XM-Sirius Merger Plans to be Announced Today?
Tags: 2, XM
According to theflyonthewall.com, XM and Sirius are expected to make an announcement at the North American International Auto Show in Detroit - today 01/11/2007.
Bank of America analyst Jonathan Jacoby met with XM Management at CES earlier this week, and it is his view that XM is considering the merger option quite seriously. Citigroup analyst Eileen Furukawa after an investor dinner with Gary Parsons also noted a she "sensed an increased openness from XM re: the possibility of merger with Sirius."
Now mind you, there's a big difference between these two companies wanting a merger, and whether it will really happen (see my 5 reasons why it won't happen post). There's many hurdles along the way, especially the "balance of power" between the two companies in this newly formed entity, but this is a clear shift in XM's previous position on the merger itself.
From an investor's standpoint: Bear Stearn analyst Robert Peck said it perfectly in a recent note, "the possibility of a merger has likely been the single most important factor impacting valuations recently."
From a customer's standpoint: is this really the best thing? Who knows, but at this point it's way to early to even consider the implications of a merger actually going through.