XM/Sirius to announce Merger today?

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Bob Loblaw
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XM/Sirius to announce Merger today?

Post by Bob Loblaw » Mon Feb 19, 2007 10:10 am

http://www.nypost.com/seven/02192007/bu ... lauria.htm
February 19, 2007 -- 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.
more at the link...

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Post by SPIKE NESMITH! » Mon Feb 19, 2007 11:33 am

Sirius Backstage sayeth:

[quote]In a NY Post article that was published today, SIRIUS and XM plan to announce the details of their Merger today. The Post has a picture of SIRIUS CEO Mel Karmazin with a caption “Done deal.â€

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Post by Arp2 » Mon Feb 19, 2007 11:51 am

It would be surprising that the two entities would announce a merger today, given that it is President’s day and the markets are closed.
True...probably.
Assuming a merger did happen, it would be much more likely to be announced when the market was open, simply because it could make the stock price jump immediately, allowing executives to pocket millions and shareholders to be happy. Announcing it now would give stockholders 24 hours to look it over and find any downsides, potentially making the stock not jump as much or be flat on the news tomorrow.
Um... :? ...gee, you know, that sounds like internet-stupid-stuff-that-the-writer-thinks-makes-him-look-smart kind of talk.
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Post by The People's DJ » Mon Feb 19, 2007 12:05 pm

Arp2 wrote:Um... :? ...gee, you know, that sounds like internet-stupid-stuff-that-the-writer-thinks-makes-him-look-smart kind of talk.
Sorta like Mark?
:lol: :twisted:

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Post by Zak Tyler » Mon Feb 19, 2007 12:24 pm

The People's DJ wrote:
Arp2 wrote:Um... :? ...gee, you know, that sounds like internet-stupid-stuff-that-the-writer-thinks-makes-him-look-smart kind of talk.
Sorta like Mark?
:lol: :twisted:

dude, you typed that in your "out loud voice" again!!!!
I'm not an idiot, but I play one on the radio.

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Post by The People's DJ » Mon Feb 19, 2007 1:21 pm

Zak Tyler wrote:
dude, you typed that in your "out loud voice" again!!!!
Guess I needed to shut my mouth.

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Post by SPIKE NESMITH! » Mon Feb 19, 2007 1:32 pm

Arp2 wrote:Um... :? ...gee, you know, that sounds like internet-stupid-stuff-that-the-writer-thinks-makes-him-look-smart kind of talk.
yeh, but it's Sirius Backstage, not a news source. It's more or less a blog with a forum.

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Post by SHOCKLEY » Mon Feb 19, 2007 3:06 pm

Surprise!!

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Post by Mark Hallburn » Mon Feb 19, 2007 3:07 pm

The big question would be: Will my XM receiver still work? Will my Sirius receiver still work? Will I be able to get BOTH signals? Will my rates go up?
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Post by Mark Hallburn » Mon Feb 19, 2007 3:11 pm

News For Putnam County
www.PutnamLIVE.com

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Post by Lester » Mon Feb 19, 2007 4:41 pm

Mark Hallburn wrote:The big question would be: Will my XM receiver still work?
Yes.
Mark Hallburn wrote:Will my Sirius receiver still work?
Yes.
Mark Hallburn wrote:Will I be able to get BOTH signals? Will my rates go up?
No. Different technologies. Newer radios might do both in the near future, but the ones today can't.

I suspect the best of both products will be merged onto a single providers offerings, and simulcast on both for a year or two. Then whoever has the oldest satellites will go away for good.

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Post by AmpedNow » Mon Feb 19, 2007 5:00 pm

What will probably happen is a compromise between XM's technology and Sirius' programming, and a new company name.

There will probably be several video offerings with all of that new bandwidth as well.

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Post by lastone » Mon Feb 19, 2007 5:08 pm

There are only the two sat music service providers are there not? And if they merge then there is only one provider of the service...correct? Then the FTC should scream bloody murder for it becomes a monopoly! Or are monopolies legal now?


just askin...
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Post by Lester » Mon Feb 19, 2007 6:05 pm

So if Sirius had come about without XM, would they have been forced to wait until a competitor came along before they could go on the air?

If Sirius went out of business, would XM be forced to go off the air?

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Post by Hoosier Daddy » Mon Feb 19, 2007 6:42 pm

Lester wrote:So if Sirius had come about without XM, would they have been forced to wait until a competitor came along before they could go on the air?

If Sirius went out of business, would XM be forced to go off the air?
Point(s) well taken.

8)
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Post by lastone » Mon Feb 19, 2007 7:44 pm

I guess I still haven't gotten over the Ma Bell BS.

So if Microsoft bought Dell and then Apple, it would be (by your logic) OK because there would be no provider of the service without the new company.

Or to put it another way; If WV Radio bought all the Huntington stations, every one, it would be Ok because without their ownership there would be no station in Huntington.

After thirty years of "more competition is good", buying out all the competition isn't only acceptable but desired?

I am just trying to understand how one provider of anything can be considered good. If it is so good and desired, why not apply this standard to everything. One utility company. One communications company. One entertainment provider. One health care provider. One insurance company.......

Anyway, according to tonights news the reason for the merger is that both companies are in financial trouble. To those who said OTA was dead; WE TOLD YOU THIS WOULD HAPPEN!
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Post by Big Media » Mon Feb 19, 2007 9:37 pm

My way off base predictions: First, I doubt the FTC will allow this merger. They would ultimately have final say. Second, if they did, the following will happen within the next 5 years:

AT&T will purchase Verizon, Verizon Business, and Verizon Wireless. The newly formed company will be called Bell Telephone, or some variant thereof.

Wal-Mart will acquire Sears/K-Mart through a hostile takeover.

Mark Hallburn will become mayor of Hurricane and funnel parking ticket funds into his personal account, thus, allowing him the financial leverage to purchase Wal-Mart/Sears/K-Mart such that he can shut the Hurricane store and build Mark Hallburn Auto Mall

Jessica Ralston finally says yes and becomes Jessica Ralston-Nunley.

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Post by AmpedNow » Mon Feb 19, 2007 9:57 pm

lastone wrote:Anyway, according to tonights news the reason for the merger is that both companies are in financial trouble. To those who said OTA was dead; WE TOLD YOU THIS WOULD HAPPEN!
All I've ever said was that radio would have to adapt to no longer being the lone audio entertainment source. I never said that it would die.

But since satellite radio is dead, it's now safe to return to automated 50-song playlists with 15 minute stop sets.

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Post by Lester » Mon Feb 19, 2007 10:20 pm

lastone wrote:I guess I still haven't gotten over the Ma Bell BS.

So if Microsoft bought Dell and then Apple, it would be (by your logic) OK because there would be no provider of the service without the new company.

Or to put it another way; If WV Radio bought all the Huntington stations, every one, it would be Ok because without their ownership there would be no station in Huntington.

After thirty years of "more competition is good", buying out all the competition isn't only acceptable but desired?

I am just trying to understand how one provider of anything can be considered good. If it is so good and desired, why not apply this standard to everything. One utility company. One communications company. One entertainment provider. One health care provider. One insurance company.......

Anyway, according to tonights news the reason for the merger is that both companies are in financial trouble. To those who said OTA was dead; WE TOLD YOU THIS WOULD HAPPEN!
I'm trying to figure this post out... the best I can come up with is WHAT?!?!?!

XM is called XM for a reason... AM, FM, XM. They have competition... it's called terrestrial radio... perhaps you remember it, it's what they target in their ads instead of each other? It's the service that people who don't want to pay for satellite use every day... it's the service some people actually go back to when they have a great radio market they live in. (IE: Austin, TX.) Satellite radio has competition, regardless of how many companies are providing a satellite based music stream.

WVRC taking ownership of an entire market isn't a close comparison... Microsoft buying Dell and Apple isn't even a relevant comparison, unless Sirius was snapping up XM, all terrestrial radio stations, Internet streams, CD manufactures and vinyl pressing plants. If you're really wanting satellite to kill the terrestrial star, it's going to require a strong and solid product moving forward... not great sound/shitty shows on one, and vice-versa on the other.

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Post by AmpedNow » Mon Feb 19, 2007 10:41 pm

Lester wrote:If you're really wanting satellite to kill the terrestrial star, it's going to require a strong and solid product moving forward... not great sound/shitty shows on one, and vice-versa on the other.
Yes, but this merger would put them in a much better position financially to mass market satellite radio, as well as develop newer, easier-to-use technology. The NAB knows this, which is why they were quick to respond to the news.

But even then, the one advantage that terrestrial will always have over satellite is that it's free. Satellite has yet to overcome that huge psychological barrier about "paying for radio"...

It's only us tech geeks who never thought twice about it.

:lol:

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