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| Dave Rathbun |
 Posted: Mon Feb 19, 2007 5:30 pm Post subject: It's official, XM + SIRI = ? |
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CFO
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It seems that the top management at XM and SIRI have made it official, they announced today that they're going to attempt a merger. SIRI will apparently be the surviving stock symbol, as each share of XM is worth 4.6 shares of SIRI. That puts the total value on the deal at 4.6 billion in stock.
In other words, no real money changes hands, just funny money. 
There are regulatory hurdles to pass, as the results of the merger would put both satellite radio licenses under one roof, so to speak.
I'm not sure I care, other than they had better not cut off my service.  |
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| Dave Rathbun |
| Posted: Mon Feb 19, 2007 5:40 pm Post subject: |
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CFO
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I'm sure you can find plenty of articles on this, but here are a few selected quotes:
| TheStreet.com wrote: | | Shareholders have grown weary of financing Sirius' and XM's ever-growing needs for cash, particularly with rivals to satellite radio sprouting at every turn. The last year was marked by consumers' embrace of the Apple (AAPL - Cramer's Take - Stockpickr - Rating) iPod, and now cell phone companies are trying to grab market share with music phones of their own. Whether a combined Sirius-XM would be better equipped to advance technologically will be an important question for investors to weigh. |
| Reuters wrote: | U.S. satellite radio providers Sirius Satellite Radio (SIRI.O: Quote, Profile, Research) and XM Satellite Radio (XMSR.O: Quote, Profile, Research) would have a high hurdle to overcome to win Federal Communications Commission approval, the agency's chairman Kevin Martin said on Monday.
"The hurdle here, however, would be high as the commission originally prohibited one company from holding the only two satellite radio licenses," Martin said in a statement.
The satellite radio licenses awarded a decade ago prevented one company from owning them, however Martin said last month that the limitation was open to change if requested.
"The companies would need to demonstrate that consumers would clearly be better off with both more choice and affordable prices," Martin said. |
| Reuters - Page 2 wrote: | "When the FCC authorized satellite radio, it specifically found that the public would be served best by two competitive nationwide systems," said NAB spokesman Dennis Wharton.
"Now, with their stock prices at rock bottom and their business model in disarray because of profligate spending practices, they seek a government bailout to avoid competing in the marketplace," he said. |
Most of the press seems cautious if on the optimistic side, and downright nasty if on the negative side. It may be an interesting day to trade SIRI stock tomorrow. Up? Down? Soar? Crash and burn?
I have a nice nest-egg of SIRI shares in my game portfolio here.  You can be your sweet satellites that I'll be selling out if there is any sort of upward movement in the stock at all... |
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| Im Not Warren Buffett |
| Posted: Mon Feb 19, 2007 6:10 pm Post subject: |
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CFO
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I still have doubts that this will clear regulation, unless XM/SIRI convince the FCC that there will be no satellite radio without the merger because both companies will go bankrupt.  |
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| Dave Rathbun |
| Posted: Mon Feb 19, 2007 6:51 pm Post subject: |
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CFO
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I, too, have doubts. But I imagine that there will be some money made and lost on trades up and down for the duration.
I need to go back and read my contract for my Sirius service, see what happens in the event of a buyout. The good news, at least for me, is that my contract is with SIRI and not XM. For example, I think someone told me that XM charges an extra fee for Internet listening, while SIRI allows me to use my account to listen over the web for no additional charge. That was a big part of my decision to continue after my freebie subscription expired. |
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| BallJacker |
| Posted: Mon Feb 19, 2007 11:57 pm Post subject: |
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Investing Manager
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Anti Trust and Monoploy, unless a smaller fish startes up and creates some competition. Why do you think DISH network is still around. If DISH were to go away, DIRECTV would have to answer some type of PUC.
BTW whats the offer for SIRI? I got a friend who is still holding a fair share bought at $7. She might break even if she is lucky. |
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| Grimreaper |
| Posted: Tue Feb 20, 2007 3:29 am Post subject: |
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CFO
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| This merger news is hilarious! It's even more hilarious that both XMSR and SIRI stock prices are trading higher in PM trading. I rate SIRI an outright chort on da news....I wouldn buy or chort XMSR just yet but methinks it'll break back into da single digi's when this deal gits "null n void-ified" Dat Mel Karmizan dude is one slick sheister. I'm wreckin this will draw out yet another buy call from Jim Cramer too! |
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| Im Not Warren Buffett |
| Posted: Tue Feb 20, 2007 4:06 am Post subject: |
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CFO
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| BallJacker wrote: | | Anti Trust and Monoploy, unless a smaller fish startes up and creates some competition. |
From my understanding of the situation, there are only two satellite radio licenses. Sirius has one, XM has the other. The combining of the companies would mean one company controls both licenses... and all satellite radio. That is apparently where the objection comes from. |
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| Grimreaper |
| Posted: Tue Feb 20, 2007 4:28 am Post subject: |
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CFO
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So fer..ifn you look at da moves ole sheister Mel has made since he came on board....every single one of em has been a reazun to sell. The Howard Stern news was the ultimate reazun to sell as SIRI will never print a $9 price on da tape agin. Then he hooked up wit Cramer on Mad Monkey in da mid 5's....yet another reazun to sell. Now he has created a reazun fo the stock price to collapse when the attempt to pump up da price with this news fails. When the merger either falls apart because the stock price of SIRI collapses on its own or da merger is denied SIRI will move sub $3 dallahs.  All this hoopla and no earnuns ta speak ov! Some fokes actually think dat earnuns mattah! YIKERS! |
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| Dave Rathbun |
| Posted: Tue Feb 20, 2007 7:48 am Post subject: |
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CFO
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But you have to admit, Grim, that you can make money on a stock as long as it moves. About the only thing you can do that fails to make (or lose) money is buy a stuck stock. SIRI is bound to be a traders game for the next several months.
I'm selling out of my holdings in the game portfolio on this news, will try to watch from the sidelines for a few weeks. |
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| Grimreaper |
| Posted: Tue Feb 20, 2007 8:01 am Post subject: |
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CFO
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| Dave Rathbun wrote: | But you have to admit, Grim, that you can make money on a stock as long as it moves. About the only thing you can do that fails to make (or lose) money is buy a stuck stock. SIRI is bound to be a traders game for the next several months.
I'm selling out of my holdings in the game portfolio on this news, will try to watch from the sidelines for a few weeks. |
Good move! SIRI is already toast as ov the openin move. XMSR will trade through the high I'm wreckin. Both will be down at least 20% from these levels within 1 week. |
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| vetelmo |
| Posted: Tue Feb 20, 2007 10:58 am Post subject: |
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Pretty good news, it helped out my portfolio today, lol.
Dave, XM doesn't charge extra for internet listening. |
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| geb9696 |
| Posted: Tue Feb 20, 2007 11:09 am Post subject: |
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| When will we hear if the merger was cleared or not? I dont follow either stock but down 20% in the next week? That is quite a loss to take. Should be interesting to see what happens. |
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| Grimreaper |
| Posted: Tue Feb 20, 2007 11:21 am Post subject: |
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CFO
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| geb9696 wrote: | | When will we hear if the merger was cleared or not? I dont follow either stock but down 20% in the next week? That is quite a loss to take. Should be interesting to see what happens. |
It won't just be SIRI n XMSR that'll be down 20% in a week. XMSR still needs to breach taday's high however. I'm wreckin dat'll happun either tamarrah or Th. Everything should be set up nicely come Fri....why?  Da mawkets NEVER took a SIRIous tumble on a Tue, Wed, or Th! You are gonna see some carnage dat'll make ya go WOW! Do you like the way everything is goin EXACTLY as I said it wood concernin da VIX and da Naz? I sho do!  |
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| geb9696 |
| Posted: Tue Feb 20, 2007 11:25 am Post subject: |
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Investing VP
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| So you are thinking for a HUGE down day come Friday? What news is going to cause that? |
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| Grimreaper |
| Posted: Tue Feb 20, 2007 11:42 am Post subject: |
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CFO
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| geb9696 wrote: | | So you are thinking for a HUGE down day come Friday? What news is going to cause that? |
At this point we really don't need a catalyst since da mawkets are EXTREMELY grossly overvalued. But ifn I had ta guess I'm wreckin maybe a collapse of foreign mawkets overnight on Th....that's ifn they set the top here in the U.S. on Th of course....they might not get er dunn till Fri. I know Dubya won't be stoopid enuff to attack Iran so that's out. I wouldn't put one of his patented "terrorist scares" past him like he did with the BS in England though....even though it turned out that da voting public realized his terrorist scares were nuthin more than just that....an attempt to scare eveybody into keepin the status quo in Congress. Dubya is walking on dangerous ground if he attacks Iran I'm wreckin. He'd have to wear a bullet-proof vest at every public appearance during the rest of his lame duck term.  |
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