XM, Sirius merger approval is far from certain
Wednesday, February 21, 2007 at 10:42 AM
Tags: 2, XM
The growing feeling on the probability of an XM and Sirius merger actually making it through the regulatory gauntlet appears to be less than originally expected.
Bank of America analyst Jonathan Jacoby highlights in a recent research note that while Management seemed confident that the deal would get approval, they didn't seem overly confident. "Words and actions make it appear to us that the managements believe the probability of getting the necessary approvals is good (say 55-60%), but far from certain," Jacoby wrote in the note.
Indeed, Bank of America believes that the probability of success is something less than 50%. And Wachovia Securities even believes that there is a 25% chance or less of obtaining regulatory approval with the deal in its current form and a 50% chance or less in any form.
Digg It!
Featured Entries
From the Forums...
Search Orbitcast:
Latest Poll
Satellite Radio Websites
Sponsored Links
Comments
Good, I really wasn't looking forward to having to pay extra for Howard Stern. $14.95 is high enough, taking on ala carte programming on top of that monthly fee would send me running back to regular, free radio.
Posted by: Aaron | February 21, 2007 11:35 AM
To me, I see the first sign of cracking within the satellite radio space. In addition to the billions of dollars spent on building and maintaining the network, the cost of acquired content is simply exorbitant. Generation Y is simply not interested in what is happening on either terrestrial radio or satellite radio. We see a revolution taking place in radio. We see thousands of citizen broadcasters for the first time being able to communicate their message to a live streaming, global audience. We see these tens of thousands of broadcast being archived as podcasts. The barriers are beginning to crumble and Blogtalkradio is at the forefront of this movement.
We see a revolution taking place in radio.
We see thousands of citizen broadcasters for the first time being able to communicate their message to a live streaming, global audience. We see these tens of thousands of broadcast being archived as podcasts. The barriers are beginning to crumble and Blogtalkradio is at the forefront of this movement.
Posted by: Alan Levy | February 21, 2007 1:09 PM
Um, what?
Posted by: Pete ? | February 21, 2007 1:36 PM
i think this is the first time
i have agreed with what pete has
said.
um what.
just because there are citizen broadcasters
doesn't mean they are entertaining or
for that matter any good.
if i need a good nights sleep , i will
listen to a podcast.
Posted by: sternfan73 ? | February 21, 2007 2:01 PM
not to be confused with reading
the great orbitcast.
with anything you go into you have to
think that there could be a chance of
failure.i could see where they didn't sound
overly confident.they have a big hurdle.
Posted by: sternfan73 ? | February 21, 2007 2:06 PM
No one addressed the ala carte feature during yesterday's conference call. How much more than $14.95 per month will it cost me to get all the programming I currently enjoy? They said that they didn't want to raise prices because 90% of consumers are still choosing free radio.
But I really like Howard Stern; how much will it cost me to continue getting Stern 100 and Stern 101 on an ala carte basis? How much will ESPN Radio cost on an ala carte basis? I would like a line by line itemized description of each program and how much it will cost. Where can I get the specifics of the ala carte pricing schedule?
Posted by: Aaron | February 21, 2007 3:42 PM
If this gets approved we will probally find out next year that some congressmen had their reelection fund filled by sirius/xm.
Posted by: BigHead | February 21, 2007 4:30 PM
I thought Jokeaby was in jail.
Posted by: Rich ? | February 21, 2007 8:59 PM
Hopefully this this gets shot down sooner then later because there is no way it is getting aproved.
Posted by: Anonymous Coward | February 21, 2007 10:02 PM
And mister Jacoby is the same fella that said buy XM at 44,40,38,35,31,25,20,etc.....
I dont think he should be quoted
Posted by: XM_USER | February 22, 2007 6:38 PM