Goldman Sachs is joining the rising chorus of analysts who claim that the Department of Justice is nearing approval over the Sirius and XM merger.
On Tuesday, Stanford Group said the DOJ is "near a ruling" on the satellite radio merger. Then on the following day, Stifel Nicolaus issued a note stating "increasing chatter" surrounding the pending DOJ ruling.
Today, Goldman Sachs chimes in stating that channel checks indicate that it now appears "less likely that the DOJ will block the merger."
"Longer term, merged or unmerged, our outlook for satellite radio is cautious given our view of unrealistic cash flow expectations, and hence valuation risk," he said in a client note.
[AP, 24/7 Wall St via Orbitcast Forums]
Analysts if they were any good would see that Sat radio is not going to be just Sat radio. Much bigger things are in the works.
They are going to have multiple revenue sources.
Some must know but do not want to say at this time.
This story is getting boring, as nothing has happened for a year and every few days keep hearing "their getting closer". we will be revisiting this again in 6 months.
just think, when you go to sleep tonight, and wake up tomorrow you will definitely be closer to a decision...see I should be an analyst..365 days, what the hell could you be verifying for 365 days...If they vote no after all this time that would just be wrong to these two companies...
If the GOV. was worried about consumers they would do something about the oil price that is killing the Country. A satellite radio merger could be so bad but the price of oil is no problem?
good point john...more proof that this govt doesn;t give a shit about you, your family, the soldiers, hard workers, patriots, our economy, etc...
But back to the GS comment. They are right. Dispite the potential of this company, they currently carry heavy debt load and nothing to forcast alternative streams of revenue. They could be in the whole for 5 years at this rate. They need to step it up and I dont doubt that this merger is holding them back. What they will be saving alone is enough to boost the stock price.
In 1999 most thought that few would subscribe. In 2002 most thought that the programing and sound quality would never match consumers needs. In 2005 most thought a merger would never be proposed. In 2007 most thought a merger wouldn't be approved. In 2008 only GS thinks no value will be created.
Satrad continues to add 3.0 million per year worth almost 1/2 billion in revenue combined.
This is happening without the cash flow to load the majority of the 16.2 million cars manufactured per year.
Sirius IS buying XMSR which will be tits up without a merger.
Lastly, whatever Homer says is crap as he's a XMSR shill IMO.
I saw some of the XM flunkies at the Grammy's the other night (you know who you are). I can't wait for the merger to go thru so Mel can take charge and stop the plundering at XM. These bunch of yo-yos are starting to make XM look like Tyco.
Bring on the merger!!
I saw some of the XM flunkies at the Grammy's the other night (you know who you are). I can't wait for the merger to go thru so Mel can take charge and stop the plundering at XM. These bunch of yo-yos are starting to make XM look like Tyco.
Bring on the merger!!
Hello, of course I came to visit your site and thanks for letting me know about it.
I just read this post and wanted to say it is full of number one resources. Some I am familiar with. For those who don’t know these other sites they are in for a treat as there is a lot to learn there.