Sirius/XM Merger

[DWS44]

Interesting...From Business week:

Shares of satellite radio operators XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. rose Friday, on speculation that the companies might merge or combine in another way.

Rest of the story: http://www.businessweek.com/ap/financialnews/D8MJTQH80.htm

 

[damaged]

Probably just some 'talk' that was put out to raise share value.

 

[charper1]

Yep, I agree, and to me, given the current performances & quality of both (not just the sub #'s), I sure wouldn't press to have XM be the one taking over Sirius. I think they both are better left as competitors.

 

[Sirius_Rich]

There is a lot more teeth to this rumor than is apparent. The CEO's of both companies are talking and to each other. It will not be XM taking over SIRIUS, imo.

 

[DWS44]

It will not be XM taking over SIRIUS, imo.

I certainly hope you're right! :up

 

[hwkn]

If a merger does happen[not too likely imho]i hope they don't mess with the playlists on the music channels too much[if it ain't broke don't"fix"it].

 

[reddice]

Sirius is terrible. If Sirius was to buy XM I will be gone.

Lets hope it is not approved. We need to have competition.

 

[Spize]

I have both. I have a sirius I pay for, and an XM I get for free as a dealer. I listen to the XM about 1 time each month, and the Sirius daily. XM needs to get more content and pay less for it. (I.E. find some new talent for talk that isn't through the moon to hire).

Oprah for 50 mil? Stupid, will bring mayb 30-40 long-term subs(not k, the actual number)

Stern for Sirius for 500mil? Good move, gave the marketshare of new subs edge to Sirius, most companies would kill to have a move of market share from 35-65 to 65-35 for only 500 mil. (Pepsi anyone?)

Sirius has a better business plan/model and a quicker reaction time to adversity.... XM has better technology and reception.

Together these companies would be a monster, but they are not, and probably will not merge unless a third player comes into the market.

 

[xmlv]

Hi, new guy here.

XM subscriber almost 2 years now, and I have a question no one seems to be addressing in the midst of all this XM/Sirius merger talk.

Depending on which company takes over the other, how will this affect subscribers of the taken-over company? Will they have to buy the buyer's receivers? Will there be a way to modify the receivers to be compatible to both systems? Simply put, if Sirius takes over XM, will my receivers become worthless?

Or are the merger talks in too early a stage for there to be any contingency plan yet?

 

[charper1]

1. WELCOME!

2. Way too early to worry about; and although maybe more serious talks than even, I still see it as NOT happening; or at the very least, 2+ years away.

3. Likely the #2 (the purchased company subscribers) would be in some swap-out program IMHO. AND it better be a 110% free swap.

 

[Sirius_Rich]

In my opinion there are misplaced worries about lack of competition should Sirius and XM merge. The competition that will keep the combined companies sharp and on its game pricewise and contentwise is the iPod, terrestrial radio, internet radio and HD radio.

 

[minorthr]

In my opinion there are misplaced worries about lack of competition should Sirius and XM merge. The competition that will keep the combined companies sharp and on its game pricewise and contentwise is the iPod, terrestrial radio, internet radio and HD radio.

To bad you do not run the FCC because they do not look at it that way. They view it just like the E* and D* merger.

 

[BobMurdoch]

In my opinion there are misplaced worries about lack of competition should Sirius and XM merge. The competition that will keep the combined companies sharp and on its game pricewise and contentwise is the iPod, terrestrial radio, internet radio and HD radio.

Charlie tried to make this argument when he wanted to take over D*. (listing the cable companies as competition in a "multichannel provider" marketplace). Didn't work out too well for him.....

 

[Sirius_Rich]

If what I was told is true, Charlie missed the merger by one vote. Cable is a lot stronger now and internet TV is coming. Charlie may be able to get it done now as satellite radio. But what do I know, I am just a consumer.:tux:

 

[Peter Parker]

The FCC Chairman has come out against the possibility of a merger. http://www.multichannel.com/article/CA6408149.html?display=Breaking+News&referral=SUPP


that does not necessarily make one oimpossible and it says nothing about whether one isa good idea or not but it does make one at this time considerably less likely.

 

[BobMurdoch]

So much for the merger talk......

 

[Scott Greczkowski]

Actually, today is a different day...

http://www.247wallst.com:80/2007/01/fcc_lightens_it.html

Sirius and XM just have to ask for a rule change which would probably be granted.

What a difference a day makes.

 

[Peter Parker]

Well hold on there. If you read that entire article it mentions that the changes that woudl be required are unlikely.

Of course the article also says that the feds have not blocked amerger in 7 years and i don't believe that is acorrect statement.

 

[BobMurdoch]

I'm sure Charlie and the $600 million hole in his pocket he (and we) had to pay spurred him to throw the paper down in disgust when he read that. I just imagine how much better the bandwidth would be if that merger had been allowed to go through....

Edit: actually I don't think they intentionally blocked it, they merely suggested that they definitely would which was enough to kill the deal...

 

[Peter Parker]

The FCC did indeed reject the merger. They did so before the Justice Department acted. Here is a link http://pcworld.about.com/news/Oct102002id105819.htm So i suppose it depends on how you define the terms. but i suspect taht other mergers have been blocked in that timeframe but I am not sure.