HIP HOP LIFESTYLE

Announcement

Collapse
No announcement yet.

Feb 19 - SIRIUS, XM SET TO CONFIRM MERGER PLAN TODAY

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Feb 19 - SIRIUS, XM SET TO CONFIRM MERGER PLAN TODAY



    HEAVENLY DEAL

    By PETER LAURIA

    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.

    Combining Sirius and XM would result in a single satellite radio operator with more than 12 million total subscribers. A deal would also marry Sirius content, such as Howard Stern, Frank Sinatra and Nascar with XM's Oprah Winfrey, Bob Dylan and Major League Baseball.

    More important, analysts widely predict that a deal would also save the two companies nearly $7 billion annually.

    Karmazin and Parsons have been dropping hints since last summer about a possible tie-up, believing that competition from terrestrial radio, online radio and mobile music devices such as iPods have not only expanded the marketplace but also lowered the regulatory hurdles to a deal.
    In a note on Friday, Bear Stearns analyst Robert Peck speculated that Sirius and XM needed to move quickly before their window of opportunity closed.
    Gaining regulatory approval "could take up to 15 months; hence, we think any proposed deal needs to be announced by the end of March to close by mid-2008," Peck wrote.

    On Friday, XM shares hit their lowest point since early November while Sirius shares were approaching 52-week lows. Shares in both companies did trade on heavy volume and ended the session higher, with Sirius gaining 10 cents to close at $3.70 and XM jumping a dollar to $13.98.

    SOURCE

  • #2
    Good news for Sirius which has been in financial woes since its inception.
    “Dream as if you'll live forever, live as if you'll die today.” - James Dean

    Comment


    • #3
      Monopoly, trust bustem!

      Comment


      • #4
        this had to happen

        Comment


        • #5
          So my XM radio will have all the Sirius channels now?

          Comment


          • #6
            http://www.nytimes.com/aponline/busi...=1&oref=slogin

            XM and Sirius Satellite Radio to Merge

            * Sign In to E-Mail or Save This
            * Print

            Article Tools Sponsored By
            By THE ASSOCIATED PRESS
            Published: February 19, 2007

            Filed at 4:14 p.m. ET

            NEW YORK (AP) -- XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. have agreed to merge, the two companies said Monday.

            The deal would consolidate the only two companies in the emerging business of subscription-only satellite radio, and is sure to face tough scrutiny from federal regulators. Investors and analysts have been speculating about a deal for months.

            The two companies said in a statement that Mel Karmazin, the CEO of Sirius, would become chief executive of the new company while Gary Parsons, the chairman of XM, would remain in that role. XM's CEO Hugh Panero will remain to oversee closing the of the deal, they said.

            The deal would face significant regulatory hurdles in Washington, including a Federal Communications Commission rule that clearly states that one satellite radio provider cannot buy the other one. However, that rule could be waived.

            A combination would also have to meet antitrust approval from the Department of Justice. The companies are expected to argue that they compete not only with each other but also with a growing base of digital audio sources such as iPods, mobile phones, and non-satellite digital radio.

            XM and Sirius have both posted significant financial losses as they built up their programming lineups and recruited subscribers. Both stocks declined more than 40 percent last year on concerns about their continued growth in subscribers and softness in the retail market, but investors have held out hopes that a merger could bring costs down significantly.

            Shareholders of XM and Sirius would each own approximately 50 percent of the combined company. XM shareholders would receive 4.6 shares of Sirius stock for each share of XM they own.

            That would value XM shares at $17.02 each, based on Friday's closing prices, representing a premium of 22 percent from XM's closing value of $13.98 Friday. Markets were closed Monday for the Presidents' Day holiday.

            The companies didn't say what the new company would be called, though they described it as a merger of equals. The new company's board will have 12 members, including Parsons, Karmazin, four independent directors named by each company, and one representative each from General Motors Corp. and Honda Motor Co.

            News of a possible merger was reported earlier Monday by the New York Post.

            On Friday, a Bear Stearns analyst said in a research note that a merger would have a good chance of overcoming regulatory obstacles.

            Other analysts remain less sure. Sanford C. Bernstein analyst Craig Moffett said he gives the deal a ''50-50'' chance of passing regulatory muster.

            Moffett said the deal could have a particularly tough time getting through the FCC, and is likely to opposed by the National Association of Broadcasters, a lobbying group that includes radio broadcasters. Moffett said it was ''anyone's guess'' as to whether the FCC would change its rule barring a consolidation of the two satellite radio companies.
            .

            Comment


            • #7
              good shit........more channels

              Comment


              • #8
                Should be a good deal for everyone as long as Karmazin will be CEO. It could take satellite radio to the next level. I hope the FCC will approve.

                Comment


                • #9

                  Thanks . I didn't really believe it this morning when the NY Post was the only news outlet reporting the story. Turns out they had an amazing source on one of the biggest business stories of the year.

                  Comment


                  • #10
                    Yeah, nothing's set in stone until the merger gets approved, which will take well into the end of this year at the earliest. My 1 year subscription to Sirius ends in September, so before re-upping, i'll see what happens with these two.

                    Comment


                    • #11
                      sweet. as long as i still have Howard its all good. i do think Mel should run the company but oh well.

                      Comment


                      • #12
                        Originally posted by Tash226 View Post
                        Yeah, nothing's set in stone until the merger gets approved, which will take well into the end of this year at the earliest. My 1 year subscription to Sirius ends in September, so before re-upping, i'll see what happens with these two.
                        I saw one article that said it could be as long as 18 months before final approval ...

                        Comment


                        • #13
                          As long as the Sirius stations I listen to know get to stay I will be happy (or at least the DJ's, like Rude Jude & Lord Sear) I have been a Sirius subscriber for 3 1/2 years now, and haven't listen to regular radio since, so as long as this doesn't mess anything up that I currently like listening to I am all for it.

                          But last month one of the FCC people said it would be really hard to get this approved, but anything could change.
                          Last edited by Instigator187; 02-19-2007, 06:37 PM.

                          Comment


                          • #14
                            The Gov't Most Likely Wont Let It Happen, And If They Do... XM/Sirius Can Charge Subscribers Whatever They Wish Then With No Competition.
                            If The Truth Is Told, The Youth Can Grow And Learn To Survive Until They Gain Control, Nobody Says You Have To Be Gangstas, Hoes, Read More, Learn More Change The Globe.

                            Comment


                            • #15
                              Originally posted by Lazy Mikey View Post
                              The Gov't Most Likely Wont Let It Happen, And If They Do... XM/Sirius Can Charge Subscribers Whatever They Wish Then With No Competition.
                              Yes this is true, but neither company is pulling a profit...both are over spending on their programming to try to out do one another. If they can prove that the only way they can survive to to merge (and still keep pricing fair), they will let it happen....but it will take alot to prove that, that is why the experts are only giving it a 50-50 chance.

                              Comment

                              Post ad widget 300x250

                              Collapse

                              LATEST POSTS

                              Collapse

                              Topics Statistics Last Post
                              Started by Monret, Today, 03:10 PM
                              0 responses
                              2 views
                              0 likes
                              Last Post Monret
                              by Monret
                               
                              Started by touhidfiver1, Today, 06:45 AM
                              0 responses
                              1 view
                              0 likes
                              Last Post touhidfiver1  
                              Started by ketoextremeca, Today, 03:44 AM
                              0 responses
                              2 views
                              0 likes
                              Last Post ketoextremeca  
                              Started by ketoextremeca, Today, 03:42 AM
                              0 responses
                              2 views
                              0 likes
                              Last Post ketoextremeca  
                              Started by Deborahlanker, 10-23-2020, 08:14 AM
                              1 response
                              6 views
                              0 likes
                              Last Post Ppanduss  
                              Started by Deborahlanker, 07-03-2020, 05:40 AM
                              2 responses
                              10 views
                              0 likes
                              Last Post Hivesd.com  
                              Started by touhidfiver1, Yesterday, 06:51 AM
                              0 responses
                              5 views
                              0 likes
                              Last Post touhidfiver1  
                              Started by EcclesCarolyn, Yesterday, 03:42 AM
                              0 responses
                              2 views
                              0 likes
                              Last Post EcclesCarolyn  
                              Started by ketonutritio, Yesterday, 03:18 AM
                              0 responses
                              5 views
                              0 likes
                              Last Post ketonutritio  
                              Started by ketonutritio, Yesterday, 03:17 AM
                              0 responses
                              4 views
                              0 likes
                              Last Post ketonutritio  
                              Working...
                              X