Good question hedge, hopefully someone with the knowledge can enlighten us.
December 5, 2013
08:05 EDT V, MA Visa shares have reached attractive entry point, says Stifel
Stifel continues to have great confidence in Visa (V), and the firm expects its discount to MasterCard (MA) to close. The firm continues to be bullish on both stocks and keeps Buy ratings on both of them. Visa remains on Stifel's Select List.
I wrote in a previous article about how Sirius XM (SIRI) will face off with GM's OnStar service in the near future as both companies compete for the same customers and begin offering similar services. As I see it, a strategic partnership or merger with GM's (GM) OnStar would be an ideal outcome and would instantly propel Sirius XM into a huge dominant leadership position within the industry. Despite the importance of OnStar to GM's business strategy of the future, the only real way for the service to become ubiquitous is for OnStar to operate as a separate company from GM. The conflict of interest represented by GM's ownership in the company far outweigh the benefits that other vehicle manufacturers would derive from installing the service. This has and will continue to hamper OnStar's growth.
While a deal between Sirius XM and OnStar has not been actively discussed in the media, it would be a blockbuster occurrence and there is actually some indications that it might be a future possibility for both companies.
Liberty Buys OnStar - Liberty Media (LMCA), a company with far greater financial capacity than Sirius XM could purchase OnStar and integrate the service into their current offerings. Liberty already has de facto control over Sirius XM and if it were to control OnStar too, it could easily integrate the services and drive subscriber growth. The two companies are definitely more valuable as a combined entity and Liberty Media could use their expertise in subscription based business models to drive the value higher than anybody anticipates. Integrating OnStar with Sirius XM would provide a huge boost to shareholders and dramatically increase the value of the combined company. After combining the two companies, Liberty would still be free to spin off the entity, as many shareholders presume, using a Reverse Morris Trust process.
Sirius XM and OnStar are going to be facing off soon, as the business models of both companies converge and they fight over the same market. Rather than entering a long and expensive battle, the two companies would be best served by either merging or forming a strategic partnership. Together, the two companies would form a telematics and entertainment behemoth and see massive growth in the coming connected car revolution. Liberty Media could also get involved to facilitate the merger. Shareholders on all sides would benefit and Sirius XM's share price would get a huge boost.
U must be getting free cell phone, food stamps, and free bees and don't want to work. ...