XM/CBS take-over Rumor
Tags: 2, XM
According to theflyonthewall:
09:59 EDT XMSR theflyonthewall.com: XM Satellite Radio-XMSR trading higher on take-over speculation-Rumor :theflyonthewall.com
09:57 XMSR XM Satellite: rumor of CBS for XMSR; price talk said to be $27 (21.92 +0.12)
More on this as news develops.
Note: this should be considered a rumor until we find out more.
UPDATE: This from Briefing.com:
Hearing CBS-for-XMSR chatter making rounds
UPDATE 2: More from Briefing.com:
BRF 10:33 XMSR: XM Satellite: Color on takeover chatter [UPDATE]
[Live In Play]
XMSR: XM Satellite: Color on takeover chatter (22.20 +0.40)
Following takeover rumors in XMSR today (with CBS cited as a potential buyer... see 9:58 comment), we listened to yesterday's CBS conference call for any possible insight. During the call, CBS was asked directly about Univision (UVN), and their response was "I think Univision is a great company but there are two major issues for us. One is valuation and the other is regulation... other than that it is a wonderful asset." Co stated that they did not think they could clear the first hurdle... Approx 5 minutes later co was asked what they would do with their free cash. Co stated that they want to pay dividend; thinks that it is a higher threshold of confidence and best use of cash; says they would like to keep increasing the dividend. Co also stated that they are not interested in a large acquisition -- say in the $12-13 bln range -- but could be interested in a smaller acquisition in the $300 mln range (i.e. College Sports TV) that would be fairly valued and would fill a void for the co. Says acquisition has to be attractive and be able to grow... Briefing.com
Note: Given yesterday's comments by CBS, with a market cap of approx $5 bln it would not appear that XMSR would fall into the acquisition profile that CBS is interested in.
UPDATE 3: Gary Parsons at the BofA MET Conference stated that he "certainly" wouldn't comment on this rumor.