DEBT! DEBT! And mulitple interests payments on re-issued, re-financed, levererged this and that, even Mel's starched collars. I love the products, but from an investment or trader standpoint, this is the Lehman Bros of media.
Mr. Mel has quite a few million shares to protect and pump up the price, but only spectacular feats like Howard "The Ulimate" Pig can move subscriptions. The merger, though, will with accounting miracles, up the optioned value of his shares, then, he can begin the systematic sell.
Before Sirius had Stern, they were about 10% of XM subs. The price? Only Howard "The wh*re pig" danced and laughed. And remember the ungodly number of shares given to stern for sub numbers met. Again, debt.
The combined company will fail and file bankruptcy. Those beyond the trader run-up and fizzle, those who see great "upside", will be empty bag holders when this company symbol ends with Q, bankruptcy.
3 Strikes you're out:
1) retail confusion=destruction for both consumers and retail sales personnel
2)XM=GM/Siri=Ford and Chrysler:
The death of giants
3) Economy: discretionary spending
** All the other media devices killing sub growth.
XM had strong institution support; Sirius never did. Now, combined with toxic debt, the company will be in full financial alert/demise within 2 years.
Disclosure: I did pioneering marketing/promotion work for XM
What's a matter.....Did ya get laid off?
Think with all your knowlege, you will be a auto-hire for Goldman Sux...They will be needing some help in the marketing after the last "lets throw SIRI under the bus" post...
Sorry, but I do not agree!
Yeah, almost 2-Billion in annual revenue immediately, and a total debt-load of roughly 2.9-Billion, with a nice 20-million base to launch a merged satellite-radio Co.; Won't happen over-night, but that's a balance-sheet that can turn profitable with the right moves!