Is the "largest insider purchase ever" at XM Satellite Radio an indication of the increased chances of a Sirius-XM merger? That's what the Wall Street Journal is suggesting in an article today.
XM director Jeffrey Zients reported Friday buying over $3 million worth of XMSR shares.
Zients paid $11.14 a share for 270,000 XM shares last Wednesday, according to the Securities and Exchange Commission filing. The purchase represents the largest reported purchase by an insider since XM went public in 1999.
So is this an indication some "insider knowledge" that the XM-Sirius merger will go through? With a decision expected to be several months away, that seems like a stretch to many.
Another possibility is that it's an indication of the pending decision by the FAA to revamp its air traffic control system, of which XM is an integral part of Raytheon's proposal. The FAA is expected to announce the multi-billion dollar decision this week.
XM superstar-spokesman Chance Patterson said Mr. Zients "did not want to comment" on his stock transaction. The insider purchase is the first at XM for Zients, so maybe it just seemed like a good time to buy?
What's your opinion?
if Mr. Zients was acting on non-public information, which knowledge of merger approval would most certainly be, the SEC would be on him like flies on Rehr. this would be too obvious.
hmmm...does Mr. Zients have a shareholder requirement he is trying to satisfy as a part of his directorship? when is/was XM's insider purchase window? is this Mr. Zients' first purchase window, or did he let one pass priort to this one?
lol...don't look too far into this, guys, unless *all* of the facts are in...
Better that Zients transaction was a buy rather than a sell of $3 million shares of XM.
It could just as likely be an indication that this individual, who is clearly knows more than the rest of us about it, believes the merger is likely to be rejected.
It would indicate "merger optimism" only if one believes the merger is a good thing for the industry. I believe most XM listeners and shareholders oppose the merger.
Hey, what if GM was about to go 100% factory install?
What If CFBE was attained?
What if Imus was about to go on the air at XM?
What if the RIAA lawsuit was settled?
What if Raytheon was about to get the FAA contract?
What if XM were invited in to the NAB? (Gasp)
What if Warren Buffett just aquired 40 million shares?
What if Elvis were still alive?
And Stackpointer, I think you are correct, As an XM shareholder I do not want the merger.
Ryan, the purchace means nothing in reference to the merger. It only means a director is happy and thinks its a damn good investlment. Thats a change from 6-12 months ago and that alone is notworthy.
i agree with all possiblilities Jeff but i think shareholders are mostly in favor of this as they are looking to have a stronger company(higher share price)
Listeners have a different opinion though, which is against
I think a lot of folks "assume" XM shareholders want the merger. I for one do not. In fact, as an XM listener I don't want it either. I don't like: Howard Stern/Mel Karmazin/Sirius Programming. Competition is healthy in all areas.
Buy! The stock market is "like a box of chocolates". So this is just as good a reason to buy as any. Plus buying now might give you a better cost basis verses a higher purchase price you may have bought shares for in the past.
the Forbes profile.... interesting
Jeffrey D Zients
Director at
XM Satellite Radio Holdings Class A
Washington, D.C.
SERVICES / BROADCASTING - RADIO
Director since May 2006
40 years old
Jeffrey D. Zients has served as a member of our Board of Directors since May 2006. Mr. Zients leads an investment company that focuses on public and private small-cap companies. He served as the Chairman of the Board of The Advisory Board Company and Chairman of the Board of The Corporate Executive Board Company, two business-to-business content companies from June 2001 to November 2004 and January 2000 to April 2001, respectively. From July 1998 to June 2001, he served as Chief Executive Officer and from 1996 to July 1998 he served as Chief Operating Officer of The Advisory Board Company. Mr. Zients currently serves as a member of the Board of Directors for Revolution Health, a holding company investing in consumer-driven healthcare, Best Practices, a provider of emergency medicine outsourcing services and Timbuk2 Designs, a messenger bag and apparel retailer.
Nothing unusual at all here. Mr. Zients was very well off before the purchase.
I believe he also had ventures in MLB, before his tenure with XM.