# Satellite Radio Merger in 2007?



## Nick (Apr 23, 2002)

Some think the merger of Sirius Satellite Radio and its rival XM will never garner enough support in Washington to allow a lone satellite radio company. Others say considering the entire landscape of digital music, a merger between the two yet-to-be profitable companies makes perfect sense and it could happen as soon as this fall.

Citigroup analyst Eileen Furukawa this week raised her 12-month price target on XM by $5 per share telling clients at an investor conference that she sensed an increased openness on the company's consideration of such a merger. On hand at the event: XM Chairman Gary Parsons and CFO Joe Euteneuer.

While it is true that the combination of the two satellite radio players would face some hurdles, Furukawa believes if the companies worked to resolve differences on how they count subscribers and pricing concerns, the deal could be beneficial for both sides. The companies could accomplish a great deal of cost-cutting by joining forces in areas like programming, marketing and satellite business, she said.

The analyst said XM believes if the Justice Dept. were considering the threat of competitive disruptions related to a possible merger, it would take a broad view of the competitive landscape - one including terrestrial radio, iPods and MP3 players, HD radio and internet radio. The regulatory wildcard, so to speak, remains with the FCC, Furukawa said.

She also said both XM and Sirius would have to reconcile several matters. For example, XM would probably demand a substantial premium if it were to be acquired by Sirius. Also, the two companies have different ways of separating line items on their financials. Furukawa maintained her "buy" rating on XM's stock and raised her price target to $21 from $16.

www.SkyReport.com - used with permission


----------



## La Push Commercial Codman (Jan 5, 2007)

Nick said:


> Some think the merger of Sirius Satellite Radio and its rival XM will never garner enough support in Washington to allow a lone satellite radio company. Others say considering the entire landscape of digital music, a merger between the two yet-to-be profitable companies makes perfect sense and it could happen as soon as this fall.
> 
> Citigroup analyst Eileen Furukawa this week raised her 12-month price target on XM by $5 per share telling clients at an investor conference that she sensed an increased openness on the company's consideration of such a merger. On hand at the event: XM Chairman Gary Parsons and CFO Joe Euteneuer.
> 
> ...


 Well a merge was attempted with Dish and DirecTV and failed. They said this 12 months back, They say this 6 month backs and a merge, No Way. The FCC and congress doesn't want a merge. Merge will fail. Sirius has been struggling for years. Sirius was struggling and they added howard stern, help some but not enough. Sirius will end up selling out to there people.


----------



## Bobby94928 (May 12, 2003)

XM is turning a small profit today....


----------



## rgraham541 (Aug 6, 2006)

Sirius has reported positive cash flow as of Jan 3rd:

http://www.smartmoney.com/bn/ON/index.cfm?story=ON-20070102-000373-2045


----------



## Ric (Apr 26, 2002)

I don't think you can compare D*/E* merge to XM/Sirius. Most of America has and uses free radio compared to free tv. Also, tv is a distributor of others content, radio distributes its own content. If they do merge, I just can't see how the public could be harmed


----------



## sorahl (Oct 24, 2002)

I don't care what they do as long as satellite radio remains solvent. I have become dependent upon satellite radio and despise 'free radio's lousy reception issues and poor content. I would need years of therapy if I no longer had my satellite radio!!!  some say I need years of therapy anyway but...


----------



## Nick (Apr 23, 2002)

I don't know who moved this thread (and I don't really care), but since it pertains to both
X* and S* equally, it should remain where I put it -- on neutral turf in the GD forum. :shrug:


----------



## harsh (Jun 15, 2003)

Ric said:


> I don't think you can compare D*/E* merge to XM/Sirius. Most of America has and uses free radio compared to free tv.


Most Americans are free to choose broadcast TV just as they can choose free radio.

It really isn't the sole domain of the FCC either. The FTC is also a powerful opponent to mergers that create monopolies. I can see also where there will be some friendly briefs offered from the music publishers that don't like XM's nose thumbing and wouldn't want to risk losing the money that Sirius pays for royalties.


----------



## La Push Commercial Codman (Jan 5, 2007)

There is logic to this. XM radio perform better then sirius when it comes to music. XM got rid of Nascar, shouldn't make any difference. I rather pay for a service which provide commercial free music and lack of D.J.. Instead of too much D.j. crap on Sirius. Alot of People, I heard were unhappy with Sirius and were happy with xm music. Xm hold's something. As for a possible merge, The struggle was Sirius, but cash flow must be a key thing, and Sirius was carrying big bucks for Howard Stiern. I hope A merge is not possible, since F.T.C. WILL END UP saying no to both.. It takes time to come along. 

I remember the old day, when the first DBS DirecTv receiver cost $2'500.00. It was enormious cost. And they had under 100'000 subs.. Indeed takes time for both to make it. Xm had some great award winning holiday music, far better..


----------



## packfan909 (Oct 6, 2006)

La Push Commercial Codman said:


> There is logic to this. XM radio perform better then sirius when it comes to music. XM got rid of Nascar, shouldn't make any difference. I rather pay for a service which provide commercial free music and lack of D.J.. Instead of too much D.j. crap on Sirius. Alot of People, I heard were unhappy with Sirius and were happy with xm music. Xm hold's something. As for a possible merge, The struggle was Sirius, but cash flow must be a key thing, and Sirius was carrying big bucks for Howard Stiern. I hope A merge is not possible, since F.T.C. WILL END UP saying no to both.. It takes time to come along.
> 
> I remember the old day, when the first DBS DirecTv receiver cost $2'500.00. It was enormious cost. And they had under 100'000 subs.. Indeed takes time for both to make it. Xm had some great award winning holiday music, far better..


I believe your logic is more a matter of preference. I am a Sirius Sub and have D* with the XM channels on the TV. On the popular channels (Big 80's on Sir and 80's on 8 XM) I hear similar breaks between songs. Most of the non-popular music channels just have bumpers between a few songs during the hour.

From a music standpoint, I feel that XM has a deeper catalog where Sirius sticks to more of the Radio released music. Some of the channels go deeper into an artist library.

:backtotop

Past action by the Gov't shows that this could create a Monopoly. I would be against this as we can see lack of competition for pricing. HD Radio, which is the closest competition for Satellite Radio is still a free yet Advertising rich service. I am happy with the 10-12 a month price point of the services. Being able to listen to out of market sporting events and the expanded news offerings really make this a great offering. I say keep the competition moving. There is positive cash flow within this market finally. That is usually the first sign of success. If anything it is pushing D*/E* to develop portable products. Look at the announcements of portables from CES this week.


----------



## La Push Commercial Codman (Jan 5, 2007)

packfan909 said:


> I believe your logic is more a matter of preference. I am a Sirius Sub and have D* with the XM channels on the TV. On the popular channels (Big 80's on Sir and 80's on 8 XM) I hear similar breaks between songs. Most of the non-popular music channels just have bumpers between a few songs during the hour.
> 
> From a music standpoint, I feel that XM has a deeper catalog where Sirius sticks to more of the Radio released music. Some of the channels go deeper into an artist library.
> 
> ...


 Well, I do have both Sirius And xm, I do admit music is better on xm, as for out of market sport, yes, Sirius and Xm have great out of market sports.. Sirius seems to have a cash flow, so maybe hearing those dis-satifed Sirius music listeners, not mean anything. Tables our turning, But xm will make its come back maybe. The rumor mills is been that for almost one years, but if xm music is great, alot of us will end up with two satellite radio services. Will see, I don't think neither wants that merge. It would be bad for business, and many our getting fed up with N.A.B. FREE RADIO. That tv ad shows one guy with Sirius and the other going nuts over local free commercial radio. If that guy is going nuts over free radio, there go nuts over the D.j. s on Totally 70's. If you don't want a lemon, hope Sirius changes soon. A cash flow means something, but the come back kid xm satellite radio, has it come backs, especially major league baseball, ice hockey, college sports and Indy races. Yea maybe more. I don't think merge is a thing for Neither, its a choice....


----------



## SDizzle (Jan 1, 2007)

I have 2 cars with Sirius, 1 with XM, and XM on D*. When people ask my opinion on either, since I have both, I always tell them the same thing "If you like music, go XM, if you like sports, go Sirius". I really like the ST equivalent on Sirius, that way if I'm not home, I can listen to football on Sirius, and not have to try to listen to crappy AM radio!! But, I think XM plays better "currently popular" music than Sirius. 

Just my opinion.


----------



## Araxen (Dec 18, 2005)

I have Sirius at home and in the car, and XM on Directv. I prefer Sirius music alot more than XM's. XM's music sounds like it was programmed by a robot. Sirius's music seems to be programed intelligently. If it wasn't for Howard and Jay Thomas, I believe XM would have the better talk lineup, imo. Which I think is alot more important than the music. Howard Stern proves that talk radio is what will drive sales. 

I would never live without Sat Radio ever again.


----------



## La Push Commercial Codman (Jan 5, 2007)

Araxen said:


> I have Sirius at home and in the car, and XM on Directv. I prefer Sirius music alot more than XM's. XM's music sounds like it was programmed by a robot. Sirius's music seems to be programed intelligently. If it wasn't for Howard and Jay Thomas, I believe XM would have the better talk lineup, imo. Which I think is alot more important than the music. Howard Stern proves that talk radio is what will drive sales.
> 
> I would never live without Sat Radio ever again.


 Well, James Long can hear our opinions, were selling the people for both of them.. Government could have been fair and balanced, it would been hard to determine who score better. I do know Elvis Radio and Sirius is a key thing and Sirius Gold, other wise like no d.j.s. The Sirius ad was a funny one, But I do agree satellite radio going to be a future item. Xm will be launching the heat in hd and U.S. Country in hd.. As far as I know, It a rumor about merger, Well heard that before.


----------



## Steve Mehs (Mar 21, 2002)

> Xm will be launching the heat in hd and U.S. Country in hd


Where did you hear that?


----------



## pez2002 (Dec 13, 2002)

that guy is full of S**t if that hd news was real It would have been on orbitcast.com


----------



## georgecostanza (Jan 11, 2005)

La Push Commercial Codman said:


> Well a merge was attempted with Dish and DirecTV and failed. They said this 12 months back, They say this 6 month backs and a merge, No Way. The FCC and congress doesn't want a merge. Merge will fail. Sirius has been struggling for years. Sirius was struggling and they added howard stern, help some but not enough. Sirius will end up selling out to there people.


Sirius has been struggling for years?help some, but not enough? after Howard signed his contract, Sirius went from 600,000 subscribers to over 6,000,000!!! In the same time frame, I think XM added about 2,000,000. How is that "help some"? And what do you mean "Sirius will end up selling out to there people"? What people?


----------



## La Push Commercial Codman (Jan 5, 2007)

Steve Mehs said:


> Where did you hear that?


 It's not confirmed, rather they will launch hd service to u.s.17 on xm and the heat 68 on xm. They may do it. You figure, why would xm sell out, if they can provide hd. prediction our possible.. What's the most listen too music? It has to be R.A.B. HIT MUSIC AND Country music. There's not to many.. Sirius Satellite radio, I bet will be doing, like ch 1 hit music in hd, Country music on Sirius ch 60 in hd.. There be staying in competition with each other. OFCOURSE XMFAN HAS INFO on xm hi def. Sorry, I don't have sight. www.xmfan.com. Maybe helpful


----------



## Steve Mehs (Mar 21, 2002)

There has been nothing about 17 and 68 broadcasting in XMHD on XMFan, XM411 or Orbitcast, furthermore XM does not currently have the bandwidth to dedicate to two more XMHD channels unless they cease 76 and 113 in Neural. Besides US Country is 80s and 90s country, not current country, makes no sense at all to have this in 5.1. Sirius has shown no interest in adding a few high quality 5.1 streams. Please do not make stuff up, all it does is confuse subscribers and potential subscribers.


----------



## La Push Commercial Codman (Jan 5, 2007)

flemingljr said:


> Sirius has been struggling for years?help some, but not enough? after Howard signed his contract, Sirius went from 600,000 subscribers to over 6,000,000!!! In the same time frame, I think XM added about 2,000,000. How is that "help some"? And what do you mean "Sirius will end up selling out to there people"? What people?


 I wouldn't think they sell, after I had time look into Sirius. I knew, in 2004. Sirius only had 700,000 subs. By the end of 2005, Sirius had around million in a half, so I figure, Yea Sirius had a cash flow in 2006. With Howard Stiern. So, it sound to me, like xm wants to sell out to there people for Sirius. And they might.
I don't believe they will consider those possibility. I know FTC might not allow merge. They didn't to Dish or DirecTV.. I might not have any answer, but you know, Major League Baseball keeps xm satellite radio in the driver seat for know. Howard stern was a great deal for Sirius. There cash flow will pay Howard Sterns bill. Ofcourse, I took my chances having Sirius satellite radio for life for only $359.00 .. I betcha, after 5 years or more. Sirius satellite radio, will wonder why, I got it for life. I don't know. I can't say if I answered you question, but there are possibilities, that Sirius could sell out it's people, or xm could sell out it's people. NOBODY KNOWS. I DON'T.. I do Bet the FTC WILL STOP THIS POSSIBLE MERGE, Ofcourse a merge. NO WAY.. NOT IN U.S.A., WITH RIVALS..


----------



## La Push Commercial Codman (Jan 5, 2007)

flemingljr said:


> Sirius has been struggling for years?help some, but not enough? after Howard signed his contract, Sirius went from 600,000 subscribers to over 6,000,000!!! In the same time frame, I think XM added about 2,000,000. How is that "help some"? And what do you mean "Sirius will end up selling out to there people"? What people?


 For the years, I have been fallowing satellite radio. Indeed, Sirius has put up some big numbers. But has Sirius taken some number down, due to dj talking over the music. I did not pay for it, that what people are saying about Sirius. They talk over a cold end. They talk over a cold beginning of a track. If djs are not what your paying for. Then geuss what, your switching to xm radio. I figure, why sell out to people. There is nobody to sell out except our selves. Xm and Sirius our rivals. xm radio is a different company, which will still stay in business to provide xm service. Mean while Sirius is also in business to provide service. Both these companies have no need to merge. Sirius a for a change a profit flow, meaning to have a ton of doh to pay Howard Stern, in back payment and they have Nascar. If Howard Stern decides to retire, people will either keep the service, or go back to local free radio. By all means, I believe a merge would be not permitted, and there our almost 9 million xm subs, who do not like Howard Stern, who may just go back to local hd radio. If Sirius was to buy xm, they would have a problem. Noticing Howard Sterns indecency... I do receive Sirius satellite radio for life at $359.00 one time fee, upto 10 years, 20 years of Sirius. Hey, I would be upset if Sirius sold out to me. I paid $359.00 for life. But then I also have xm radio, and I paid $399.00 for 5 years..


----------



## pez2002 (Dec 13, 2002)

I listend to alt nation last year in a video Arcade in wildwood nj And the dj would not shut up Im glad the djs on ethel dont talk all the time 
But i prefer Lucy xm 54


----------



## La Push Commercial Codman (Jan 5, 2007)

Prior to a press release from sky report. Agreement was made in 1997, that xm and sirius would not merge. These companies were to stay in business to provide competition, just like Dish Network and DirecTV. If you think, A merge was to happen, I betcha you, everybody would wonder if they were getting a good price. 

Many do dislike paying more, but if a merger happens, then you upsetting 600'000 to a 6 million subs. 6 million xm radio subs wouldn't want sirius satellite radio, and 6 million Sirius satellite radio subs wouldn't want xm satellite radio. 

The FCC chair Kevin Martin, will say to both of them if you can't do it, then sell to a corperate business. Both xm and Sirius have no idea, who they may make un-happy.


----------



## GreatPig (Sep 19, 2006)

News report today are that the deal would be announced today and everything finished by mid 2008.


----------



## Staszek (Nov 13, 2006)

La Push Commercial Codman said:


> There is logic to this. XM radio perform better then sirius when it comes to music. XM got rid of Nascar, shouldn't make any difference. I rather pay for a service which provide commercial free music and lack of D.J.. Instead of too much D.j. crap on Sirius. Alot of People, I heard were unhappy with Sirius and were happy with xm music. Xm hold's something. As for a possible merge, The struggle was Sirius, but cash flow must be a key thing, and Sirius was carrying big bucks for Howard Stiern. I hope A merge is not possible, since F.T.C. WILL END UP saying no to both.. It takes time to come along.
> 
> I remember the old day, when the first DBS DirecTv receiver cost $2'500.00. It was enormious cost. And they had under 100'000 subs.. Indeed takes time for both to make it. Xm had some great award winning holiday music, far better..


I am not sure what channels you listen to but there really isnt much DJ talk on Sirius, they have bumpers every once in a while but thats about it unless you are listening to stern which is a talk station.

I have both XM and Sirius and I dont like the music programming at all on XM. Infact most of the people who come to my house would rather listen to Sirius so I got a receiver for inside the house too. I know there are some good XM stations but the popular ones dont match up at as well.

As for quality of the two broadcast wise they are very close now Sirius definitely was not as good at the beginning but its pretty hard to tell the difference now.

Lastly the way I am looking at it, Sirius has momentum and XM doesnt, there is 1.9 million difference in subscribers in an industry where XM had a huge headstart and still has more installs available in cars and home theater receivers. I think both companies were treading thin, but I think XM was more desperate then Sirius on this one.

Usually you dont let the CEO of the weaker company run the whole show after a merger. Just my opinion.


----------



## Nick (Apr 23, 2002)

> February 20, 2007
> 
> Dear XM Radio Subscriber:
> 
> ...


..


----------

