In the midst of the merger storm, Citigroup has issued a report reaffirming its 'Buy' rating on Citi analyst Tony Wible issued a research note this morning stating that the recent weakness in the stock is mostly attributable to technical issues ("convert issuance as well as arb trading").
But with the merger and financing now complete, Wible expects that the street will begin to "focus on the fundamentals underlying the business" and that those fundamentals are "better than expected."
Both Sirius and XM announced strong results recently, suggest that "the fundamentals of the business are holding up well despite the weak macro economic backdrop," the Citi analyst said. Wible added that management's guidance for synergies is "conservative" and the firm expects to see revenue synergies from "increased management focus" as well as the a la carte plans
Down 42% in the last 4 days, and these clowns pipe in now? I think I'll take my chances with powerball.
I'm hanging onto my lotto tickets!
I'm hanging onto my lotto tickets!
Sure, why not. You've wiped out a huge amount of money. Had anyone known that they'd dilute the fucking lot of us, we'd have all waited. Jesus Mary & Joseph.
With the big boys now holding so much they are going to stop bashing what they own.
No longer a XM to pump and use Sirius as a whipping Boy to hold up the XM price.
What happens on Thursday when all the old XM stocks including the shorts and naked shorts convert to new Siri/xm stock at a rate of 4.6 to 1. There should be a mad rush to cover... if there are any stocks available to buy (at a reasonable level). All the stock LOANED to Morgan and UBS by Sirius for sale to the SIRI hedgies should be gone and the XM shorties who have to cover should be breaking out in a sweat as they see the new stocks move up FAST. Thursday should be an interesting day. Any thoughts on this scenario?
Just bought my lotto tickets.
This is the same as when SIRI restructured its debt at .43 cents per share. I bought some at that price, and still own them, but wish I had more money at the time. Same with now. This is the time to buy, not sell. Everyone that is selling to today is part of a $550M new investment on this new company. These sellers are investors. I don't see why some people don't seem to get that.
I bought more. As usual, wish I had more money to buy even more.
These companies have been predicting profits for years. By the end of next year they will finally start of have earnings and there will be no looking back after that.
The iPod is a young persons product, perfect for a hot stock. This is a baby boomer's stock, and there is plenty of them around too.
My prediction is that Mell will take this to 30M subs in the next 3 to 5 years and then sell the company to a major media player for around $7 a share.
AC is at it again...
PLEASE shut Anonymous COWARDS DOWN!!!
People should setup accounts and users should be able to suggest removal of non topic comments. Thank you for taking this very important step in shutting down AC's SPAM and insulting comments.
STOP "anonymous coward" postings.
PLEASE. 92% of your users want this to stop!
WOW, stock's down something like %10.
WTF is this Anacot Steel?
Blue horseshoe LOVES Teldar Paper.....
It's all Anonymous Cowards fault. He messed it up for the rest of us. LOL
stop worrying about AC and just ignore him for craps sake! If you have sonethi g to contribute then do so, I'm listening.
stop worrying about AC and just ignore him for craps sake! If you have something to contribute then do so, we're all listening.
Thanks for the Fucking Mel. Just hope you don't run into me on the street.
"we're all listening"
Except for ORBITCAST! 92%, BABY!
We're all listening to his crap!
GET A GRIP ORBITCRAP, AND RUN THIS TRASH OUT OF TOWN.
This SUCKS. We are in the EXACT same position we've always been with this stock....only NOW it's at $1.50 instead of $3.
And with no more merger to look forward to....we have OFFICIALLY flat lined.
Cramer has become an overnight turncoat. Mel hasn't even SPOKEN on tv or changed the webpage yet.
After ALL that waiting....NOT EVEN A POP. Talk about ANTI CLIMACTIC!!!!
You know what it feels like? It feels like us longs were drowning waiting for this merger....holding our breath....EXPECTING that when the stock popped we'd surface and be able to take some life giving gulps of air into our lungs....ONLY TO FIND THAT ONCE THE MERGER WENT THRU....ALL WE SWALLOWED WAS WATER.
I am beyond devastated.
MEL KARMAZIN COULD HAVE EASILY GONE TO ANY FOREIGN WEALTH FUND TO PROVIDE FUNDING FOR XMS DEBT AND TO UNDERWRITE THIS SITUATION.....INSTEAD THIS CORPORATE SCUM SUCKING JIHADIST COLLUDED WITH UBS AND MERRILL TO FUCKIN STEAL THE WEALTH FROM DEDICATED, COMMITTED STOCKHOLDERS.......MEL IS FUCKIN ASSHOLE....ALONG WITH HIS CO-CONSPIRATOR JIM THE JIHADIST CRAMER
MEL KARMAZIN COULD HAVE EASILY GONE TO ANY FOREIGN WEALTH FUND TO PROVIDE FUNDING FOR XMS DEBT AND TO UNDERWRITE THIS SITUATION.....INSTEAD THIS CORPORATE SCUM SUCKING JIHADIST COLLUDED WITH UBS AND MERRILL TO FUCKIN STEAL THE WEALTH FROM DEDICATED, COMMITTED STOCKHOLDERS.......MEL IS FUCKIN ASSHOLE....ALONG WITH HIS CO-CONSPIRATOR JIM THE JIHADIST CRAMER
fellow warrior trapped in the trenches ,
Pocketradio is a chronic problem not only here but many other places all over the net. He can't handle others opinion's on a forum and ego and attack posts others. Everytime he posts (mostly re-posts of false info) he is DEBUNKED for the TROLL he is. He's a proven nut case. Orbitcast will be "92%" better when Pocketradio GROWS UP, till then he's the "trash" fellow members will be removing.
Pocketradio = TROLL
Pocketradio = DEBUNKED
Of course many ANALysts are going to say "buy" now, what do you expect?
They have to try to make some money back on their failed SIRI (and XM) investments.
WOW, down 12% now!!
Geodynamics, Brant Resources, and this is how you repay me!
I gave you everything, I gave you your manhood, I gave you Darien!
Well, looks like the merger through the stock right in the toilet. That flushing sound you hear is billions in stockholder equity rolling down the pipes to the water treatment plant.
Glad I don’t own a single share.
Congratulations. You all got royally screwed by Geckko Karmazen the great…..
Playing the Stock Market is the same as gambling in Vegas or Atlantic City. It is a game of chance . Do you cry like bitches in front of the showgirls if you lose there. Everyone is losing money somewhere be it real estate, the Stock Market, or wherever. Suck it up and do like everybody else and hope it gets better soon.
"Down 42% in the last 4 days, and these clowns pipe in now? I think I'll take my chances with powerball."
I love it!
"PLEASE shut Anonymous COWARDS DOWN!!!"
I love it! LMFAO!
"Pocketradio is a chronic problem not only here but many other places all over the net. He can't handle others opinion's on a forum and ego and attack posts others."
I love it! LMFAO!
PocketRadio
Buy ... Buy ... Buy ...
You ALL need to just buy this stock ...
thereby increaing demand ...
driving the share price UP !!!
Then i will be able to (AGAIN & AGAIN) short the sucker ... and make some real money (AGAIN & AGAIN).
@AC
BTW - check out my updated list, only after 6 weeks:
34. lockheed martin corporation 8
37. microsoft corp 7 39. the boeing company 7
59. general electric company 4
72. citadel communications 3 77. ford motor company 3 78. general motors corporation 3 81. hewlett-packard company 3
86. northrop grumman corp. 3
91. sirius canada inc. 3 92. sirius satellite radio 3 98. apple computer inc. 2
106. cbs corporation 2
115. federal communications commission 2 116. general services administration 2 119. harris corporation 2 127. national aeronautics and space administration 2
145. sun microsystems inc 2
154. us dept of justice 2 243. charles schwab & co. inc. 1
245. chicago mercantile exchange 1
249. cisco systems inc. 1
249. cisco systems inc. 1 256. clear channel (1128170) 1
257. clear channel communications 1
334. embassy of japan 1 348. fidelity investments 1 358. gannett co. 1
376. honeywell international inc. 1
388. information systems u.s. house of representatives 1 408. jp morgan chase & co 1 411. kagan research llc.747 1 442. michigan state government 1
450. morgan stanley group inc. 1
457. national association of broadcasters 1
463. naval command control & ocean surveillance center 1
508. philips electronics corporate it 1
607. radioshack corp 1
644. salomon inc. 1
703. the arbitron company 1
705. the des moines register 1
725. u.s. general accounting office 1 757. usa today 1
768. visteon corporation 1 770. voice of america 1
Plus, many, many more! I only started using Google Analytics six weeks ago, but my blog has been on the Net for a year! I'm loving it! LMFAO!
Love it, keep dropping. Who are you all going to complain about now? Bush, the Dems, DOJ, FCC, Martin, Cramer, etc. You got what you wanted, the demolition of the SDARS industry and the beginning of the end and you wonder why the stock keeps dropping. I love this service and have had it since both companies began but I highly doubt I'll still be a customer 3 years from now. If the merged company can even muster up 25 million subs I'd be shocked. Fun while it lasted, I wonder what new technology is on the horizon...
WOW, down 17%! Now Talk about a DOG with FLEAS.
You guys are really losing your shirts on this Terafly, er I mean SIRI deal....
....Keep on buying, dilute the son of a bitch.
I want every orifice in his fucking body flowing red...
He's flowin' Mel, he's FLOWIN'!
276. congressional quarterly 1
Pioneer is in there somewhere, too!
Trying to debunk me, with you false accusations will not stop visitors to my blog - it's too late! Should I send my Analytics PDF file to Struble, now that he has a blog? LMFAO!
Cramer says the company sold out to bond holders to recover debt on the stock holds backs. The stock is now worthless in the short term:
http://www.thestreet.com/video/10430841/cramer-with-xm-sirius-only-the-bondholders-win.html?puc=quotelh#10430841
Might as well hang on to your shares until 2014:
"Sirius will lend out the shares to affiliates of Morgan Stanley & Co. (MS) and UBS Investment Bank, underwriters of XM's latest refinancing deal, in return for a fee. The company said the offering won't be dilutive to shareholders in the long term because they have to be returned to the company when the bonds mature in 2014. Also, for any shares that are sold short, the banks will take a long position in Sirius to offset it."
Pocketradio,
Please keep your fear and desperation to yourself. Your FUD list is based on your worthless blog of FUD and lies, making it worthless too. If any of those corporations did happen to click on the wrong link and end up at your site, they were only there to have a good laugh at all your fear, desperation and ignorance. The only FARCE is you. Grow up! stop crapping all over the net. You have more than proved your ignorance.
Pocketradio = TROLL
Pocketradio = DEBUNKED
Pocketradio,
Mr. Struble knows all about your blog of lies. You can expect to be served with liable charges soon.
"In the USA, you can be sued for “tortuous interference” if your blog comments defame, encourage harassment or interfere with someone’s normal course of business."
There are limits to the First Amendment
Defamation is seriously punished
Anonymity is an illusion
You are responsible for your own words:
Malicious Intent
Reckless Disregard for Truth
Linking to a Libelous article
Using comment areas in blogs
It's clear your joke of a blog not only puts Blogger in the sh*t, but also if/when Mr. Struble wants to take action you'll be iBiquity's little bitch. Might want to send a email to Mr. Struble begging for his forgiveness and also while your at it remove the FARCE that more than proves you liable.
Grow up! Your fear, desperation and ignorance is not wanted here.
Pocketradio = TROLL
Pocketradio = DEBUNKED
"Grow up! stop crapping all over the net."
Yea, that will stop me! LOL! Nothing matters now - the damage is already done, with over 4,000 links on the Web. I wonder, if the Congressional Quarterly is going to be doing a story on the HD Radio farce? Interesting, visits from the US House of Reps., Congressional Quarterly, FCC, GAO, DOJ, US Courts, GSA - any ideas on what could be cooking?
Mr. Struble knows all about your blog of lies. You can expect to be served with liable charges soon./iIn the USA, you can be sued for “tortuous interference” if your blog comments defame, encourage harassment or interfere with someone’s normal course of business."
LOL! Tell me my name, phone number, and address. All I do is collect and organize newpaper articles and blogs - I do not post personal opinions, allow comments, or post copyrighted material. LOL! Too bad - my anonymous blogger First Amendmdnt Rights would stand up in court. I already researched all of this, before I started the blog. Also, I have not violated any of Google's TOS requirements. Too bad!
Investors know why the investments are close to junk?
Sirius Satellite Radio Inc. chief Mel Karmazin earned himself a comfortable $32.2 million in 2007, according to the company's recent SEC 10-K/A filing. That's $2 million more than XM's executive management team, combined.
Neither Sirius, nor xm has ever made a dime.
The value of the all-stock merger has declined from more than $4.6 billion when it was first announced to just $2.76 billion at closing, following the declining value of both companies' stock.
Neither Sirius, nor xm has ever made a dime.
Tuesday 7/29; shares of the newly merged Sirius XM Radio fell 16.05, or 30 cents, to $1.58.
Neither Sirius, nor xm has ever made a dime.
"Every one of our constituencies is a winner. Combined, Sirius XM Radio will deliver superior value to our shareholders. By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth," said Mel Karmazin, chief executive of Sirius XM.
Neither Sirius, nor xm has ever made a dime.
Those beleaguered shareholders -- who have seen Sirius shares drop from above $60 in 2000 to the current $1.58 and the now-defunct XM Satellite Radio tumble from its high above $44, also in 2000, to Monday's final $8.17
Neither Sirius, nor xm has ever made a dime.
Combined with Howard's original five-year, $400 million contract and the $220 million in stock Sirius granted him last January, the value of Stern's total compensation has just topped $700 million. Sirius shares closed at $6.57 on Jan. 9, 2006, Stern's first day on the air. It has lost nearly 50 percent of its value in the year since, closing yesterday at $3.71.
In total, Stern has been awarded 56.5 million Sirius shares for meeting subscriber targets - 22.1 million yesterday and 34.375 million last year.
Though Stern isn't required to report his holding to the SEC, a Sirius filing yesterday noted that he currently holds 39 million shares, meaning he's sold 17 million shares on the open market. (NYPost January 10, 2007)
Neither Sirius, nor xm has ever made a dime.
When do the claimed expected "cost savings of approximately $400.0 million in 2009, to post adjusted earnings before interest, taxes, depreciation and amortization exceeding $300.0 million in 2009 and to achieve positive free cash flow for the full year 2009" savings start Mel?
And absolute and complete abomination since 2000. Every quarter a new song, every analyst has a high rating, yet it never comes. This deep sixed company is going tits up boys. Do you really think a stock at 1.59 has any merit? .... You can wipe your ass with 1.59.
"Those beleaguered shareholders -- who have seen Sirius shares drop from above $60 in 2000 to the current $1.58 and the now-defunct XM Satellite Radio tumble from its high above $44, also in 2000, to Monday's final $8.17"
Hey, that sounds exactly like most of terrestrial radio's penny-stocks - Emmis, Citadel... CCU was at one time $90/share, and now about $30 - still way over-priced, compared to the other major radio stocks in the penny-stock range. Radio is dead! LOL!
AC is at it again...
and... I am absolutely 100% NOT in anyway related to PocketRadio! SO STOP THE RANTING!!! AC!
**** ORBITCAST - PLEASE STOP AC AND HIS PERSONAL ATTACKS **********
PLEASE shut Anonymous COWARDS down!!!
People should setup accounts and users should be able to suggest removal of non topic and insulting comments. Thank you for taking this very important step in shutting down AC's SPAM and insulting comments.
STOP "anonymous coward" postings.
PLEASE. ASAP! 92% of your users want this to stop!
********* THIS IS BEYOND CHILDISH and NEEDS TO STOP **********
11/13/07
XM and Sirius on Tuesday took two key steps closer to having their merger finalized as shareholders from both companies gave their blessing to the deal, which is still awaiting regulatory approval.
Sirius shareholders voted at a special meeting to amend the company's certificate of incorporation to allow the merger and approved the issuance of the stock needed to consummate the deal, which calls for XM shareholders to receive 4.6 shares of Sirius for each of their XM shares.
Later in the day, XM announced its shareholders also approved the merger-related questions placed before them at a special meeting in Washington, D.C., where the company is based.
Was the koolaid flowing at both voting sites? Was there a haze of pump and dump?
Ask and you shall receive.
what difference does it make if you log on as an AC or a name?? you still don't know who they are lol.
You know who i am.
Why does this nut:
Anonymous Coward | July 29, 2008 1:00 PM, Anonymous Coward | July 29, 2008 1:39 PM, Anonymous Coward | July 29, 2008 4:09 PM, Shorty | July 29, 2008 4:18 PM, Anonymous Coward | July 29, 2008 4:35 PM, Anonymous Coward | July 29, 2008 4:42 PM, Anonymous Coward | July 29, 2008 5:59 PM, Keep it CLEAN and get control of the BLOG. | July 29, 2008 6:35 PM, aka Pocketradio think Orbitcast wants his delusion's of grandeur, or his attacking ego posts? Why does this child think he can crap all over Orbitcast and the rest of the net? Then blame others for his crap? He is a joke, his blog is a joke, and he's so fearful and desperate when it comes to the TRUTH and REALITY, he feels his FUD needs to be protected so more ignorant might believe the ramblings of a nut job named Pocketradio. Pocketradio needs to learn others have opinions other than him which are allowed here and he has no control over. As several fellow posters have told him he should worry about himself and post on topic, not crap post about his thoughts of others. Liable FUD based blog, now he's spreading his liable actions to Orbitcast. TIme to take out TRASH.
Pocketradio = TROLL
Pocketradio = DEBUNKED
Troll, Debunked, I'm smarter than you, ignorant, blind satrad fanboys, woowoo, uneducated, 'merge' monopoloy, 0.0, blahablahablah
Jesus christ this site sucks. I no longer enjoy this website b/c of the board whores that post redundant, useless garbage and think they're so freaking intelligent.
PS PATRICK RODGERS STOP SHOUTING AT EVERYONE. YOUR THE MORON WITH THE LIFE SAVINGS INVESTED IN SUCH A VOLATILE STOCK. SUE YOUR FUCKING STOCKBROKER.
"Every one of our constituencies is a winner. Combined, Sirius XM Radio will deliver superior value to our shareholders. By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth," said Mel Karmazin, chief executive of Sirius XM.
Hey Mel..... FUCK YOU!
Why isn’t Mel on CNBC or the mainstream media?
I find that outrageous. Talking to Stern is great and all…but COME ON!
18 months we’ve been waiting for Mel to speak to us. Talking to a bunch of retard Stern fans isn’t exactly going to change hearts and minds.
Mel doesn’t need to speak to the choir….he needs to speak to the doubters and naysayers on wallstreet and the battle fatigued on main street.
Wheres the plan Mel? Wheres the celebration?
VERY dissapointed.
Heck…Mel hasn’t even updated the Sirius website yet! You’d think after 18 months they’d have one designed and waiting in the wings.
Makes me nervous to think Mel and Sirius have been twiddling their thumbs for 18 months instead of developing a post merger plan.
I thought Mel was a “MASTER”?
At least I'll never have to watch Jim Cramer again.
Hopefully they'll come out and explain to us shareholders how great things are on the horizon and that if we hold on for three more years, we may be able to get back to the $2.85 we were at a couple months ago. Great news for your new XM converts that now own the equivalent of $6 XMSR as opposed to $17 XMSR.
This has to be a fucking joke.
I have become a TOTAL CYNIC when it comes to this stock.
So when I hear an ANALYST is MAINTAINING their BUY rating on Sirius....I CAN ONLY THINK....
THAT THIS IS A CONSPIRACY. THAT THIS "ANALYST" is in cahoots with those that are bashing the stock. WHY? Because they NEED TO KEEP THAT LITTLE BIT OF HOPE ALIVE. TO KEEP PEOPLE BUYING OR HOLDING....SO THE SHORTS CAN CONTINUE FEEDING.
And this ANALYST won't be the last. THERE WILL BE MORE "GOOD" reports.
But this has happened AGAIN AND AGAIN with this stock. What's happened? EVEN ON GOOD NEWS it's GONE DOWN. Because people jumped in and then BAM! The CONSPIRACY PLAYERS who were waiting in the wings POUNCED and the stock went down. Like when GS downgraded the stock right after people were drawn in on good news.
AND they are doing it again. Of course they don't have the HOPE of the merger to lure them in anymore. That excuse outlived its purpose....thats why the merger was FINALLY approved. The damage was done.
But the corpse is still kicking. Theres still some life to be extracted. So thats why you still get "POSITIVE" reports like this.
The cycle will continue like this with the CONSPIRACY PLAYERS using HOPE and then ATTACKING....until EVERY LAST DROP IS EXTRACTED from the shareholders.
UNTIL the COMPANY declares bancrupcy and ALL YOUR SHARES ARE FINALLY WIPED OUT FOR GOOD>
Liam, I feel your pain but that's some funny shit.
I am so hoping to get back up to 3 and sell at a big loss rather than wait for bankrupcy and loose it all.
The reason you want to post under anonymous coward is so you can post crap like this...
"
Why does this nut:
Anonymous Coward | July 29, 2008 1:00 PM, Anonymous Coward | July 29, 2008 1:39 PM, Anonymous Coward | July 29, 2008 4:09 PM, Shorty | July 29, 2008 4:18 PM, Anonymous Coward | July 29, 2008 4:35 PM, Anonymous Coward | July 29, 2008 4:42 PM, Anonymous Coward | July 29, 2008 5:59 PM, Keep it CLEAN and get control of the BLOG. | July 29, 2008 6:35 PM, aka Pocketradio think Orbitcast wants his delusion's of grandeur, or his attacking ego posts? Why does this child think he can crap all over Orbitcast and the rest of the net? Then blame others for his crap? He is a joke, his blog is a joke, and he's so fearful and desperate when it comes to the TRUTH and REALITY, he feels his FUD needs to be protected so more ignorant might believe the ramblings of a nut job named Pocketradio. Pocketradio needs to learn others have opinions other than him which are allowed here and he has no control over. As several fellow posters have told him he should worry about himself and post on topic, not crap post about his thoughts of others. Liable FUD based blog, now he's spreading his liable actions to Orbitcast. TIme to take out TRASH.
Pocketradio = TROLL
Pocketradio = DEBUNKED
"
STOP ANONYMOUS COWARD POSTINGS!!!! When users post crap like this...
THEY SHOULD BE REMOVED!!!!
THAT IS WHY! 92% ASSHOLE!
Add "THE REASON WHY | July 29, 2008 11:46 PM" to Pocketradio's multiple names he hides behind while he posts his fear and desperation, off topic ego posts.
TIme to take out TRASH.
Pocketradio = TROLL
Pocketradio = DEBUNKED
XM to payoff $600 million in debt
Now that the merger clock is done, I guess I get to start a new one...the countdown until I put a bullet in my head. Keep this up, Mel, and not only will I no longer be an investor, but I'll no longer be a subscriber because I won't be able to afford $13 if this POS keeps tanking.
Complete crap! Should be removed...
"
Add "THE REASON WHY | July 29, 2008 11:46 PM" to Pocketradio's multiple names he hides behind while he posts his fear and desperation, off topic ego posts.
TIme to take out TRASH.
Pocketradio = TROLL
Pocketradio = DEBUNKED
"
At the current share price the new Sirius XM company is s serious buyout candidate. It could be purchased dirt cheap even assuming a modest surcharge of a dollar or two. It's officially one tidy package now where the entire US satrad spectrum could be purchased in one swoop lock, stock and barrel.
When does the iphone app for "sirius xm" become available? Does anyone know?
My favorite over the years have bee "Break Even at 4.5 Million subs"!
The poo still flows.
Investors give new Sirius-XM combo rude greeting
Associated Press
July 29, 2008, 5:08PM
As the purchase of XM Satellite Radio by larger rival Sirius Satellite Radio closed today, questions remained over whether the combined company can handle its $3.4 billion in debt — including $1.1 billion due next year.
Also murky was how quickly the two companies can mesh their technologies without angering consumers.
Most radios that play programming from Sirius and the former XM Satellite Radio Holdings are sold for cars, in before- or aftermarket installations, and automakers are notoriously slow to integrate new audio technology.
The nation's only two satellite radio companies have combined to become Sirius XM Radio, based in New York, and trades under the ticker symbol SIRI, which used to belong to Sirius. Mel Karmazin, the chief executive of Sirius, will take the same position at the new company.
Investors sold off Sirius shares today at their lowest price in nearly five years.
"The new company is going to face a lot of hurdles, both operating as well as financing," said Tuna Amobi, a Standard & Poor's analyst in New York.
He was disappointed by Sirius' accumulation of 280,000 net new subscribers for the second quarter, not as robust a figure as he had hoped for. Amobi is also concerned about higher interest payments.
Sirius' $1.3 billion of debt hasn't changed, but XM has taken on more debt and replaced some existing debt with other borrowing that carries much higher interest rates. XM has $2.1 billion in total debt, up from $1.7 billion at the end of March, according to company filings with the Securities and Exchange Commission.
Analysts had been counting on savings from the combination to offset higher debt costs, especially since neither company has ever made an operating profit.
While Sirius expects to save $400 million and post adjusted earnings before interest, taxes, depreciation and amortization of more than $300 million next year, its comments about free cash flow troubled analysts.
Sirius expects to post positive free cash flow in 2009 but only after excluding satellite capital expenses. That implies its free cash flow will be negative if satellite expenses are included, said Shilpa Parandekar, senior bond analyst at Moody's Investors Service in New York.
She also noted that about $1.1 billion of debt is due in May 2009. Both companies' credit ratings are under view for a possible downgrade.
"We felt the momentum was downward," Parandekar said.
As they waited one and a half years for regulatory approval, the companies also have remained silent on many of the details of how they would combine their programming.
One known consumer benefit is the new ability to pay for only the channels one chooses, known as a la carte programming.
That service will require new or modified radios, and executives promised to sell such radios available at retail within three months. But most new satellite radio customers don't buy their radios at retail because they come pre-installed in automobiles.
The companies haven't offered a timeline for automakers to install radios that allow a la carte programming, said Bob Williams of the Consumers Union, which opposed the merger.
"The (satellite radio) industry has a history of promising things and then letting it go by the wayside," Williams said.
Nathaniel Brown, a spokesman for XM, declined to comment on programming. But the company has said several new options, including a "best of both" service for $17 a month — compared to the current price for one of the services at $13 a month — will be available to customers with older radios.
Sirius and XM have refused to say which programming that service will include.
For instance, there is no guarantee that Howard Stern will be available to XM customers or that Sirius customers will see Major League Baseball games.
Combining all sports programming onto one network could prove difficult. For example, XM provides NHL coverage and Sirius coverage of the NBA. Because those seasons overlap and so many games are played every night, it may prove difficult to find bandwidth to broadcast every game.
Also, while it may seem obvious that the new company would include popular programming like Stern's show or Major League Baseball in its "Best of" package, XM and Sirius never disclosed whether the contract with Stern, for example, would require higher payouts if more people can hear him.
So the new company's costs could rise if it makes its top-tier talent accessible on both services.
Williams said such unanswered questions ought to compel the FCC to regulate the companies closely as it moves forward.
"It really calls for the FCC to not just sit on the sidelines," he said. "We don't have much reason to think they actually will get involved, but they really need to be on the case."
Add "Posted by: More reasons... | July 30, 2008 1:21 AM" to Pocketradio's multiple names he hides behind while he posts his fear and desperation, off topic ego posts.
Time to take out TRASH.
Pocketradio = TROLL
Pocketradio = DEBUNKED
"At the current share price the new Sirius XM company is s serious buyout candidate. It could be purchased dirt cheap even assuming a modest surcharge of a dollar or two. It's officially one tidy package now where the entire US satrad spectrum could be purchased in one swoop lock, stock and barrel.
Posted by: Paul in FL | July 30, 2008 1:28 AM"
That might be what Mel is hoping for, he knows he's got a media dud on his hands. The expanding mound of debt alone is going to be a bitch to overcome. Pump and Dump.