, 2005.
That is a whopping 900% increase.
Heck, SIRI only had 6 million in ad revenue for the entire year of 2005. Now half way through '06. They are already near 16 million. Hmmm! I wonder who is generating the big jump? But, I am sure that MLB is driving home HUGE Ad Sales for XM for that 60 million a year plus incentives. LOL!!
As I said, you have no idea what you're talking about. Your commentary is just as informed as that of Sirius Rich and rruff.
ROTFLMAO!! You know what? I am of the opinion that you believe if you say something long enough and ofter enough that people will believe what you say as being a FACT. One only has to look at your track record and HOW WRONG for SO LONG you have been..
And so it goes,
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