Whoa there. Out of nowhere comes an article on Ars that claims XM and Sirius are in “low-level merger talks” with each other. This would be absolutely fantastic for customers of the two services. You’d be able to get tons of music, better service, Howard Stern and Opie & Anthony, your favorite sporting events, and a ton of other features all from one provider. Not to mention improved quality in service for a lower cost.
Another great reason for a merger would be to try to get both companies out of debt. Currently, neither company is making a profit due to their operational costs and other expenses. CEO of Sirius Satellite Radio Mel Karmazin also said the following:
”I have focused my entire career on shareholder value and wealth creation. Often mergers allow for that. I combined my radio company with CBS, and I combined CBS with Viacom.”
Looks like someone’s out to make a few gajillion bucks and dominate satellite radio. We’ll keep you posted with any new merger news as this continues.
Sirius CEO talks merger [Ars Technica]
You think this rumor is good news? You poor misguided soul! Absolutely not! This merger would create a monopoly, and any undergrad slugging through Econ 101 can tell you monopolies are bad, bad, bad for consumers. With no competition forcing them to work for their customers to earn their revenue the monopoly company will be able to decrease their level of service to cut costs and raise their prices with little fear of losing customers. Indeed, a monopoly such as this only stands to benefit the company’s lawyers and executives while hanging the consumer out to dry. Let’s hope this rumor is false or, if true, that the FTC gives it the pro-competition regulatory HELL NO!
Xm is nothing short of pathetic from top to bottom. I am hoping that Mel can save us all from Panero and the clowns at XM !
Max pain on XMSR PPS is now $ 7.00…on the other hand, I see SIRI at $ 10.00 pps by the end of 2006. Why in world would Mel be interested in XM when XM is heading to bankruptcy.
All monopolies are certainly not bad for consumers. Some are. Some are not. It’s not as black and white as the business hating media and government elite would like you to think. Keep in mind that there would still be competition from traditional radio and HD radio. Saying there would be a monopoly in satellite radio is like saying there would be a monopoly in round 3-hole punchers if only one company could make them. I could still buy a square or triangle 3-hole punch from someone else.
I have had Sirius and XM, and I must say that I personally like Sirius more. 90% of my time is spent listening to Howard Stern (available only on Sirius of course) and ESPN Radio (available on both) and I cannot stand O&A.
I will say though, I do miss The Bob Edwards Show on XMPR and if I could have that added to the Sirius lineup, even better.
SIRI is headed straight for bankruptcy.
They are running out of cash.
XM will buy their leftover junk at SIRI’s BK liquidation sale.
Where does it say they are in “low level merger talks”? All I see is ANOTHER wishful-thinking-quote from good ole Mel about a year-old rumor that XM continues to (rightfully) ignore when they are asked about it.
Give it a rest already, this is a story about nothing.
It amazes me how many mis-informed souls there are out there. And also how many zombies still hanging on to Stern as if he were still relevant. XM is very close to reaching the positive side as far as cash flow goes. Sirius is deeply in debt. (mostly due to Sterns massive ego) A merger is a very bad idea. Bad for listeners, and bad for share holders.
are you freaking kidding me?? sirius stock is unbuyable and XM is soaring again; XM will operate on a cash-flow basis by the end of this quarter…can serious say that??!!? howard is a hack that couldn’t adapt; mel is a douchebag that is having trouble staying in the news because serious is in BIG trouble
Stupid Mel shooting his mouth off again.
Trust me guys , there is going to be No Merger. They just are saying that in an attempt to boost sales & up their stock.
Low level = Not even discussed.
Currently XM is beating sirrius big time , If things continue to go the way they are they will make a profit well before sirrius will.
This is due to the fact sirrus is buying up Talent At Ridiculous prices. While Sirrius’s Howie Factor has only managed to garnish in at most 3 million subscribers (im being generious) , a Far cry from his 12 million listeners he had before.
Why would XM wanna share the Tab on howies grossly overpaid butt when he did not even come close to bringing in the subscribers he say he has or they expected him to.
Trust me I have listened to howard stern , he makes outrageous claims all the time that Sirius is doing way better than XM.
Have a look at the stock prices and tell me thats true.
Sirius = http://money.cnn.com/quote/quote.html?symb=SIRI
XM = http://money.cnn.com/quote/quote.html?symb=XMSR
as you can see XM is worth almost 3 times as much as the little doggie company. But if you use Howie Math , then Sirius is doing better.
WHOO WHOO WHOO , TELL EM FRED. I INVENTED EVERYTHING.
Another story about nothing. SIRI is going down the shi**er, XM is not. End of story.
I used ta give potato chips to the liddle ones during heavy negotiation taalllksss…………. If i was hugh, i would tell Mel how many year young he is and give him a kiss on his neck….I like that……………… I used to have sirius sit on my knee when they’s were little………………. I’d tell them stories of the good old days.
RRRaaaZZZllleee DDDaaaZZZllleee
Boy I don’t know who Muddy could be.. Mr. Black ninja. Razzle Dazzle!
This would be good. It wouldn’t be a monopoly. Much as Alcoa once argued, the competition isn’t in aluminum, it is in frying pans. IPODs and other mediums directly cut into satellite radio’s market.. so pricing and monopolistic tendencies should be an issue if the merger occurs.
Xm destroys Sirius. Any Idiot can see that. If you like Howard and went to Siirus because of him, you cannot be faulted, But don’t pretent to have had Xm and then Claim you listen to Howard 90%, you didn’t have XM, You just hate O&A and are so drinking the koolaid. XM has better tech, better content. Facts don’t lie, just Howard
The fact that mel discussed it means it is NOT going to happen. If it did he would be open to SEC violations and investigation. What Mel is doing is called a Lead Ballon in industry-speak. Put it out there and see if it floats. Unfortunately for SIRI, XM has stated publically that they have no interest in absorbing more debt. XM’s strategy is for SIRI to go bankrupt and then have a Sirius unit trade-in program to pick up the disenchanted Sirius listeners. Then they will melt down the SIRI units and make a small planetoid out of them and block the ozone hole and save the environment.
In reality SIRI will drive their own stock price low enough for a media conglomerate to buy them at a reasonable price. SIRI will see
All you Xm supporters forget one thing when you say Stern is a hack. Ok you can have a opion but look at the facts. XM has had to reduce number of subscribers prediction by year end twice. Sirius every quarter even the 4th of last year has out sold XM. This last quarter it was Xm 200,000 something and Sirius 400,000 something. So say what you want if you like Stern or not. The bottom line is something has turned Sirius around in the past year to make them the number one selling and soon to pass XM in subcribers. So what would that one thing be oh I guess it might be Howard Stern, THE KING OF ALL MEDIA. I can’t wait for the XM funeral Stern will hold for them.
They have these talks every year. And stupid rumors are spread every year.
Both companies will probably make it in the long run.
Though sirius still sucks ;)
You all talk as if YOU know something they dont! Give me a break!! and Get a Job!
quote:
“This last quarter it was Xm 200,000 something and Sirius 400,000 something. So say what you want if you like Stern or not. The bottom line is something has turned Sirius around in the past year to make them the number one selling and soon to pass XM in subcribers.”
the only reason why sirius’ numbers may be rising is because they’re counting all the cars sitting on lots with activated radios …
It’s not hard to see a company that is clutching at straws to keep investors interested. Sirius has old Techonology – an Old Stern how is no longer funny – and a bunch of small minded listeners.
XM clearly is the leader in the industry – They are smart with the Talent the get and is just a better prduct. Love Live XM and long live Stern crying himself to sleep every night knowing he really is a washed up hack!
Whoo whooo i invented Air Robbin!
Muddy
XM market cap is $4.3B, Sirius is $5.8B. shareholders value Sirius 35% more than XM.
They will not merge, goverment wont allow it, plus we need competition, keeps subs lower and content better period……………
Quote:
“XM market cap is $4.3B, Sirius is $5.8B. shareholders value Sirius 35% more than XM.”
I can go borrow alot of money, and say that I have alot of money. The bottom line is that XM is going to turn the 4th quarter, cash positive. That means in the BLACK baby!
Sirius will not hit the black numbers for at least 5 more years. During that time they will be paying $500,000,000 for a guy that works 118 days a year. Use your fingers and count. It won’t take long to figure out that the money just isn’t going to be there. And when you look at what XM has as far as radios and new things in the pipeline, there is no comparison. Do I want to walk around with my XM at a ballgame and listen to it, or record it at home so I can take it to work with me?
Sirius is pushing junk for equipment that was out dated and at least 18 months behind anything that XM has. And that is their cutting edge. Sounds kind of dull to me.
It’s over Johnny. Look at the stock price. XM moving up, Sirius flat. XM scores a coup with free FM. Sirus gives Howard more days off. Howard is like Lex Luthor in Superman, relegated to a pane of glass in outerspace. It’s time for Howard to write a book again so he can get back on Late Night TV… at least the Carson Daley show.
My suggestion for a title would be “My Life with Robin…as a whole…I Quiver at the thought”
O n A Party Rock will bring the funny every day for years to come until it all implodes once again. It is the natural course of things. Until that day…………….Raaaaaaaaammmmoonnnnnnneee – Slap the Little Doggy Company subscribers with their own pink lipstick.
Its funny all the O and A fans yell how Howard is over. Xm are giving O and A away for free, that means they hold no value to Xm. You people will pay why give away for free. They are garbage, and they can’t even hold a number spot in the morning in New York where Stern held for 20 years. They were on Sterns show 15 years ago saying what big fans they were and doing Jackie impressions. They are rip off artists. They have no act but Stern, wether they are doing it or talking about him.
XM IS THE BOMB!!
RRRRRAAAAAAAAAMMMMMOOOONNNNNNNEE
Get this idiot a battery acid enema
RRRRRAAAAAAAAAMMMMMOOOONNNNNNNEE
Get HOO HOO to pay for the funeral dinner, but don’t show up
RRRRRAAAAAAAAAMMMMMOOOONNNNNNNEE
Get me a buckt of aids to pour down this guy;s sphincter with a slender funnel
You guys are hillarious…
I had a great time reading these comments, even though I gagged at some of the heinous grammatical errors. Anyway, its funny to see how many people write about XM’s great chances of achieving free cash flow by the 4th quarter ‘06. They have openly claimed that they are driving to achieve free cash flow sometime in ‘07. Sirius, however, has stated that they expect to reach free cash flow in the 4th quarter ‘06. (Not in 5 years as some moron posted) Anyway… again… I enjoyed all of the hillarious comments.
-Oh, and its outlandish to claim that a merger would create a monopoly. The figure I read was 6.8%- that is… the created company would represent 6.8% of the market share of audio entertainment. People who blindly shriek rape when they hear talks about this merger are ignoring the fact that if the end product of a Siri/XM merger is not great, consumers will turn to terrestrial radio, MP3 players, or the newly created podcasts.
-Denver-based analyst Kit Spring of Stifel Nicolaus & Co. gives the merger a 75% chance of occuring within the next 18 months. He claims that “A successful merger could create $7 billion of shareholder value.” I tend to trust scholars who have graduated from prestigous universities and have subsequently spent their entire lives professionaly combing through economic minutia to formulate opinions over random internet bloggers who write phrases such as “a opion” when intending to write “an opinion.”
What a great waste of time this was! Thanks for delaying my homework!
Quote
“Its funny all the O and A fans yell how Howard is over. Xm are giving O and A away for free, that means they hold no value to Xm. You people will pay why give away for free. They are garbage, and they can’t even hold a number spot in the morning in New York where Stern held for 20 years. They were on Sterns show 15 years ago saying what big fans they were and doing Jackie impressions. They are rip off artists. They have no act but Stern, wether they are doing it or talking about him.”
Response … Grrrrrr
#1 , there is something called advertising dollars jackass , people will pay more money to advertise on a show that reaches a bigger audience. A prime example is comericals durring the superbowl and the ridiculous prices people pay for a comercial spot that reaches a massive audience. So in the end XM gets a cut of those advertising dollars, so its not exaclty giving them away for free is it if you tend to make more money out of it in the end.
#2 – the free FM show and XM show are 2 totally different shows pretty much.
#3 – Your Right , Stern was good 15 years ago and im sure you can find audio from O & A to support that , but the fact is he hasn’t done a half decent radio show since janet jackson showed her tits at the superbowl half time. Boooo hooo hooo the FCC won’t let me say anything Booo Hooo Hoo im gonna go to the little doggy company because they are going to pay me way more money to speak to less than 1/5th my audience & then claim i was the first to go to Satallite cause i evented everything.
#4 – O&A fans love Jackie the jokeman & i Personally though he was awsome on the show. it’s just Too bad Howard didn’t or else im sure he would still be on the show.
Grrrrrrrrrrr
I think many kind hearted Stern fans would be into O and A if they just opened their minds to something else. Howard did not invent everything. O and A are honest and might I say, fancy gentlemen. One needs to listen to them to get the Truth. Anyone who says they copy Howard need to get a new mantra. The Virus is spreading, the Pests shall inherit the Earth, and Jim Norton has AIDS. What could be better? —- Also, F Jackie.
I heart Than
what’s up with the monopoly boogeyman posts? Anyone who has taken ECON 101 knows monopolies are bad? Maybe you should have stayed for the entire class, buddy. UNREGULATED Monopolies are bad. If you think the FCC would approve the merger (which they’d have to) without placing some significant constraints on the service you’re nuts.
As for other concerns that content, service, overall quality would go down, I have this to say:
Content? Music is music, they have to play popular crap or no one will buy subs. And the talent is all under contract.
Service? It sucks so bad right now, anything would be an improvement
Quality? These plug and play radios are pieces of shit and you all know it. There’s no way this isn’t a win-win.
I like pictures of big black unclipped african gentlemen, please send them to steve@foundrymusic.com
Sirius’ number are terrible; I’m sorry
This….hehe…article is…hehe, sorry, I’m in the office right now. But I think this article
RAMMMMOONE, this article sucks big fat dog dick.
RAMMMMOONE, Howard can nose fuck Robin in her cunt.
RAMMMMOONE, Robin is Kramer’s worst nightmare.
XM is better because…..
Howard can get his sirius unit and flush it down the toilet and then go fornicate with his mother.