A few extra facts about Dish Network and Sirius XM
· Charles Ergen is Chief Exec of Dish Network from which set-top-box maker EchoStar recently spun off. It's not known which company holds Sirius XM debt, Echo or Dish.
· Ergen is a former professional gambler and is apparently known for chancy business deals and fierce independence. He'll be well suited to playing this new game in which he finds himself.
· It's about more than satellite radio for Ergan - acquisition of Sirius XM will help Dish Network compete against DirecTV.
· Dish Net has a technical interest in acquiring the satellite radio company due to the superior positioning of Sirius XM satellites than their own. DirecTV also has better positioned satellites than Dish. So, Ergan wants to hold his cards close as Bankruptcy ensues betting that the longer her waits the great the discount at which he'll be able to purchase all of Sirius XM assets.
· Dish Network bought portions of the wireless spectrum last year. It's speculated they could use it be provide mobile video. Could there be potential collaboration with satellite radio technologies?
· If the company files for bankruptcy, Ergan owns enough of the company that he will be at the table for possible control of Sirius XM. It might be in his best interest to let it go that far for as deep a discount as possible.
· If Sirius XM does file Chapter 11 (and even if Ergan does an 11th hour purchase) it may spell the end of some of its high powered contracts such as Howard Stern who costs the company $500 million for five years.