And the waiting continues...

Friday, February 22, 2008 at 11:08 AM
Tags: 2, XM

XM, Sirius merger
A quick glimpse at the Merge-O-Meter shows that it has been 367 days since the Sirius-XM merger was announced.

And the Wall Street Journal Deal Journal Blogs has assembled together an interesting set of metrics that put the whole transaction into perspective.

What Deal Journal did was take a look at all the merger/acquisition activity (courtesy of FactSet MergerMetrics) since the Sirius-XM merger was announced, and they came up with a series of numbers. And since I'm a LOST fanboy, I figured I'd make those numbers look like the countdown clock... just because.

So here goes...
349.gif
349: The number of announced definitive full acquisitions of US publicly traded companies, since the Sirius-XM announcement.

230.gif
230: The number of those deals that were completed.

97.gif
97: The number of those deals still pending.

22.gif
22: The number of those deals that were withdrawn.


110.gif
110: The average number of days a completed deal was pending.

320.gif
320: The number of days the longest deal was pending (Somanta Pharmaceuticals and Access Pharmaceuticals) since the Sirius-XM merger was announced.

35.gif
35: The number of days it took Pitney Bowes $437 million acquisition of MapInfo to close, the shortest period of time a deal was pending.


[WSJ Deal Journal via Orbitcast Forums]

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Comments

LOST rules...you need to have a forum for sat radio LOST fans.....

Add one more digit to the number of deals withdrawn. This is what it'll come down to I predict, as both companies will walk away and move ahead. And all you doom sayers, this will not result in the end of satrad.

If/when they stop pushing the button that keeps this waiting game going there is probably going to be some kind of electromagnetic anomile and all sorts of crazy s*** is gonna happen.

Oh, Boardroom Jimmy -

You are right and wrong at the same time.

You are right that satrad will not end. I believe irrespective of the outcome of this merger, even if the current companies file for reorganization in bankruptcy, sat rad continues.

What will happen, though, is that the companies as we know them today will cease to exist because of the fact, not conjecture, that the merger was their last effort to try to turn around the horrible financial situation that each company is in.

So, to the extent that XM and Sirius remain independent companies and their assets are not acquired by a third company in bankruptcy, I respectfully believe you're wrong.

XM cut its field team for Walmart to save its ever lower supply of cash. I can tell you from sources in the company that all field team support, except possibly the car side of the business will be eliminated if the merger is not approved.

Because of the current credit crunch on Wall Street, these companies know that they won't be able to borrow money on the street and with a constantly decreasing pps, the issuance of new stock is not an option. Why else do you believe that that the credit facility with GM was re-written.

All that says to me is "the only way to save this company is to shoot it in the head." No - the only way to save these companies, merged or not, is a strategy for success including effective marketing and promotion, compelling content and interesting hardware. Plus it should SOUND GOOD, at least competitive with CDs or other consumer digital audio sources.

Grinch -

If after 7 years the content hasn't been compelling enough, and sales continue to slow, what is the solution. Didn't XM try marketing directly in the malls and end that. Seems to me that this might be like selling HDDVD after the BluRay announcement.

202: The first channel to be static when the merger is approved.

Down goes 0.0. Down goes Ron & Fag. Down goes tranny sucking Norton.

Are you thinking of cheating on your wife?





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