XM-Sirius Merger Plans to be Announced Today?

Thursday, January 11, 2007 at 7:35 AM
Tags: 2, XM

XM-Sirius MergerAccording 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.

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no wonder XM is stock peaking, seems they are going to be the target of the takeover vs an actual merger. based on valuations siris would control 62%+ of the merged company, so even if they merge it will most likley be MEL/Siri leading the charge.


P.S. Hey did you see the NY ratings book.. OUCH.

LOL.. ROTFLMAO.... This is nothing more than sirius stirring the Merger pot in an attempt to get soemone with deep pockets to buy them. Its BS.

As For Pness, I wish you would do your homework.

If this crap happens you can bet your ass I'll be canceling my subscription (XM). I don't want Sirius's shitty lineup screwing my service up.

"As For Pness, I wish you would do your homework."

i wish for the days of homework again.


i hope you are not saying that i am wrong? want links? ratings are very easy to find on google news if you want to look at them, they are bad.

If this were to happen, and if the FCC approves, the transition will be a long one. There are some advantages: double the bandwidth -- reduce the redundant channels and SQ goes WAY up. Of course, some stations on one service will get axed for similar stations on the other -- not everyone will be happy. However, the companies would need to look at the bigger picture for the survival of this medium.

Less important is the resulting company name -- I still think XM is a much better name than Sirius (which most people still have trouble pronouncing).

Interesting times ahead -- if it does happen, this will be the event that either makes or breaks satellite radio.


Talk of a merger was brushed off by alot of us awhile back but this story always seems to gain a new life. While I agree with Ryan that this merger won't happen, I can't help but be concerned everytime this topic gains momentum. Will it happen or won't it? Will subs drop or rise up? Who knows, alot of us will watch closely but in my humble opinion, I don't see a possible merger as a positive for any satellite radio sub. It just not a good thing in any way for us lovers of sat. radio...I guess well will have to wait.

From a consumer standpoint this will suck. Competition is good for consumers. Monopolies only benefit monopolists.

As a Sirius stockholder, I'm thrilled. There are dollars dancing in my head. Money Money Money.

I'm sure in any merger, Mel will come out running the show. Investors simply have more confidence in him than any other exec from either company.

"P.S. Hey did you see the NY ratings book.. OUCH."

Heh. Yeah. I can't wait to hear how they're going to spin this. The 30 or so "pests" out there will believe any bullshit those frauds spew, anyway.

Who'd of thunk giving away something for free wouldn't spur sales???? It's just comical...

:)

Hey Jeff, this isn't just Sirius anymore. Parsons said the other day that he saw the benefits of merger. Further, Bank of America and Citigroup, both on XM's bandwagon, have said after meeting with XM, they feel its likely.

By the way, O&A's rating are now the same as David Lee Roth's. I believe that is what PNess was talking about. They really tanked.

Can people please stop with the Howard Stern Opie & Anthony stuff. WHO CARES!

By the way, O&A's rating are now the same as David Lee Roth's.
====================================================
I doubt they are as bad a DLR. but that aside, I am not a Pest, They make me laugh sometimes but others I just want to hear music.

As for Parsons, He was asked about it, He did not mention it over and over and over again. Besides. If both companys are CFBE that means they are making money short of making a profit (depreciation among others) There is not no reason for either company to merge with the other.

As for XM, they just refinanced all their debt and issued all the shares tied up in warrents as part of the unsecured debt. How do you think the people who refinanced them would feel taking on the Debt at Sirius that still secured and tied to a good 400 million more shares? This is where Pness has not done his homework.

i too, would rather cancel than have to listen to the generic programming of sirius. this is sad news.

XM is hurting badly so no wonder they're talking about a merger.

"Opie and Anthony dropped from 3.1% of 25-54s to 2.4% and among 18-34s, they fell 4.1% to 3.1%."

What's their excuse for going down in the ratings? Oh yeah, they just ignore it!

http://www.nydailynews.com/entertainment/story/487187p-410201c.html

"As for XM, they just refinanced all their debt and issued all the shares tied up in warrents as part of the unsecured debt. How do you think the people who refinanced them would feel taking on the Debt at Sirius that still secured and tied to a good 400 million more shares? This is where Pness has not done his homework. "

If they feel a combined company will have a better chance of giving them a full return on their debt more so then the thoughts of bankrupcy.

A combined company would also allow them to get more leverage on their debt and even work out a more favoriable deal in order for acceptance.

there is alot of "if's" but would the benfit of the merger make people who's money is in play worth more...yes

I have written at XM411 how silly this idea is. There will be no merger. If these is, it has no economic value. It's a bad idea. There are no savings.

XM has things in place to make a hostile take-over near impossible. It has to do with preferred shares. You will not see a hostile takeover.

Why would they make an announcement about a merger at an auto show?

Doesn't make sense.

Now if they wanted to make an announcement about an inter-operable radio for cars, that would make perfect sense.

Notice...YOUR attention please:

To all those who consistently suggest that they will drop their service if " X " happens, please take note.

You are insignificant. I don't care. We don't care, and most importantly of all, management at Siri and XMSR could give a shit less.

Why in the world would you waste valuable keystrokes threatening an absence that would make Orbitcast a better place ?

Save the iota of knowledge you have for deciding your favorite Slurpy favor.

Yeah Pockpie, you're just a vast wealth of knowledge. XM's in great financial shape, no need for a merger. Sirius on the other hand is drowning in debt. Spin it however you want. And if you think there will be only one or two people giving up on the service you're crazy. I just cancelled Sirius after a year of listening to Howard. Should they buy XM I'd be done w/satellite radio and so would a lot of people. Same as if XM takes over Sirius, you'd be gone along with your Howard freaks. The cost savings of a merger are minimal but the disruption to the current subs could cripple the whole industry. You may not care or think anyone cares but this is a very significant issue and many people do indeed care.

Here it is after 5:00pm, and nothing.

Looks like the good 'ol merger rumor is on hold for awhile longer. *rolls eyes*

Good luck getting past those two big guns up ahead. You know those guns, the FCC and the NAB?

Can we quash the rumor yet?

HOO HOO, I Invented hype, Mel ripped me off

As I type this I'm listening to XM channel 77. Its all I listen to. I have not changed the channel or powered off my XM receiver in the last six months. Its automatic 24/7 nonstop joy. No mouthy DJs, no ads, no hassle, no computer mess to bother with. Just really good music. I love XM. Sirius, Just Go Away. Don't come back. Don't mess with my XM, either.

Mike Hunt said:

"From a consumer standpoint this will suck. Competition is good for consumers. Monopolies only benefit monopolists."

Truer words were never spoken, Mike. One of the BIGGEST reasons companies merge is to CREATE a monopoly (or the better part of one). The Law of Supply and Demand works, pure and simple: a decrease in supply (or number of suppliers) will inevitably result in an INCREASE in price (assuming the demand stays constant or increases).

In the event of a merger, half your channels will go out the window, followed by half the employees of XM and Sirius AND the subscription price WILL go up. If you're a subscriber, what's to cheer for here?

Yeah Pockpie, you're just a vast wealth of knowledge. XM's in great financial shape, no need for a merger. Sirius on the other hand is drowning in debt. Spin it however you want. And if you think there will be only one or two people giving up on the service you're crazy. I just cancelled Sirius after a year of listening to Howard. Should they buy XM I'd be done w/satellite radio and so would a lot of people. Same as if XM takes over Sirius, you'd be gone along with your Howard freaks. The cost savings of a merger are minimal but the disruption to the current subs could cripple the whole industry. You may not care or think anyone cares but this is a very significant issue and many people do indeed care.

----------------

PFreak,

Like I says there PFreak. Go blow yourself up and save the Satellite gene pool. Cancel. No one Cares. Life is cruel.

You are dismissed now. Goodbye.

Pockpie

-------

Ryan...I'm really, really, really, going to cancel Sirius if PFreak posts one more post.

Did I miss anything?

Anonymous Coward- how is sirius drowning in debt and xm is in great financial shape? Because they refinanced? Give me a better reason or just hold your opinion until the real financial's are released in feb.

And come on don't say that if xm bought sirius us howard fans would be gone. It is clearly an economic decision not a fan of one dj over the other decision. And clearly if xm would by sirius howard would still have a job.

Here's one more ass, now go cancel. Sorry if you're grouchy because everytime you kiss your mom you smell my cock on her breath.

O&A PARTY ROCK!
i invented everything Robin, hoo hoo. Tell em Fred!

i hope Sirius goes the way of Robert "Chicken Broth" Reed

Jorge,

Those O&A ratings are only in NY. 1 market. Yes, the biggest, but it's only in 1 market. What are they doing in the other markets that they are in?

What are they doing in XMs station rankings?

I'm not saying that they are doing great, or they are doing poorly. I am simply saying that you can't generilze them based on 1 fall in 1 market when they are in several markets, and also nationwide via XM. It doesn't give the full picture.

Ok, so let's take a look at their Chicago numbers, shall we no1.

"Meanwhile, “Free FM” WCKG-FM, also owned by CBS, continues to languish after the December 2005 departure of Howard Stern. Arbitron ranked the station 30th in the marketplace, with a 0.9% share. The morning team of Gregg “Opie” Hughes and Anthony Cumia also ranked 30th among men 25 to 54, while Mr. Stern’s show had ranked second among this group on WCKG in fall 2005."

http://chicagobusiness.com/cgi-bin/news.pl?rssFeed=news&id=23444

Yeah, they're doing great alright! So do you believe they're lies about being the most popular show on XM? 6 months ago they were just in the top ten, and two years ago they had 35,000 listeners. Just don't believe they're lies like I don't believe Howard's lies of claiming "60% of Sirius subscribers listen to him."

Jorge,
your second example (Chicago) is a city that o&a openly said they have crap ratings in . i'm an occasional listner of their show and i know this . kinda makes your post sound shady .

If this does go down you know Mel is just going to put the old screw job on O&A like back in the old days. This sucks.

ah like Stern does lie about ratings and subs? Stern somehow thinks that every sirius sub is because of him? like every Soccer mom buying a new car gets a Sirius accnt to listen to Stern?

I used to listen to him, I used to really like him but well before his CBS departure he jumped the Shark!

Wow, you people really don't know what you are talking about do you? XM in better shape because they restructured their debts? XM has far more money invested then does sirius and they have been missing subscriber targets again and again. They are giving away their subscriptions. I got my subscription to them for $6 a month because I also have Sirius and I really didn't care if I dropped XM. The only reason I keep XM is to occasionally listen to OandA and they are not as fun to listen too now that most of the broadcast is censored for radio. Too bad that a talent like Jimmy Norton has his nuts clipped most of the time. I also listen to Stern who is funny too, but not as funny as he used to be. He relies on his staff far more than he used to, but his show is well produced.

At any rate, IMO, the music programming is FAR superior as Sirius than to XM. XM's music channels are very unfocused and eclectic. That can be good, but the point of having so many stations is that you should be able to get a channel of exactly what you want and XM is not good at that, at least when it comes to metal and Hard rock. The only good station that XM has for that is Liquid Metal which they were smart enough to take offline and put on the radio.

I really hope that XM's music stations are replaced by Sirius'. Sirius' music is better and their DJ's are far better. Most people believe that too because Sirius in store sales beat XM by at least 2 to 1, and probably 4 to 1 by young people.

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