Sirius and XM complete merger; New company name chosen - Orbitcast

Sirius and XM complete merger; New company name chosen

| 64 Comments

Sirius XM Radio Inc.

The merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. has finally closed, and the two companies are now one. But the question on millions of peoples' minds is: what will be the new company name?

Well, now after over 500 days, we finally know. The new name of the combined Sirius and XM will be: Sirius XM Radio Inc.

Yes, that's right. Sirius XM Radio. I hope that's not a surprise, because both services will need to continue operation for the foreseeable future. So it only makes sense, though it does feel slightly... uninspired.

The combined company's stock will continue to be traded on the Nasdaq Global Select Market under the symbol SIRI.

Based on revenue, Sirius XM Radio Inc. will be the second largest radio company, and with a combined 18.5 million subscribers, it is now the second largest subscription media business in the U.S.

"I am delighted to announce the completion of this exciting merger between Sirius and XM," said Mel Karmazin, CEO of Sirius XM Radio. "We have worked diligently to close this transaction and we look forward to integrating our best-in-class management teams and operations so we can begin delivering on our promise of more choices and lower prices for subscribers."

"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. Our laser focus on subscribers will continue and listeners can be assured that there will be no disruption in service. We also believe that the completion of the merger will eliminate any confusion that has been lingering in the marketplace," added Karmazin. 

64 Comments

Losing 65% of my investment for trusting you while holding three years... nice payback Mel. Thanks.

Fuck your Sirius XM

Someone should start a viral "Save SatRad" campaign. Subscribers that can afford to do so, should support the company from the retail side (through multiple ADDITIONAL FULL SUBSCRIPTION PACKAGES) to boost revenues, growth, industry penetration, awareness, accessibility and positive financial buzz.
Get whatever you can comfortably afford (within reason). Multiple that by millions of subscribers and you have manufactured artificial growth until the company can realize their synergies and become profitably competitive in a crowded and converging market environment. I'd be willing to sign up for 2, maybe 3, for as long as it takes. Who else is in?
Give it as gifts to friends, relatives, colleagues, teachers, students, girlfriends, boyfriends, wedding gifts, graduation gifts, etc. Revenues and cash flow will rise. Wall St. $$$ will follow and the stock price will rise once the wake of the merger dissipates. The financial performance and future guidance will get better. It's just a matter of time. Remember when AAPL was $3 n'change back in Dec. 1997? Or $7 n'change back in 2003?
Do you really think Satellite Radio is going anywhere? I truly believe it is a commercially viable platform. It would have been nice to make a quick buck, but if you truly believe in the medium as a future commercial success, hang in there. Evangelize it. Be patient. Good luck.
I'm neither belligerent nor confrontational, but I'm not above some innovative guerilla tactics. If you've lost a lot of money on this stock like I have, this seems like a way we can fight back instead of sitting here helpless with our hands and hard earned money tied up. Little bits multiplied by millions of stakeholders (consumers, content providers, artists, corporations, OEMs, shareholders, etc.) who want to see this medium and content survive and thrive. It's a platform in outer space for Christ's sake! How f'n bada$$ is that?! It's the future and $IRI + XM$R = IWIN (long term) :o)

Let me get this right, EVERYONE knew that they invested in a company with VERY HIGH Debt. They knew that they needed to raise money, and when Sirius issued more shares, which does not dilute the shares, it raises a whole bunch of cash and we think it's a negative thing? Now call me stupid, but I have to say this is a great thing for Sirius and the satellite industry. You CRAMER lovers are just waiting for a pop and have no idea how great this is for the company.

If the news would have said,"Bank gives Troubled Satellite Industry 375 million (with very high intrest rate)" EVERYONE would be saying it was great? What a bunch of greedy sons of bitches you guys are.

NOW THEY HAVE CASH FOR PEOPLE LIKE O&A you DUMB CRAMER LOVING F%^&'s!!!

WAKE THE (BEEEEP) UP. THIS IS A BUYING OPPORTUNITY OF A LIFETIME.

Karmazin is a crook. He used residual shareholder value to complete this deal. Let it be noted: Mel was recently interviewed on CNBC, the business of innovation, and he said that a companies stock is a scorecard of how well a company is doing. Mel, you suck.

So much for CEO of the year... you jackass.

And yesterday folks were howling that Sirius wasn't responding adequately to the FCC's OK. Slow to update their web site and all. Nine AM on Tuesday: merger complete.

Very nicely done, Mel.

I don't play the stock market. But, if going down is good. Then, sat. radio stock is doing amazing!


http://finance.google.com/finance?q=NASDAQ:SIRI

The cost cutting should (must) start immediately. There is no need for a studio in Washington and another in New York. Shut down the the Washington facility and move everything that can be moved to new company headquarters in NYC. All personnel services and accounting moved to NYC immediately. That's an easy one as nobody cares where their checks come from as long as it's good. Cut out all duplicate channels, i.e. weather, specialized music, etc. No doubt given the average wages in Washington that at $50K+ in salary per person it wouldn't take too many unneeded bodies to get into the millions of dollars in savings. We don't have to follow in the FCC's footsteps and take 15 months to figure this out.

"a viral "Save SatRad" campaign"

CRAPPOLA! Is satellite radio a charity now? Stop spamming the boards and extending Mel's "pump and dump".

Baron's was right. Cramer is useless!

So of course XM is no longer trading, when will the shares be converted over? Anyone know?

What did you (investors) think was going to happen?? a big payday when the merger was completed?? guess again.. this will be a long term investment win.. not a big win today.. Mel knows what he is doing.. is he a crook?? he seems like one but I don't own stock so I'm not feeling like my ass just got raped...

Paul in FL,

Think Mel said 15 years no?
Q: You say that you're still going to run XM and Sirius as separate brands. If so, where will the cost savings come from?

A: I think there are plenty of opportunities for synergies to occur, even though we will still, for the next 15 years, continue to operate a Sirius service and an XM service. …We both spend a whole bunch of money on customer care and the call center and there would be consolidation there. We spend a whole bunch of money on chip sets. There would be savings there. We spend a lot of money advertising and marketing. We have a whole bunch of areas for redundancy.

Paul in FL,

Think Mel said 15 years no?
Q: You say that you're still going to run XM and Sirius as separate brands. If so, where will the cost savings come from?

A: I think there are plenty of opportunities for synergies to occur, even though we will still, for the next 15 years, continue to operate a Sirius service and an XM service. …We both spend a whole bunch of money on customer care and the call center and there would be consolidation there. We spend a whole bunch of money on chip sets. There would be savings there. We spend a lot of money advertising and marketing. We have a whole bunch of areas for redundancy.

BYE BYE, XMSR!!!

Mel, You say this was a win for everyone, and yet the shareholders who for the most part have shouldered the burden for the last several years feel totally screwed by you. I am shareholder that owns 20,000 shares at $5, how am I a winner here? I have held the stock for 4 years and am down 70% on my money, and you sit around in your white ivory tower getting paid millions to allow your loyal shareholders to be totally wiped out.

I am also a subcriber, and right now based on principal I feel like cancelling my service and based on principal feel like filing a lawsuit against you and your failed managmenet team.

I suggest you start walking your talk, and buy $27 million more dollars worth of stock in the open market at $1.50 to show you are puttting the same skin in the game your shareholders are putting up.

Instead of just satisfying Wall Street greed mongers, show that you support the retail shareholders who took risk and supported you when Wall Street did not care about your company or your stock.

sirius xm radio? LOL

Laser focus? Someone has been watching Entourage on Demand. Johnny Drama is like a laser.

"WAKE THE (BEEEEP) UP. THIS IS A BUYING OPPORTUNITY OF A LIFETIME."

Think IPO! This is a new company with the 2nd largest subscription base in the country!

I have to agree. This is a great time to buy into a new company.

LONG SIRIUS XM!

Pump and dump? I think it more of a dump. Get your facts right.

If it laser focused, when is the 'ala-carte' package going to be offered ?
I want all the sport packages now. They knew it was comming, so all the would have to do is " flip-a-few-switches and push a few buttons " and everybody could get everything.

ha ha ha haa haa haaaa haaaaaahaaaaaa haaaaaaaaaaa haaaaaaaaaaaa!!!! Enjoy your stock boys!!! You got what you wanted!! Enjoy the taste!!

THIS WAS A FUCKIN CAR JACKING.....AS A SIRIUS STOCKHOLDER....WE ARE GOING TO LAUNCH A LAWSUIT AGAINST THIS RECKLESS CORPORATE JIHADIST.....THE SO CALLED LOAN WAS IN FACT A BRIBE....USED TO CARJACK SIRIUS SATTELITE STOCKHOLDERS AND RATHER THAN SQUEZZING THESE NAKED SHORT UBS SCUMBAGS WHAT DO THEY DO THEY OBLITERATE SHAREHOLDER VALUE.......THERE HAS NEVER BEEN A MORE SHAMEFULL CONSTRUCT IN US HISTORY.......IF YOU WOULD LIKE TO BE PART OF A LAWSUIT LET ME KNOW......PATRICK RODGERS

"THIS IS A BUYING OPPORTUNITY OF A LIFETIME."

If we were not facing the end of cheap energy and resource depletion... and the US economy was not bankrupt - you might be right... however as people struggle to fuel their vehicles, heat their homes and put food in the table I doubt many will be thinking satellite radio is a priority.

Once the DOW hits 6000 in the next 6 months, we will see what a buying opportunity satellite radio is today.

GS

Um, ORBITCAST SUCKS?

Blocking users by IP adresses if users sends multiple messages is AWESOME. Great way to shut AC down. However, please take it one more step, please!

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.

THANK YOU! but, please STOP "anonymous coward" posting.

PLEASE. 92% of your users want this to stop!

All's well until you start DILUTING SHARES. That was a bullshit maneuver.

They knew that they needed to raise money, and when Sirius issued more shares, which does not dilute the shares, it raises a whole bunch of cash and we think it's a negative thing? Now call me stupid.......

Posted by: - - - Cramer can suck it, He know nothing! - - - | July 29, 2008 9:03 AM


Apparently you are stupid. Issuing more shares not diluting the shares? Where did you go to business school again? Cramer seems more educated than that idiotic response.

Actually, AC is sorta right. Putting more shares on the "shelf" is not diluting them. Offering hundreds of millions of shares to a brokerage house at $1.50 (!) is. Once you take them off the shelf, it dilutes all shares. Simple math.

Hey Mel did you ever take a course in economics?

Here is a quick hint ... you first complete the deal ... wait a few days ... after your merger has caught hold with Wallstreet ... and your stock goes up a buck ... adding one point five billion to your market cap ... then you approach the Hedge funds with your stock plan ... and basically get it for free as your stock goes back to the merger price ...

Today IS a great day to buy ... premarket it was only $ 1.49 ... and now is up.

To the former XMSR holder's ... relax, your shares will appear in you brokerage accounts in two days. Probably THURSDAY ...Friday at the latest ... an you will probably dump them ... hense bringing down the share price to around $ 1.40 ... and in a month or after the end of the next quarter the SIRI shares will get back to the $ 2.00 plus area.

Since the FCC is going to mandate HD Radio in Satrad receviers, and make Satrad pay for it, the new name should be, "Sirius XM iBiquity Radio Inc"

Get ready for the worst radio on radio, thank God for i pods as the watered down music content will bore you to tears, and the subscription rates,oh yeah it will be cheap for a while until Mel realizes hey we need to make money here or were toast, so the subscription rate increases will come, then how much will you like the worst radio on radio, mark my words it is coming. A merger is NEVER good for the consumer. The days of good satellite radio are over.

THIS WAS A FUCKIN CAR JACKING.....AS A SIRIUS STOCKHOLDER....WE ARE GOING TO LAUNCH A LAWSUIT AGAINST THIS RECKLESS CORPORATE JIHADIST.....THE SO CALLED LOAN WAS IN FACT A BRIBE....USED TO CARJACK SIRIUS SATTELITE STOCKHOLDERS AND RATHER THAN SQUEZZING THESE NAKED SHORT UBS SCUMBAGS WHAT DO THEY DO THEY OBLITERATE SHAREHOLDER VALUE.......THERE HAS NEVER BEEN A MORE SHAMEFULL CONSTRUCT IN US HISTORY.......IF YOU WOULD LIKE TO BE PART OF A LAWSUIT LET ME KNOW......PATRICK RODGERS

Posted by: PATRICK RODGERS

LOL!! Hey.. Here's an idea. Maybe you can write another comment to the FCC and admit that all of those tens of thousand of fake aliases that you posted "public interest comments" under were really only posted by a handful of Mels "ALL MY BITCHES" crew.

Looks like Karma is now paying you a visit, as predicted.

Remember, when Karma comes a knockin' at the front door. Be sure to Welcome it in with open arms. Cause' if you make it set up camp in the back yard. It gets real angry.

And so it goes,
PCSTEL

Cramer says buy, and the stock flops over....then he says to stay away and it recovers....Everybody just do opposite what that man says and it will work out much better for you.

I still think they should have gone with SXMR as their ticker symbol.

ORBITCAST SUCKS, THEY DON'T EVEN POST MERGER NEWS ON TIME, HE WASN'T EVEN NEAR A COMPUTER WHEN THE MERGER HAPPENED. HOPE YOUR NOT A SHORT MOFO, U BROUGHT FALSE HOPE TO ALL THE READERS

ORBITCAST SUCKS, THEY DON'T EVEN POST MERGER NEWS ON TIME, HE WASN'T EVEN NEAR A COMPUTER WHEN THE MERGER HAPPENED. HOPE YOUR NOT A SHORT MOFO, U BROUGHT FALSE HOPE TO ALL THE READERS

ORBITCAST SUCKS, THEY DON'T EVEN POST MERGER NEWS ON TIME, HE WASN'T EVEN NEAR A COMPUTER WHEN THE MERGER HAPPENED. HOPE YOUR NOT A SHORT MOFO, U BROUGHT FALSE HOPE TO ALL THE READERS

Combined, Sirius XM Radio will deliver superior value to our shareholders.
DOWN 20%!
Combined, Sirius XM Radio will deliver superior value to our shareholders.
Down 20%
Combined, Sirius XM Radio will deliver superior value to our shareholders.

Thanks Mel, Gary, and the rest of the crew.

Suck it NAB! You lost, you suck, Sirius rules, so does Stern & Bubba and watch out testical radio, let the competition begin. Sirius bought out XM so O & A can go blow goats too.

18.5 Million? No way.
Most of them are dual-subscribers.

Try 11 million at best.

After the "a la carte" options come on-line the numbers will tell the truth.

Ugh. Terrible name. Wonder if they're going to change it further once the companies are truly merged...

One wonders what this USA merger will bring to the respective Canadian entities, XM Canada and Sirius Canada...

Uh I "suggest removal of THIS non topic comment(s)." Pocketradio your games are known, you proved you lost, you proved your a loser, you proved your fearful and desperate. Not two days ago you were spamming the threads and threatening Orbitbcast like the mental patient you are, all because you can't handle others opinions. You ego post and attack others, and you get back what you give. http://www.orbitcast.com/archives/its-official-fcc-approves-sirius-xm-with-3-2-vote.html#comment-764473 What would be "AWESOME" is you'd GROW UP and start worrying about yourself and not dwell on others opinions which have zero to do with you. There is more than enough problems with Pocketradio for you to deal with.

Pocketradio - TROLL
Pocketradio - DEBUNKED


Um, ORBITCAST SUCKS?
Blocking users by IP adresses if users sends multiple messages is AWESOME. Great way to shut AC down. However, please take it one more step, please!
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.
THANK YOU! but, please STOP "anonymous coward" posting.
PLEASE. 92% of your users want this to stop!
Posted by: Anonymous Coward | July 29, 2008 10:22 AM

"Paul in FL",

XM OWNS their studios in DC while Sirius LEASES their studios in NYC.

It would make more sense to move most everything to DC so there would be far less lease obligations.

Sirius XM Radio????????

How About S&M Radio, or X-Sirius?

What braindead SOB came up with Sirius XM Radio?

Oh yeah, it's because it isn't a merger, it's a frakin' acquisition!!!

"it isn't a merger, it's a frakin' acquisition!!!"?

What? I thought it was a "merger of equals"?

"Pocketradio your games are known, you proved you lost, you proved your a loser, you proved your fearful and desperate. Not two days ago you were spamming the threads and threatening Orbitbcast like the mental patient you are, all because you can't handle others opinions. You ego post and attack others, and you get back what you give."

I love this! Can I have some more, please?

Gary and Mel? Where is Nate?

"Sirius XM Radio Inc. will be the second largest radio company"
Who is number one?

"A combined 18.5 million subscribers, it is now the second largest subscription media business in the U.S."
Who is number one?

You had us till the BS started Mel.... "we look forward to integrating our best-in-class management teams and operations so we can begin delivering on our promise of more choices and lower prices for subscribers."
"best-in class management"? Is Mel losing it?

When was the last time these stocks had a good few days. Dont worry, i'll wait.

This company is a mess.

Sirius XM Radio

Hmmm, I suppose it's something. But I was hoping for something with more pizazz.

How about "MKradio", and the slogan can be "the best snake oil salesman on radio".

Really, lately, I'm liking David Rehr more than Melvin K.

I was hoping for a name like Buckakanawbe radio. WTF Sirius XM.

Dumb and boring on a great day.

"What? I thought it was a "merger of equals"?"

That's bullshit and everybody knows it. See the new company's stock symbol for proof.

I mean, isn't SIRI the one that's this close from being kicked off the exchange? XMSR at least has a little more value to it.

Anyone remember "G4TechTV"? That was a "merger" of G4 and TechTV... what's it called now? JUST G4!

History repeats...

What does Howard Stern think?

Nedly said...
"What does Howard Stern think?"

He talked about it on the show today and thought it was great. He said Mel will be on the show tomorrow to talk about it more.

It's the right name for the transition...my guess is when Sirius is done gutting XM, about three years, the "XM" will be dropped. XM is a much better name, IMO...AM..FM...XM...

KevinM,

Good idea: TechTV was the better of the two (XM) and was taken over by G4 which sucked, for a while some TechTV programming remained, then it was all dropped and now all thats left is G4 which has 0.0 ratings.
"History repeats..."

"Anyone remember "G4TechTV"? That was a "merger" of G4 and TechTV... what's it called now? JUST G4!
History repeats..."
Posted by: KevinM

This is truly laughable, stop using your emotions ppl (and i'm talking specifically to those cry babies that are moaning about their supposed loss) And of course Siri would have to continue to trade on the Stock exchange, that's because Siri used stock to acquire XM, you cannot use stock to acquire another company and stop trading on the exchange right? Of course not.

Now for all those that are super pissed at Mel, Mel doesn't have much control over the stock prices at this time. If my memory serves me correctly Siri got themselves in over their heads with debt, especially signing Howard Stern for 500 Million and then having to pay out a bonus check and additional stocks, which meant that the company had to revisit the contract with Stern. The Stern deal was in the works before Karmazin came to the company.

In comparison XM's share value was higher because their debt was lower and they were more conservative with their programming spend, (i.e. bring Oprah at 50 Million). SAC costs across the board for both companies were decreasing.

Looking at the business model for both companies, they will recover and i give them 3 years to become profitable. My hunch is that Karmazin will turn the company around w/in 4 years and sell around the 5th year.

As for cutting overhead etc, they will look at the trimming the fat first (meaning the execs etc) and then look at the worker bee level. Last time i checked NY was pressed for space and under lease, and XM actually owns their facility outright. It would make more economical sense to stay the course in DC due to the equity that the company already has there, that goes without saying. lets go with the facts.

Btw, Clear Channel is the largest Radio broadcasting company Siri XM is the second.

This is truly laughable, stop using your emotions ppl (and i'm talking specifically to those cry babies that are moaning about their supposed loss) And of course Siri would have to continue to trade on the Stock exchange, that's because Siri used stock to acquire XM, you cannot use stock to acquire another company and stop trading on the exchange right? Of course not.

Now for all those that are super pissed at Mel, Mel doesn't have much control over the stock prices at this time. If my memory serves me correctly Siri got themselves in over their heads with debt, especially signing Howard Stern for 500 Million and then having to pay out a bonus check and additional stocks, which meant that the company had to revisit the contract with Stern. The Stern deal was in the works before Karmazin came to the company.

In comparison XM's share value was higher because their debt was lower and they were more conservative with their programming spend, (i.e. bring Oprah at 50 Million). SAC costs across the board for both companies were decreasing.

Looking at the business model for both companies, they will recover and i give them 3 years to become profitable. My hunch is that Karmazin will turn the company around w/in 4 years and sell around the 5th year.

As for cutting overhead etc, they will look at the trimming the fat first (meaning the execs etc) and then look at the worker bee level. Last time i checked NY was pressed for space and under lease, and XM actually owns their facility outright. It would make more economical sense to stay the course in DC due to the equity that the company already has there, that goes without saying. lets go with the facts.

Btw, Clear Channel is the largest Radio broadcasting company Siri XM is the second.

Not on the Outside....bite me!!

Um, ORBITCAST SUCKS?

Blocking users by IP adresses if users sends multiple messages is AWESOME. Great way to shut AC down. However, please take it one more step, please!

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.

THANK YOU! but, please STOP "anonymous coward" posting.

PLEASE. 92% of your users want this to stop!

Posted by: Anonymous Coward

have you read your name?

Anyone remember "G4TechTV"? That was a "merger" of G4 and TechTV... what's it called now? JUST G4!

History repeats...

Posted by: KevinM

I agree, they probably will drop the xm out and keep it sirius. Which is stupid because xm is more attractive.

Why is pocketradio crap posting on every thread here at Orbitcast and blaming others yet again for his fear and desperation?

Pocketradio = TROLL
Pocketradio = DEBUNKED

Thanks to everyone who agrees, I honestly believe the "Sirius XM" moniker is not going to last long. This deal between the two companies was announced as a merger of equals, but to me it has looked like a buyout-- without the money. Mel's the CEO, SIRI is the symbol. Sirius becomes first in the name, and as time will most likely tell... this new company will be just Sirius. Mel's ego is too big.

Can you tell me howw to contact a senior manager of XM Radio to register a formal concern