Re: [Swprograms] Fwd: SIRIUS, XM SET TO CONFIRM MERGER PLAN TODAY

[Kevin Anderson <k9iua@xxxxxxxxx>]

I can certainly see savings in production costs, programming,
and administrative overlaps (such as subscription processing) by
a merger.

My curiousity is in how long they will rely on different
receivers, plus two sets of satellites and activated
frequencies.  The sooner they settle on just one set of
frequencies (i.e., effectively give up one of the FCC
allocations) the sooner a competitor might emerge again, should
someone choose to do so, and the sooner market clarity might
emerge for new subscribers trying to figure out which receiver
to buy, etc.  

The latter would be particularly critical to me, as I am
currently not, nor ever have been, a subscriber to satellite
radio.  Admittedly the existence of two systems, and therefore
the need to choose were I to subscribe, has been a major
resistance factor for me.  That and the desire not to have to
pay monthly fees in the first place.

Kevin Anderson

--- David Goren <dbgoren@xxxxxxxxx> wrote:

> >
> >
> >
> >
> >
> > HEAVENLY DEAL
> > SIRIUS, XM SET TO CONFIRM MERGER PLAN TODAY
> > By PETER LAURIA, NY Post. 2.19
> > Satellite radio operators Sirius and XM are expected to
> announce their
> > long-awaited merger today, according to a source familiar
> with the  
> > deal.
> > The two sides were locked in negotiations over the weekend
> trying  
> > to hammer
> > out a final agreement with an eye toward going public with
> the  
> > merger today
> > in Washington, D.C., where XM is based, this source said.
> > Talks were still going on at press time and the deal could
> fall  
> > apart at any
> > time. With antitrust issues of paramount importance, this
> source said
> > lawyers for both companies were working overtime to
> fine-tune the  
> > language
> > of the agreement and frame the discussion around the deal
> itself  
> > and not
> > regulatory concerns.
> > The transaction is expected to be structured as a merger of
> equals,  
> > but
> > given Sirius' higher enterprise value, shareholders in the
> Mel  
> > Karmazin-led
> > firm will likely come away with a larger percentage of a
> combined  
> > company.
> > According to the source, XM Chairman Gary Parsons will
> retain that  
> > title in
> > the combined entity, with Karmazin likely taking the CEO
> role. It  
> > is unclear
> > what role, if any, XM CEO Hugh Panero will play.
> > Combining Sirius and XM would result in a single satellite
> radio  
> > operator
> > with more than 12 million total subscribers. A deal would
> also  
> > marry Sirius
> > content, such as Howard Stern, Frank Sinatra and Nascar with
> XM's  
> > Oprah
> > Winfrey, Bob Dylan and Major League Baseball.
> > More important, analysts widely predict that a deal would
> also save  
> > the two
> > companies nearly $7 billion annually.
> > Karmazin and Parsons have been dropping hints since last
> summer  
> > about a
> > possible tie-up, believing that competition from terrestrial
> radio,  
> > online
> > radio and mobile music devices such as iPods have not only
> expanded  
> > the
> > marketplace but also lowered the regulatory hurdles to a
> deal.
> > In a note on Friday, Bear Stearns analyst Robert Peck
> speculated  
> > that Sirius
> > and XM needed to move quickly before their window of
> opportunity  
> > closed.
> > Gaining regulatory approval "could take up to 15 months;
> hence, we  
> > think any
> > proposed deal needs to be announced by the end of March to
> close by
> > mid-2008," Peck wrote.
> > On Friday, XM shares hit their lowest point since early
> November while
> > Sirius shares were approaching 52-week lows. Shares in both 
> 
> > companies did
> > trade on heavy volume and ended the session higher, with
> Sirius  
> > gaining 10
> > cents to close at $3.70 and XM jumping a dollar to $13.98.
> >
> >
> 
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-- 
-------------------------------------
Kevin Anderson, Dubuque IA USA, K9IUA
k9iua (at) yahoo (dot) com
http://postoilgeography.blogspot.com/
-------------------------------------


 
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