jasonxctf Posted June 26, 2006 Share Posted June 26, 2006 http://biz.yahoo.com/ap/060626/sirius_sate...e_ceo.html?.v=1 Quote Link to comment Share on other sites More sharing options...
RockRaines Posted June 26, 2006 Share Posted June 26, 2006 QUOTE(jasonxctf @ Jun 26, 2006 -> 02:53 PM) http://biz.yahoo.com/ap/060626/sirius_sate...e_ceo.html?.v=1 XM is twice the size that Sirius is, he may be interested, but XM could buy him before he buys XM. Quote Link to comment Share on other sites More sharing options...
tonyho7476 Posted June 26, 2006 Share Posted June 26, 2006 QUOTE(RockRaines @ Jun 26, 2006 -> 02:58 PM) XM is twice the size that Sirius is, he may be interested, but XM could buy him before he buys XM. They are not twice the size. Neither one is in a position to buy anything...not yet at least. One thing to note...you and I are happy about this Rock. The stocks have really struggled lately...but at least today was a nice day. irius and XM Shares Goosed by Karmazin Monday June 26, 4:07 pm ET Sirius CEO Mel Karmazin Gives Satellite Radio Shares a Push With Buyout Comment NEW YORK (AP) -- Shares of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. jumped Monday after Sirius's chief executive was quoted as saying he'd be interested in buying his larger competitor. Shares of Sirius rose 23 cents, or 6 percent, to close at $4.70 on the Nasdaq, with 85.5 million shares changing hands, more than twice the normal daily volume. XM shares climbed 91 cents, or 6.8 percent, to close at $14.37, on volume of 16.3 million shares, also more than twice normal daily trade. Both stocks have suffered in 2006. Even with Monday's gain, Sirius shares remain down nearly 30 percent since January; XM shares have given up more than 47 percent. Monday's gains came after Mel Karmazin, CEO of Sirius, gave the morning keynote address at a technology conference held at the Museum of Television and Radio in New York. He said he would be interested in Sirius buying XM at the right price, although he acknowledged regulatory issues "would be a question mark," Dow Jones Newswires reported. The company had no further comment. The government would look closely at any deal that seeks to combine the nation's two major satellite radio companies. Sirius said it had about 4.1 million subscribers at the end of the first quarter this year, compared with XM Radio's 6.5 million subscribers. Quote Link to comment Share on other sites More sharing options...
juddling Posted June 26, 2006 Share Posted June 26, 2006 i think that if anyone could pull that deal off it would be Mel Karmazin. Quote Link to comment Share on other sites More sharing options...
RockRaines Posted June 26, 2006 Share Posted June 26, 2006 QUOTE(tonyho7476 @ Jun 26, 2006 -> 03:41 PM) They are not twice the size. Based on their stock prices and 2005 sales, XM is roughly twice the size of Sirius. That is where I got the info for that statement. Quote Link to comment Share on other sites More sharing options...
tonyho7476 Posted June 26, 2006 Share Posted June 26, 2006 QUOTE(RockRaines @ Jun 26, 2006 -> 04:05 PM) Based on their stock prices and 2005 sales, XM is roughly twice the size of Sirius. That is where I got the info for that statement. The bottom line is this...I'm rooting for both to do well, it can only help the whole industry. I think in a few years, satellite radio will be hugely successful. I think the industry as a whole as done quite well, considering where it came from. The idea of paying for radio is still foreign to a lot of people, but once you try and product, it f***ing rocks. How nice to be able to listen to music with no commercials, that is uncensored. And to have talk that is not watched by the FCC. And to get a selection when you live in the middle of nowhere. Also, Rock, did you hear that XM and Sirius are working on units that can pull both signals? That is going to be nice. Go to the store, buy a radio, try both services, decide which you like better, if not both, and then choose your progamming. Quote Link to comment Share on other sites More sharing options...
RockRaines Posted June 26, 2006 Share Posted June 26, 2006 QUOTE(tonyho7476 @ Jun 26, 2006 -> 04:09 PM) The bottom line is this...I'm rooting for both to do well, it can only help the whole industry. I think in a few years, satellite radio will be hugely successful. I think the industry as a whole as done quite well, considering where it came from. The idea of paying for radio is still foreign to a lot of people, but once you try and product, it f***ing rocks. How nice to be able to listen to music with no commercials, that is uncensored. And to have talk that is not watched by the FCC. And to get a selection when you live in the middle of nowhere. Also, Rock, did you hear that XM and Sirius are working on units that can pull both signals? That is going to be nice. Go to the store, buy a radio, try both services, decide which you like better, if not both, and then choose your progamming. Here is the only issue: They cannot combine without other direct competition. The monopoly laws will not allow it. Directv and Echo tried this, even with other smaller competition it was shot down. Unless a third, and equally powerful Sat radio company emerges, we will continue to see the two services. I am all for something that can pick up both signals and both companies have extreme benefits. I love XM's MLB and big ten coverage, but Sirius has other great programs and Howard for "those" people. ( Tony) Unfortunately, we wont see this merger, or takeover any time soon. Quote Link to comment Share on other sites More sharing options...
tonyho7476 Posted June 26, 2006 Share Posted June 26, 2006 QUOTE(RockRaines @ Jun 26, 2006 -> 04:19 PM) Here is the only issue: They cannot combine without other direct competition. The monopoly laws will not allow it. Directv and Echo tried this, even with other smaller competition it was shot down. Unless a third, and equally powerful Sat radio company emerges, we will continue to see the two services. I am all for something that can pick up both signals and both companies have extreme benefits. I love XM's MLB and big ten coverage, but Sirius has other great programs and Howard for "those" people. ( Tony) Unfortunately, we wont see this merger, or takeover any time soon. Oh, I agree, no merger. I wasn't citing the new radios as a clue to that. I think both companies know it won't be a bad thing to work together. I resent being called a 'those' people. Quote Link to comment Share on other sites More sharing options...
Rex Kickass Posted June 26, 2006 Share Posted June 26, 2006 It might very well be a different scenario. If the market can't sustain two satellite services, a merger may be necessary for one to survive. Quote Link to comment Share on other sites More sharing options...
kapkomet Posted June 26, 2006 Share Posted June 26, 2006 QUOTE(Rex Kickass @ Jun 26, 2006 -> 09:58 PM) It might very well be a different scenario. If the market can't sustain two satellite services, a merger may be necessary for one to survive. Those that say it can't happen... it CAN happen, if not partly due to what Rex says. There's other reasons, and Sirius actually may hold the upper hand here. You don't know what venture capital is involved or the back-boardroom deals that may be happening. Quote Link to comment Share on other sites More sharing options...
AbeFroman Posted June 26, 2006 Share Posted June 26, 2006 (edited) I'm an attorney with some (albeit fairly limited) practice in anti-trust regulation... That said, I think there would be enormous hurdles to overcome before the FTC or SEC approved a merger between these two companies. I think the argument that the market cannot sustain two satellite services is a loser... With such enormous barriers to entry in the satellite radio market, the SEC would pretty much be rubber-stamping a long-term monopoly on the market. With each of these companies together comprising over 90% of the satellite market, the legal obstacles they would need to overcome would be extremely substantial. That said, I did have a highly regarded anti-trust professor in law school that told us he once squeezed a merger by with a 99% market share... but I'm sure that didn't have the national focus this type of deal might have. Given the Commission's reticence in other large, high-profile deals, I'd be skeptical of a merger's success. Edited June 26, 2006 by AbeFroman Quote Link to comment Share on other sites More sharing options...
Rex Kickass Posted June 26, 2006 Share Posted June 26, 2006 It could be done really simply. All that Sirius/XM would really have to do to make a merger happen is divest itself of one or two of its combined 5 satellites and return one satellite broadcasting license to the FCC. Doing that, I would wager that the monopoly aspect of the merger would probably get waived. Quote Link to comment Share on other sites More sharing options...
kapkomet Posted June 27, 2006 Share Posted June 27, 2006 There is a lot more to this then just "merging", and it can happen. I'll leave it at that because I don't feel like debating it. My source is someone who works at XM, and it's all I need to know. Quote Link to comment Share on other sites More sharing options...
3 BeWareTheNewSox 5 Posted July 1, 2006 Share Posted July 1, 2006 I think the merger rumor comes out every 6 weeks Quote Link to comment Share on other sites More sharing options...
dasox24 Posted July 1, 2006 Share Posted July 1, 2006 Yeah, I love my XM radio. Being in Tennessee, I am able to listen to all the Sox games, which is a HUGE perk. Although, Sirius offers some things (specifically the NFL), which would make me like them a lot too, I'm sure. That's why I'd love it if they merged and I could get everything. Quote Link to comment Share on other sites More sharing options...
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