Discussion in 'General Discussion Archive' started by TheSqueakyWheel, Nov 11, 2007.
Interesting article about the merger.
Read all about it
Your link was to some guys bloq - HERE is the article
Fuck the Washington Post, mentioning Howie and then using Bob fucking Dylan as the example of XM's programming.
It's sad that Washington's only respectable newspaper is run by Moonies.
I just got an email from Sirius asking me to sign a petition in vavor of the merger. I signed no.
from my email from Sirius
Mergers always result in:
--ultimately, higher cost to the consumer
All bad things for us, the buyer.
Sirius initiated this merger because it will have a hard time surviving in the end, in its current form. The $$ paid for marginally interesting programming is killing it. (Late last week, Mel said that he would sue the government if the merger was not approved--I ask you, is this a comment from a man who isn't desperate?) Also, let's not forget that Mel K. is the guy who destroyed the commercial radio industry, with over saturation of commercials and lack of variety & originality in content. I think he will do the same thing with satellite, looking to squeeze out commercial $$, somehow. In addition, there is little doubt that the merger will be the death knell for ONA and R&F; given Mel's allegiance to Hoo Hoo and the $$ commitment he has made to him. It will probably take some time, but it will happen, absolutely.
As it appears that the merger will go through, even though the DOJ underlings have been negative, according to reports. I guess I'll have to make sure my iPod batteries are charged.
To say nothing of the fact that Mel will take the new company, whore it out for commercials across the platform and we all know, kick the boys off.
It is Howie's network, plain and simple.
Also, others are right, there is never an example of a single source of service that made for better prices, better service, etc. Competition (Real, against each toehr) results in trying harder... EVery since the merge was announced, you have to admit XM does not try hard any more. Now imagine it going through!
Both companies will have a hard time surviving without it. Sirius is not in great shape, but looking at the current financials its trends look a hell of a lot better than XM's. Sirius lost 120 million over the last three months while they lost 162 million durning the same 3 months last year. That's not good, but at least it shows improvement. Contrast that with XM, which lost 145 million over the last 3 month while it only lost 85 million during the same 3 months last year. That's awful, and with numbers like that XM's stock price would collapse if the merger fails. Perhaps just as important is looking at costs involved with getting new subscribers. Sirius at one time had almost double XM's cost per new subscriber, now Sirius is ahead of XM as Sirius' cost per new subscriber has continued to fall while XM's has been increasing.
In short, a case can be made that XM is in a much worse financial position than Sirius. Financially, the outlook has been getting better at Sirius while at XM it is getting gloomier. Say what you want about Mel. the fact is that he has a proven repution on Wall Street. If Mel and Hugh come knocking on your door asking for money, I think you'd be more likely to give it to Mel if you ever wanted to see it again.
But, even if the merger fails and both companies go bankrupt the show will go on.
It's the shareholders that will lose out. And while I thank them for their financial contribution, they can go screw. I made my investments in sounder companies that consistently turn a profit. Buying either of these stocks was a speculative move at best. Quite frankly neither of them are even worth a look for a day trade.
Someone will step in and buy both companies. I could see Google or Apple picking up one or the other.
The sats are up there, the infrastructure is in place, and the subs are there. The stockholders will get hosed, but the service will remain.
As a sub, that's all I care about. I wouldn't want to be holding either XM or Sirius stock right now..
You raise some very good points. However, it was Sirius which initiated a merger. I think this activity indicates that it "needed" the merger, not XM. In any event, as was said above, Satellite Radio will survive if the merger fails. Apple, Google, one or more of the automobile companies will make sure of that. The service is valuable to the subs, this is why it has taken off so well in the last 3 years. The success of Sat Radio is largely due to Mel's wrecking terrestrial, and people liking commercial free programming, which they cannot secure elsewhere.
Sirius CEO Karmazin to FCC: I'll Sue!
Sirius Satellite Radio CEO Threatens to Sue FCC if Merger with XM Satellite Radio Is Blocked
By John Eggerton -- Broadcasting & Cable, 11/10/2007 10:15:00 AM
In an interview with the Chicago Tribune, Sirius Satellite Radio CEO Mel Karmazin said he will sue the Federal Communications Commission if it does not approve the merger of his company with XM Satellite Radio.
Karmazin has been pushing the merger for months, saying that it is a "no-brainer" that it will result in lower prices and more choice -- the companies have even offered an a la carte model to sweeten the deal because they would be more efficient together.
He also said it would not create a monopoly of the satellite market but instead a stronger competitor in a crowded field of audio delivery.
The FCC is in day 154 of its informal 180-day shot clock for reviewing mergers.The Justice Department must also clear the deal on antitrust grounds.
In the interview, Karmazin also said he thought Howard Stern's radio show was better before he moved to Sirius, because he doesn't have the FCC to kick around anymore, adding: "It used to be better radio when he was bitching, right?"
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