Sirius:Merge Or Die.

Stalker2

Registered User
Joined
Jun 7, 2001
Messages
25,916
Likes
3
Points
468
Location
TRueWDTer
#1
http://blogs.moneycentral.msn.com/topstocks/archive/2007/12/04/sirius-merger-or-chapter-11.aspx

Sirius: Merger or Chapter 11

Posted Dec 04 2007, 11:39 PM by Bradley Meacham

This post was written by Douglas McIntyre of the blog 24/7 Wall Street:
Goldman Sachs hit Sirius and XM Satellite with serious downgrades today. It knocked down shares of both companies by 5%.
What analysts don't want to say is that the future of satellite radio in the U.S. could already be coming to an end. A merger between the two companies may be the only alternative they have to stay in business. Each company has well over a billion dollars in debt. Sirius had negative operating income last quarter of $106 million on $242 million in revenue. XM was in the red to the tune of $108 million on sales of $278 million. And XM shows only $275 million in cash on its balance sheet.
Sirius had 7.7 million subscribers at the end of last quarter and XM had 8.6 million, but those numbers no longer double year-over-year. That may be because other forms of entertainment have taken over in the car. When satellite radio was launched a decade ago the rear-seat entertainment device was not all the rage. The Apple iPod did not exist.
The market seems to forget that the shares of these two companies trade as if they were going out of business. In early 2000, Sirius traded close to $70. It is now lucky to see $3.50 on a good day.
Sirius and XM are lobbying the FCC to approve their merger on the basis that there is plenty of new digital competition and that a combined company would not be a monopoly. In the strictest sense, it is one, of course. The government licenses the rights to be in the business and, in a merger, there would be only one company with those rights
 

Vyce

Light-skinned, with no Negro dialect.
Joined
Feb 11, 2006
Messages
8,171
Likes
10
Points
496
Location
Washington D.C.
#2
This may be a minority opinion here, but......I'd rather XM fold in bankruptcy then merge with Sirius.

Not that I want that to happen. I just do NOT want Mel K or that other Howard Stern (the less known one who wasn't married to Anna Nicole) having ANY influence as to what content I receive.
 

blee

Will Drink Today
Joined
Dec 9, 2004
Messages
8,697
Likes
355
Points
651
Location
western ny
#3
Fuck Sirius. I bought my entire family member a XM unit for xmas.
 

weakside

He was stupid. I was lucky. I will visit him soon.
Joined
Dec 9, 2004
Messages
3,871
Likes
0
Points
0
Location
California
#4
Damn. I really love my satellite radio.
 

d0uche_n0zzle

**Negative_Creep**
Joined
Sep 15, 2004
Messages
46,649
Likes
6,848
Points
693
Location
F.U.B.A.R
#6
This may be a minority opinion here, but......I'd rather XM fold in bankruptcy then merge with Sirius.

Not that I want that to happen. I just do NOT want Mel K or that other Howard Stern (the less known one who wasn't married to Anna Nicole) having ANY influence as to what content I receive.
I concur.

Fuck Melvin and company. They ruin everything they touch, like a kiss of death.
 

Treat_Yourself

Registered User
Joined
Nov 17, 2006
Messages
548
Likes
0
Points
0
#7
I thought Stern was going to single handedly make sirius profitable. What happend to that?
 

Creasy Bear

gorgeousness and gorgeousity made flesh
Donator
Joined
Mar 10, 2006
Messages
48,029
Likes
35,868
Points
628
Location
In a porn tree
#8
This is what I see in my crystal balls...

If this merger goes through... oofah!... what a bloodletting there will be. Every swingin' dick at XM in D.C. can kiss their jobs goodbye. I predict a "consolidation" to Sirius's NY offices that will see only a handful of XM D.C. personnel making the "transition". For the rest of them it'll be, "Watch that door doesn't hit you on the ass." Melvie is going to do like Stalker Patty's mother and abandon nearly every XM D.C. employee at the nearest diner.

Here's my prediction for Hoo Hoo's future...

If the merger goes through... Hoo Hoo stays and takes credit for single-handedly gaining 9 million new subs for XMirius, and then embarks upon a ruthless gag order campaign against his new co-workers... for whose shows he will have dump buttons directly wired into his limo, Howiecopter, and his compound in the Hamptons.

If the merger tanks... Hoo Hoo retires when his contract is up and attributes Sirius's inevitable bankruptcy directly to his having left."If they had just given me another half a billion dollars, they'd still be in business and making a fortune! Hoo hoo... tell 'em, Fred."
 

d0uche_n0zzle

**Negative_Creep**
Joined
Sep 15, 2004
Messages
46,649
Likes
6,848
Points
693
Location
F.U.B.A.R
#9
Joe Clayton wrapped a boat anchor around SIRI/XM when he overpaid Howie and NASCAR. Thus then, forcing XM to overbid for MLB.
 

Jerry1

Megatron Star!
Joined
Jan 26, 2006
Messages
3,338
Likes
2
Points
228
Location
Brooklyn, New York
#11
Sirius: DIE.

How's that sound :)
Hear Hear!

Love to see Sirius go under for the simple fact that Stern goes under to and ends up crawling back to terrestrial for much less than a half a billion dollars.
 

MrAbovePar

En Taro Anthony
Joined
Mar 14, 2005
Messages
13,775
Likes
3,168
Points
678
Location
Covington. La
#12
You mean people stopped buying satellite radios when they found out that the companies would not allow the on-air talent the freedom to be creative and edgy? I'm shocked! I figured people would have gladly paid 15$ a month just to get exactly what they get from terrestial broadcasts only with wider coverage.

XM and Sirius had a niche. They decided to abandon it. Too bad.
 

Don the Radio Guy

G-Bb-A-D
Donator
Joined
Mar 30, 2006
Messages
69,628
Likes
5,081
Points
568
Location
Wyoming
#14
So you'd rather have the certainty of no O&A/R&F than a CHANCE of no O&A/R&F?

I'll take my chances with Mel. He may be Hoo Hoo's friend but money is more important than friends to Mel. O&A and R&F make money for XM. That's all that matters.
 

Stormrider666

Hell is home.
Joined
Mar 19, 2005
Messages
27,979
Likes
2,741
Points
673
Location
Bronx, NY
#15
So you'd rather have the certainty of no O&A/R&F than a CHANCE of no O&A/R&F?

I'll take my chances with Mel. He may be Hoo Hoo's friend but money is more important than friends to Mel. O&A and R&F make money for XM. That's all that matters.
QFT. Even though I still stand by my stance about the future of satellite radio, I think it has a better a chance of survival if the merger goes through.
 

Jambi

Infidel
Joined
Nov 29, 2006
Messages
3,452
Likes
374
Points
523
Location
FL
#16
A merger goes against everything we've been taught about economics since 8th grade. It can't get better without competition.
 

Don the Radio Guy

G-Bb-A-D
Donator
Joined
Mar 30, 2006
Messages
69,628
Likes
5,081
Points
568
Location
Wyoming
#17
A merger goes against everything we've been taught about economics since 8th grade. It can't get better without competition.
When that competition causes the companies to spend all of their money to compete and to launch obscenely expensive equipment into orbit, with a limited customer base; sure it can get better without competition.

Microsoft seems to be doing just fine.

It's not the ideal setup, but satellite radio will ALWAYS be a niche market. People in general are NOT going to pay for radio when they listen for 10-15 minutes a day on average.
 

Jambi

Infidel
Joined
Nov 29, 2006
Messages
3,452
Likes
374
Points
523
Location
FL
#18
When that competition causes the companies to spend all of their money to compete and to launch obscenely expensive equipment into orbit, with a limited customer base; sure it can get better without competition.

Microsoft seems to be doing just fine.

It's not the ideal setup, but satellite radio will ALWAYS be a niche market. People in general are NOT going to pay for radio when they listen for 10-15 minutes a day on average.
Microsoft has competition, albeit weak. Competition did not cause Sirius to pay Howard $500 million, that was just stupidity.
 

Jerry1

Megatron Star!
Joined
Jan 26, 2006
Messages
3,338
Likes
2
Points
228
Location
Brooklyn, New York
#19
A merger goes against everything we've been taught about economics since 8th grade. It can't get better without competition.
Look what happened to the WWE.

Things get better with healthy competition. You make the better product or service so you can sell it more instead of the other guy. If there is no competition then quality stagnates because there is no need to improve and the consumer is held to the whims of the company.

I don't trust Mel. He put the ole "Gag Order" on the boys back in their NEW days because of pressure from Howie. Now that Howie seems to have a big say in Sirius(500 mill worth) its almost a certainty that history will repeat itself.
I know one thing..if the the merger goes through then say good bye to the terrestrial side because Mel ain't big on sharing talent. Like Opie said....4 more months...

I'll take my chances with Mel. He may be Hoo Hoo's friend but money is more important than friends to Mel. O&A and R&F make money for XM. That's all that matters.
O&A were making money for the company back in the NEW days too when Mel slapped the "Gag Order" on them.
History will teach us nothing....
 

Don the Radio Guy

G-Bb-A-D
Donator
Joined
Mar 30, 2006
Messages
69,628
Likes
5,081
Points
568
Location
Wyoming
#20
O&A with a gag order is better than no O&A at all.

We have to be realistic here. Mel won't fire the boys, he may put limitations on their speech, but that's happening now. We have to make the best of a situation and hope that someday HD Radio will have adult rated channels, and Farid gives the boys a home there. He's the only one of the big media bosses that gets it.
 

Jerry1

Megatron Star!
Joined
Jan 26, 2006
Messages
3,338
Likes
2
Points
228
Location
Brooklyn, New York
#21
O&A with a gag order is better than no O&A at all.

We have to be realistic here. Mel won't fire the boys, he may put limitations on their speech, but that's happening now. We have to make the best of a situation and hope that someday HD Radio will have adult rated channels, and Farid gives the boys a home there. He's the only one of the big media bosses that gets it.
And we thought XM censoring the boys was bad. At least I can still remember the days when the boys made fun of XM and the other channels. Well, after the merger they won't be able to mention one channel.
So much for "Uncensored" radio...except for Howie's station cause he can talk about whatever he wants....including attacking the boys!

Something tells me that CBS kinda knows the XM/Sirius mergered company is gonna pull O&A from them when the contract runs out. That's maybe why some cities have dumped the boys already and here in NYC they went to music after the boys because they will be ready to go all music for when it happens.
So if you listen to the boys primarily through terrestrial...no O&A at all.
 
Top Bottom