Guest JMT Posted January 26 Report Share Posted January 26 SATELLITE CHAT By TIM ARANGO NY PostJanuary 26, 2005 -- Satellite radio rivals Sirius and XM have been cozying up to each other, The Post has learned. While talks have not advanced far, executives from both sides have been meeting lately to discuss the possibility of a merger, according to several sources close to the matter. Sources say the executives have not yet discussed price. They have, however, been weighing any potential antitrust concerns that would arise from a deal, which would create a monopoly in the nascent satellite radio business. The two companies have talked in the past about merging, but the discussions never got to an advanced stage. But in the wake of Sirius' hiring of former Viacom President Mel Karmazin in November, the issue has gained renewed urgency, sources said. "Mel is a roll-up guy, a deal guy," said one source close to Karmazin. While many people in the media industry say it's inevitable the two companies will eventually merge, sources say a deal could be at least a year away. A spokesman for Sirius said, "as a company we do not comment on rumor or speculation." An XM spokesman did not return a call seeking comment. The satellite radio industry is currently a Federal Communications Commission-licensed duopoly, and both XM and Sirius are hoping they can convince the FCC to redefine the market to include all content over wireless broadband services. As mobile technology in the United States advances, XM and Sirius are hoping the FCC will consider satellite radio as part of the broader industry of delivering music and other content through mobile devices, such as cellphones, say sources. A merger between XM and Sirius — neither of which is yet profitable — would alleviate a price war for premium content and allow the two companies to save significant amounts of money on marketing costs. Merrill Lynch analyst Laraine Mancini said in a conference call earlier this week that one of the chief risks of investing in the companies' stock is a potential price war and "irrational bidding" for content. Last year, Sirius announced a blockbuster $500 million deal to bring Howard Stern from traditional radio to satellite radio beginning in 2006. While some hailed the deal as a milestone for the fledgling sat radio industry, some on Wall Street said the company overpaid. Quote Link to comment Share on other sites More sharing options...
Guest pod Posted January 26 Report Share Posted January 26 Maybe not? Quote Link to comment Share on other sites More sharing options...
Kamikaze1414779018 Posted January 26 Report Share Posted January 26 I am not sure how this will affect the stock price or Sirius. My SIRI stock took a major dump today, but I am holding on to it long term. I am just watching to see who gets the rights for college football. Right now they split it up, if one provider gets all college football, that would be huge. Quote Link to comment Share on other sites More sharing options...
Guest guyman1966 Posted January 27 Report Share Posted January 27 Mel K. will start rumors just to hike up stock prices and create deals out of thin air. Watch this closely. Quote Link to comment Share on other sites More sharing options...
bornslippy22 Posted January 27 Report Share Posted January 27 GREAT!!! well everyone who knows anything, knows that Sirius needs help BADLY....XM will have to save their sorry ass.... Quote Link to comment Share on other sites More sharing options...
Guest guyman1966 Posted January 27 Report Share Posted January 27 GREAT!!! well everyone who knows anything, knows that Sirius needs help BADLY....XM will have to save their sorry ass....I am to EuroTrash what you are to Sirius.(Sirius is still better than XM - Music, Sports, Howard) Quote Link to comment Share on other sites More sharing options...
bornslippy22 Posted January 27 Report Share Posted January 27 (Sirius is still better than XM - Music, Sports, Howard)lol...music XM destroys Sirius...not even close...Sirius might be better in SOME talk/sports shows...but i am young, i want music...not talk shows...xm's stock is at 33.16 and from 1-10 is ranked a 9...good growth and little risk...too bad we cant say the same for Sirius...Sirius is doomed...accept it...move on...and buy Xm... Quote Link to comment Share on other sites More sharing options...
tgibson Posted January 27 Report Share Posted January 27 They will both be around for a while.- no way the DoJ lets a merger happen- content will continue to suport both in order to keep pricing honest (i.e. NFL on Sirius, MLB on XM...)This is just message board talk... Quote Link to comment Share on other sites More sharing options...
bornslippy22 Posted January 27 Report Share Posted January 27 They will both be around for a while.wanna make a bet on that?? Quote Link to comment Share on other sites More sharing options...
Guest Diabolique Posted January 27 Report Share Posted January 27 good to know, I'm looking to purchase one soon. Quote Link to comment Share on other sites More sharing options...
bornslippy22 Posted January 27 Report Share Posted January 27 good to know, I'm looking to purchase one soon. if u want good electronic music and others...buy XM...Xm has the essential mix, omid 16b show, deepsky show, satoshi tomeii with the saw records show, city deep with halo, live at the moulton studios with jay j, dfuse show and many more...XM SPANKS SIRIUS in music...i have it and i love it... Quote Link to comment Share on other sites More sharing options...
tgibson Posted January 27 Report Share Posted January 27 They will both be around for a while.wanna make a bet on that?? Sure…You set the terms. I’m an action junkie, I’ll bet on anything… Quote Link to comment Share on other sites More sharing options...
bornslippy22 Posted January 27 Report Share Posted January 27 Sure…You set the terms. I’m an action junkie, I’ll bet on anything…Sirius goes belly up in 2 yrs...if they merge bet is voided...winner buys the other a round...gentleman's bet Quote Link to comment Share on other sites More sharing options...
tgibson Posted January 27 Report Share Posted January 27 Sure…You set the terms. I’m an action junkie, I’ll bet on anything…Sirius goes belly up in 2 yrs...if they merge bet is voided...winner buys the other a round...gentleman's bet I'll take that. Done. Here's the deal though, in that scenario I bet we'd see a merger permitted simply because it would be in the better interests of the customers to have continued service/honored contracts, than to be left out and then have to sign up with XM.Sirius is also working on the video function (which XM does not have). I don't think it's hard to envison a time where all these new SUVs with DVD players, etc in the back seat for the kids would have 2-3 cartoon channels or movie channels or something....Plus, there's the whole Stern-factor. Some people really think that his listenership switching over could send a huge boost in customers to SIRI – especially since they might be customers that would otherwise not be satellite radio listeners ever.Either way...it's an exciting new industry to watch I think... Quote Link to comment Share on other sites More sharing options...
bornslippy22 Posted January 27 Report Share Posted January 27 I'll take that. Done. Here's the deal though, in that scenario I bet we'd see a merger permitted simply because it would be in the better interests of the customers to have continued service/honored contracts, than to be left out and then have to sign up with XM.Sirius is also working on the video function (which XM does not have). I don't think it's hard to envison a time where all these new SUVs with DVD players, etc in the back seat for the kids would have 2-3 cartoon channels or movie channels or something....Plus, there's the whole Stern-factor. Some people really think that his listenership switching over could send a huge boost in customers to SIRI – especially since they might be customers that would otherwise not be satellite radio listeners ever.Either way...it's an exciting new industry to watch I think...both companies are looking into video stream (i read an article about this months ago), hell i hear even direct tv wants in on sat. radio...but this industry IS exciting to watch and def. to invest in... Quote Link to comment Share on other sites More sharing options...
tgibson Posted January 27 Report Share Posted January 27 I'll take that. Done. Here's the deal though, in that scenario I bet we'd see a merger permitted simply because it would be in the better interests of the customers to have continued service/honored contracts, than to be left out and then have to sign up with XM.Sirius is also working on the video function (which XM does not have). I don't think it's hard to envison a time where all these new SUVs with DVD players, etc in the back seat for the kids would have 2-3 cartoon channels or movie channels or something....Plus, there's the whole Stern-factor. Some people really think that his listenership switching over could send a huge boost in customers to SIRI – especially since they might be customers that would otherwise not be satellite radio listeners ever.Either way...it's an exciting new industry to watch I think...both companies are looking into video stream (i read an article about this months ago), hell i hear even direct tv wants in on sat. radio...but this industry IS exciting to watch and def. to invest in... I got out of SIRI around 8...(in for a few months at 3). It's still pretty speculative though... Quote Link to comment Share on other sites More sharing options...
bornslippy22 Posted January 27 Report Share Posted January 27 I got out of SIRI around 8...(in for a few months at 3). It's still pretty speculative though...have check out XM's stock?? Quote Link to comment Share on other sites More sharing options...
tgibson Posted January 27 Report Share Posted January 27 I got out of SIRI around 8...(in for a few months at 3). It's still pretty speculative though...have check out XM's stock?? Yeah. Crazy over-valued. Speculative as crap... Quote Link to comment Share on other sites More sharing options...
bornslippy22 Posted January 27 Report Share Posted January 27 Yeah. Crazy over-valued. Speculative as crap...think of it like this...they have more subscribers....they have more money in the bank than Sirius...they were the first ones (i believe) in the game...all other coming in have to compete with them...i dont think this is a high risk stock at all...and with their plans for the future, the stock is just going to climb higher and higher...IMO Quote Link to comment Share on other sites More sharing options...
tgibson Posted January 27 Report Share Posted January 27 Yeah. Crazy over-valued. Speculative as crap...think of it like this...they have more subscribers....they have more money in the bank than Sirius...they were the first ones (i believe) in the game...all other coming in have to compete with them...i dont think this is a high risk stock at all...and with their plans for the future, the stock is just going to climb higher and higher...IMOI prefer to look at it this way. Neither of them are cash flow positive, and it’s debateable whether either of them have enough cash to get them to that point. The big issue with these guys is what is the SAC going to end up looking like (sub acquisition cost) – a very tough number to project because the market and industry is still evolving. Is it going to be just giving away a free year subscription? Free equipment? Car dealer or agency incentives? What about marketing – are they going to start a massive TV ad campaign? With so much debt on the books, cash interest could come and bite you in the @ss. That’s my only reason for saying they’re speculative. The fact that they were first-mover means only that they got a head-start in signing up subs… Quote Link to comment Share on other sites More sharing options...
bornslippy22 Posted January 28 Report Share Posted January 28 this reminds me...i fucked up my XM antenna need to get a new one...lol Quote Link to comment Share on other sites More sharing options...
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