OT: Sirius/XM to merge

[F Angelos]

According to today's NY Post. Get ready for a nice subscription hike.

[Admin Steve]

This has been a rumor for about three months. Looks like it may be fact. Both companies reduced their 4th quarter subscription numbers and shares of both are in the toilet.

[Mista T]

Don't be surprised to see Justice quash the merger. The anti-trust lawyers with the blinders on did just that a few years ago to the proposed merger between Direct TV and Dish TV. A Sirius/XM merger should be in the best interest of consumers, by consolidating resources. The marketplace should decide what best for US consumers - not the heirs to the "trust-busters".

I have my doubts about the viability of satellite radio subscription services per se without an increase the services offerred. I can just go out to my car to hear Ravens or political talk on several local AM stations or rock or country music on about 10 Baltimore or DC FM stations. So there's no attraction to me to satellite radio, unless I am renting a car to drive in the remote mountains or desert. However, there could be greater demand for satellite radio if services could be expanded to include two-way communications, video, or greater synergy with GPS applications (already started by XM), or with cellular services.

[F Angelos]

Don't be surprised to see Justice quash the merger. The anti-trust lawyers with the blinders on did just that a few years ago to the proposed merger between Direct TV and Dish TV. A Sirius/XM merger should be in the best interest of consumers, by consolidating resources. The marketplace should decide what best for US consumers - not the heirs to the "trust-busters".

I have my doubts about the viability of satellite radio subscription services per se without an increase the services offerred. I can just go out to my car to hear Ravens or political talk on several local AM stations or rock or country music on about 10 Baltimore or DC FM stations. So there's no attraction to me to satellite radio, unless I am renting a car to drive in the remote mountains or desert. However, there could be greater demand for satellite radio if services could be expanded to include two-way communications, video, or greater synergy with GPS applications (already started by XM), or with cellular services.

You're crazy! Terrestrial radio sucks!! If you're not getting Sirius you don't know what you're missing. Thanks to the jesus freaks in Congress everything in regular radio is awful.

[Denver John]

Satellite radio is great for me. Clear Channel absolutely ruined terrestrial radio in Denver. When I drive my wife's car, which doesn't have Sirius, I have to turn off the radio. One song gets played and then there's 10 minutes of Shane Company commercials. Plus all the stations are owned by by the same company, so they coordinate the commercials to all be on at the same time.

As for passing the DOJ muster, they need to get their heads out of their asses and realize that the broadcasting/entertainment industry has changed in the past 10 years. Having separate satellite companies (Radio and TV) already hurts the consumer, since both companies go out and spend outrageous amounts for exclusive programming (NFL and NASCAR on Sirius, Sunday Ticket & MLB on Directv, etc.), or companies like Disney can charge outrageous fees for channels like ESPN, because they know if a provider doesn't carry the service, the other company will take the subscribers. I'll take my chances on the monthly subscription rates if it means the sat companies no longer get played against each other and have double the bandwidth. Although they don't work for me, there's still terrestrial radio and and cable TV to keeps things competitive.

[festivus]

Satellite radio is great for me. Clear Channel absolutely ruined terrestrial radio in Denver.

Ahh, Clear Channel (http://www.citypages.com/databank/26/1263/article12961.asp).

If Clear Channel feels threatened, count on Bush administration opposition. :mad:

[Ravens0587]

unedited, I can pause and rewind and not all of us live in big citys with lots of radio stations

[Mista T]

You're crazy! Terrestrial radio sucks!! If you're not getting Sirius you don't know what you're missing. Thanks to the jesus freaks in Congress everything in regular radio is awful.

I've listened to Sirius or XM many times in rental cars, so I know what I'm not paying for -- thanks just the same. To my knowledge, neither system carries Ravens talk shows. Or traffic reports on DC or Baltimore freeway jams.

As to my being crazy: 95% of radio listeners tune in to local AM or FM stations. Are we all crazy?:insane:

[Ravens0587]

Sirius has both dc/baltimore weather/traffic reports

Sirius channel 152, updated every 4 minutes

[Greg]

"They don't have local talk in regard to news and sports, about 90% of my radio listening. If I want music I put in a CD. I am with T except I see sat radio down the road as offering these things and growing. Cable had little market for years and many asked "why pay for TV when it's free?" Well, now most everybody has cable or satellite.

That being said, I always come in on the tail end of these technologies after all the have-to-havers are in and the volume makes it more affordable. I am still watching regular TV, 27 inch in the family room and 31 in the basement. I can wait until the big HDs are down around $500.

[skimmy]

As to my being crazy: 95% of radio listeners tune in to local AM or FM stations. Are we all crazy?

If 95% of people still listen to AM/FM radio then the fed would have no reason to stop such a merger you'd think. I had given up on FM radio for music years ago (thank god for CD changers and later mp3 head units), but I still tune into AM radio for sports content as long as I'm within range. If I still lived in the Baltimore metro area I would probably still listen to Baltimore AM stations. I can get WBAL 1090 up here in Delaware but since WBAL dropped the O's and Terps I've listened less and less to WBAL. I have sirius right now, and I would welcome a merge with XM because then I'd be able to listen to the Ravens, O's and Terps games no matter where I am on my Sirius Stilletto whether its the 30th Street train station in Philly or at home in Newark, Delaware.

[Bez513]

I'm sorry but once I had Sirius I never listen to AM/FM. There is just too many good stations on Sirius I will never go back. I'm willing to pay the $$$ for a good selection and not have to deal with all the commercials on AM/FM.

I look forward to even more selections...even if it comes at a little more $.

[Losac]

I fell in love with Sirius and cannot stand terrestrial radio anymore. My car is in the shop right now and I have to make due without Sirius for a week and it's killing me. The commercial free music drew me in and I became a huge Howard Stern fan after subscribing.

And Mista T - Sirius does have a DC/Baltimore traffic channel. XM has one station devoted to DC traffic and one devoted to Baltimore. They also have channels devoted to traffic on most major cities in the US (Boston, New York, Philadelphia, LA, etc.)

Everyone could see this merger coming from a mile away. Both companies were losing too much money for it not to happen.

[middleriverterp]

I would have to agree with those who love SATRAD. I got Sirius for Christmas and wasn't too sure if I would enjoy it, but like Losac, my car is getting worked on and I am stuck with regular radio. Sirius saved me on my families trip to NH with it's NYC traffic staion and the ability to have music even in deepest darkest New England was awesome. I will never go back to terrestrial and look forward to having MLB nad NFL on the same service.

[crazyraven]

DC and Baltimore terrestrial radio sucks. Its unlistenable. If you can stand it and have the patience for it....God bless. I tried but after howard left I had to get my subscription and it took 9 month before I did it.

Look, No one is buying Sirius or XM for its Traffics or weather reports. Commercial free music, The NFL and Howard stern are the things that drew me in. Baseball is the one thing that XM has that I would really love to listen to and If the merger happens, and it should, I will be able to listen to Yankees as if I was back in NY. That's a big deal.

[festivus]

DC and Baltimore terrestrial radio sucks. Its unlistenable. . .

Look, No one is buying Sirius or XM for its Traffics or weather reports. Commercial free music,

Might be a little off-topic, but I really like the commercial free music on 89.7 WTMD (http://www.wtmd.org/), broadcast from Towson University.

[braven98]

I have stock in both companies,also I have Sirius in my new car and listen to it 99% of the time

[braven98]

I hope you feel better...I dont know what I will do with the stock at this moment.Ive been working 70 hour weeks as of late

[braven98]

Agree with the nft network being awesome,they had the Jamal contract news before ANY local news feed in Md had it.

[BertJonesMyHero]

You're crazy! Terrestrial radio sucks!! If you're not getting Sirius you don't know what you're missing. Thanks to the jesus freaks in Congress everything in regular radio is awful.

You may not like what T said, but he happens to be correct.

http://news.yahoo.com/s/bw/20070223/bs_bw/0710b4024055

XM & Sirius: What A Merger Won't Fix

You may dig Satellite radio, but the #'s do not look good for its survival. At least not with it's current model.

And I'm still trying to figure out what Jesus freaks has to do with anything.

[braven98]

:rolling: Cable TV will never last either,who would pay for TV when its free

[Ravens0587]

yeah who in their right minds would pay for something that's free?

I do have a question, hopefully somebody can answer, You know Terrestial radio is free all you have to do is buy a radio.

I pay for sattelite radio so I can have commercial free music.

Why in the hell am i paying for cable/sattelite and there are still commercials???

[braven98]

When I lived in Nj in the 70s we had cable and there was no commercials

[Sports Steve]

The NFL Network on Sirius is outstanding and I listen to it everyday. Football 24 hours.

:jester: :jester:

[Greg]

Sorry, but Siri's outstanding shares is just one of the reasons along with its dilution ...
Outstanding shares IS dilution, same thing. The share value is diluted due to the number of outstanding shares.


When Siri traded over 255M shares in one day last week, you can bet that half of those shares don't even exist because they gave the shares away to insiders and to creditors.
Those shares do indeed exist, they just weren't brought to market via an offering but instead were used as payment in some form. It makes no difference, they are shares of the company just like those brought to market in an IPO or subsequent offering. And they all contribute to share dilution.


It doesn't have enough of anything to flood the market.
It has enough shares outstanding to flood the market and dilute the value. I own some Sirius as well and it has done well for me but they have killed the share price but flooding the market. The fact that they flooded the market using the stock and options instead of cash as payments does not make a difference to us share holders, they have still flooded the market with a tremendous amount of shares. The shares given to Stern, etc. They are shares just like any other and hurt share value. When you look at earnings per share ALL shares are included in that.

[Hooper]

I read 7 out of 10 people still listen to free radio. With the radios being put in new cars I can see that number level out in the next 10 years.

I bought the radio for Howard but Ferrall, The NFL & Nascar Network are off the hook. Buddy Baker on the Nascar car channel is worth the 43 cents a day.

[crazyraven]

I read 7 out of 10 people still listen to free radio

I dont think we will ever stop listening to Free radio. I think at one point we may see less radio stations on FM/AM with a national twist to it.

Honestly though Those who dont have sat radio are missing out big time. It really is great entertainment.

[Mista T]

It looks like it will take a year or more (http://www.washingtonpost.com/wp-dyn/content/article/2007/02/27/AR2007022701653.html) for your helpful :eyes: Congress and FCC to sort this one out:


Karmazin, who will face skeptical members of the House Judiciary Committee's newly formed antitrust task force, says satellite radio is in stiff competition not only with free, over-the-air radio but also with such newer products as MP3 players, Internet radio and music-downloading cellphones. "What I need to do is lay out the realities of the marketplace as we see it," Karmazin said in a telephone interview yesterday.

.... "What I'm concerned about now is whether we're creating a monopolistic situation," Rep. John Conyers Jr. (D-Mich.), who will chair the task force hearing, said in an interview yesterday. "I don't think it will stimulate competition, and it could very well take away from the competition taking place now in the industry."

The Justice Department and Federal Communications Commission, not Congress, will decide whether to allow Washington-based XM and New York-based Sirius to merge. But today's hearing seems certain to introduce the chief arguments for and against the plan, whose outcome may not be decided for nearly a year.

[PD101]

Trap, Siruis is a very long term play. When they start buying back shares they may become something more than a day traders delight. My guess is at the next market pull back they will get hammered.