Sirius, XM Merger to be announced today?

Monday, February 19, 2007 at 9:01 AM
Tags: 2, XM

XM and Sirius Merger 

Sirius Satellite Radio and XM Satellite Radio are expected to announce their planned merger today according to the New York Post.

While we've been down this path before - albeit the source of the rumor is only slightly more reputable (theflyonthewall vs the New York Post), there also seems to be a lot more details this time.

According to the Post, the transaction is expected to be structured as a merger of equals, but given Sirius' higher enterprise value, shareholders in the Mel Karmazin-led firm will likely come away with a larger percentage of a combined company. This goes against Bear Stearns' belief that that the split of the merged company would go 55% in XM's favor.

Also, the NY Post says that XM Chairman Gary Parsons will retain that title in the combined entity, with Karmazin likely taking the CEO role. It is unclear what role, if any, XM CEO Hugh Panero will play. 

[New York Post]
Thanks Karl!

TrackBack/Ping:

Comments

What a disaster this would be. If true, I'll be calling XM to cancel today, since I don't want to be around for:

-"synergy" killing my favorite channels
-price increases
-interoperability problems
-more banwith squeezing


I'm trying to wait and see what is going to come of this but it looks like it's going to happen. I'm hoping against hope that we the consumers are going to get some nice incentives and will benefit from the merger but I can't help but be negative about the whole thing. Well we have no say and I will support Satrad till the end. I just hope this possible merger is not a complete mess.....I just hope.

This is bad news... Great news for shareholders, BAD news for subscribers. I understand it's probably the only way satellite radio can survive, but less competition will absolutely mean less quality. PLus, I would imagine that alot of people's favorite channels/personalities will be axed.

"What a disaster this would be. If true, I'll be calling XM to cancel today, since I don't want to be around for:

-"synergy" killing my favorite channels
-price increases
-interoperability problems
-more banwith squeezing"

That's funny becuase I have Sirius and I'm thinking the same thing. I've listened to their music and I can't get into it. It sucks so bad becuase Sirius just added a really good alt rock station (which was a plus for XM until I heard it). The only thing that probably won't be effeccted is Howard, which is the main thing I listen to. As someone else said, good for stockholders, awful for subscribers. As long as people are making money, product be damned!

It's great news and long overdue. I called this Q1 - 2005 while (3) fan clubs rallied in angst at the thought.

Motley Fool called XM a buy at 30 and dropped it at 10. A foolish service.

Jacoby/Tuna trashed the very thought.
Peck was always right on the mark.

" but less competition will absolutely mean less quality" Posted by BleedingGreenNation

So true, in every business I can think of, less competition always screwed the consumer.

I'm still waiting for even more legit proof that they're announcing the merger. I'm sorry, but it's going to take a lot more than a news article to convince me this is actually going to happen.

i agree realwx--The Post isnt the most reliable--Great reading but more rumors---Plus, lets just say this is true--The odds of approval from the fcc IS LOW-You think the RIAA etc. will come out in favor?? lol

Why would the companies make an announcement of this caliber on a day when the markets are closed?

I'd certainly be disappointed if they merged. I'd probably even file a response during the FCC comment period. I don't feel these companies have exhausted every possibility to generate positive revenue, specifically raising prices, etc.

I would feel the same way if Comcast and Time Warner merged (the two largest Cable Cos in the US) and I appreciate the feelings people had/have about SBC+Bellsouth -> AT&T and ATTWS+Cingular -> Cingular -> AT&T too. Ultimately in these situations, the consumer getting screwed is more likely than not. The ATTWS+Cingular situation is still resonating in some ways.

Time Warner acquiring the Adelphia markets here and now holding a majority stake (70+%) of the state's cable assets has definitely not been in favor of the consumer. The promise of no rate hike initially turned into a rate hike and channels being dropped (ESPNU, for instance) 2 months after the finalizing.

When it comes to media company mergers, you do actually have a choice: cut them all off. Don't subscribe to cable TV. Don't subscribe to satellite radio. They'll feel it real quick when their revenue dries up.

When it comes to cell phone mergers, you really don't have a choice. With their ridiculous contracts, it's hard to leave if they screw you.


I'm still waiting for even more legit proof that they're announcing the merger. I'm sorry, but it's going to take a lot more than a news article to convince me this is actually going to happen.

Posted by realwx

Good point, I just have a gut feeling that this merger might go down. So far I did see a quick blurb about it on TV but no other newspapers have picked this up yet.

This is just one more reason to become active in the fight against this merger from the consumer side of things.

Companies led by Mel Karmazin have made more than 20 major acquisitions worth a combined $80 billion. It looks like a merger with XM could be next for Mel.

Which means all of us are about to be hurt... Join the Coalition for Competition in Satellite Radio at www.c3sr.org

First off, The NY Post is a Murdock shit rag. Take everything they say with a grain of salt. I don't even trust them to report yesterday's weather truthfully.

That being said, if it's true, I'm selling my Sirius stock I got at $3.72 after the inevitable rise to whatever price it reaches and using the profits to buy a hot tub!! Woo Hoo!!

So I think it's a wonderful thing!

And Mel will whip that company into shape in no time!

Sirius and XM - Say it with me Brothers and Sisters!!! WE LOVE HOWARD STERN!!! WE LOVE HOWARD STERN!!! WOOOOOHOOOOOO!!!!

Stern is bankrupting Sirius. I wonder why Sirius wants to merge.

I would love to call Bravo Sierra on this one. Hopefully, it's just one more attempt by the King of all Eyebrows to pump up his stock. Sirius is in the toilet and he's trying to do anything he can to bring it out.

"Sirius and XM - Say it with me Brothers and Sisters!!! WE LOVE HOWARD STERN!!! WE LOVE HOWARD STERN!!! WOOOOOHOOOOOO!!!!"

Isn't he off again this week? I love vacations! I love vacations!

Ugh, even if I get Howard on my XM I still will not be tuning to it. Maybe they should just consolidate Howie onto one channel, since he is rarely on, and let Bubba and Farrell run there as well. The dual O&A / R&F seems to work pretty good on 202.

Here is a question though. Do you think that we will see more crossing over and "love" between the shows? I think that Breur will be back up with O&A, as he used to be quite regular before he got his own show. So I could see that happening real quick. But what about Howard and O&A? I dunno how that would work out. I wouldn't mind the choice of morning talk shows, but I don't think they are going to be friends anytime soon and I sure hope nobody in talk gets bumped off either!

This merger saddens me. Not only do I HATE Stern,but I do not like Sirius's lay out and music (Had it for 6 months).

I bet it falls apart. See what I hate the most is Mel is about the money, period, not the programming. e would shut the whole thing down and leave all subscribers with $100 paper weights (REALLY BIG ones for the Sirius people) and go home rich.

All Sirius and Stern fan-boys beware. Mel will sell us ALL out in a heartbeat for some cash.

Stern is bankrupting Sirius?

You're an idiot.

I'm just not thrilled at the prospect of having to upgrade all my hardware...

One Inno, one SkyFi, one brand-new Honda Civic with XM pre-installed.

What gives?

if nothing occurs today (not sure why it would on a federal holiday...and in DC?), will this finally generate the "boy who cries wolf" result?

I, personally, would love to have 80-100 commercial free music channels (the best from each co) and the combined sports and talk of the 2 companies available for one price (maybe they create packages to offer all original XM, all original SR, and a combination of both to appease early adopters), but this just seems like another chapter in the rumor mill saga.

ALL 13.6 Million Sirius and XM subs LOVE HOWARD STERN NOW!!! :)

Remember when AOL was at 20 million subs and growing fast! They had 0 Content! This new media company will have Content coming out of its ears- Howard, NFL, MLB, Nascar, Oprah etc. 20 million subs in 2008 and growing fast. Congrats Sirius and XM. MY Brothers and Sisters, all together now!!!- WE LOVE HOWARD STERN!

I know this is a small detail in the grand scheme of things, but if the merger does happen, with Stern having the bigger name recognition, would O&A go strictly to terrestrial radio?

Let the real war between O & A, and Stern begin. If they were working for the same company and they could both say whatever they wanted, it could make for some very interesting radio.

ABC News website just confirmed Mel's going to run the company. HOW SWEET IT IS!

would be cool and even fun to hear OandA and Howard having prank wars under teh same roof. Maybe alot of people will change there perspective on either personality after listening to both. IF anything they will be fighting to keep their show top notched. Which means im sure both shows will probably be funnier than ever before.

What you think this will do for stock prices?

MUSCLE13 and realwx: you are both idiots.

The 'confirmed' story links to http://newspreview.corp.dig.com/Business/wireStory?id=2887000
newspreview.corp.dig.com doesn't exist, it's an internal link. The ID (2887000) of the story is correct though, and you can see it at http://abcnews.go.com/Business/wireStory?id=2887000

Hey, that just happens to be the exact same page you're talking about. ABC News' confirmation is the fact the NY Post ran a story saying it's so. Yeah, let's all trust a paper whose claim to fame is Page 6.

well i listen to sirius and listen to it a lot, especially maxim radio (ch. 108 - the best shows) well the only thing that i wonder is how would these channels come out if they merged? would we get xm stations and the similiar music stations just go into one? i have a feeling a lot of people could be losing jobs over this. ther other thing is the price. that really has no need to go up, i play enough as it is for sirius monthly. if the costs go up monthly i'll just go back to terrestrial radio (or testical radio as stern says) i really want the big 10 conference college games and mlb that xm has. that would definetly be a plus

Post a comment

(or continue the conversation in the Orbitcast Forums)


Recent Entries

From the Forums...
Search Orbitcast:

Recent Readers
Latest Poll
Technology & Media Blogs
These are blogs that relate to technology, media or other specific industries, but not soley on satrad.
Sponsored Links





Copyright © 2008 Orbitcast Media, LLC.