Getbig.com: American Bodybuilding, Fitness and Figure
Getbig Main Boards => Gossip & Opinions => Topic started by: thisiskeith12 on March 24, 2008, 01:16:19 PM
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I bought 200 shares of Sirius stock 2 years ago...
http://www.bloomberg.com/apps/news?pid=20601087&sid=arnph2mlNDqY&refer=home
XM Satellite, Sirius Combination Approved at Justice (Update4)
By Don Jeffrey and James Rowley
Enlarge Image/Details
March 24 (Bloomberg) -- Sirius Satellite Radio Inc.'s proposed acquisition of XM Satellite Radio Holdings Inc. won U.S. antitrust clearance to create a single U.S. satellite-radio provider. Shares of both companies surged.
The Justice Department, in approving the deal, said the combined company won't be able to raise prices profitably because of competition from such forms of audio entertainment as broadcast radio and MP3 players.
``We just simply found the evidence did not support a challenge to the transaction under the antitrust laws,'' Thomas Barnett, the Justice Department's antitrust chief, told reporters. There wasn't enough evidence the merger ``would substantially lessen competition or harm consumers,'' he said.
The companies are still awaiting approval by the Federal Communications Commission. FCC Chairman Kevin Martin signaled March 20 that the agency is close to a decision, telling reporters he had asked its staff to draft ``various options.'' The commission ``is looking at it,'' FCC spokeswoman Mary Diamond said today.
XM Satellite Radio rose 15.5 percent, or $1.85, to $13.79 as of 4 p.m. New York time in composite Nasdaq Stock Market trading. Sirius rose 8.6 percent, or 25 cents, to $3.15.
The companies proposed the combination to stem billions of dollars in losses incurred in attracting talent, sports deals and subscribers and to reach profitability sooner than they could on their own. Sirius, based in New York, features Howard Stern and Nascar and has 7.67 million subscribers. Washington-based XM, with Oprah Winfrey and Major League Baseball, has 8.57 million.
Fraction of Audience
``They still have only a fraction of the broadcast audience,'' James Goss, an analyst with Barrington Research in Chicago, said in an interview before the decision. ``On a combined basis their strength is in creating a more efficient business model by not having duplicate costs and not having consumers being forced to choose one or the other.''
Goss and fellow analyst April Horace of Janco Partner in Greenwood Village, Colorado, predicted today the FCC will clear the deal.
``I think the biggest hurdle'' was the Justice Department, said Horace, who recommends buying XM and holding Sirius. Goss rates XM ``market perform'' and Sirius ``outperform'' and doesn't own either stock.
Different Prices
Sirius and XM offered to package programming at different prices to win the support of commissioners. Martin supports a la carte pricing for the cable television industry. Sirius and XM subscribers, who now pay $12.95 a month, may pay as little as $6.99 with the proposed tiered pricing.
The deal was opposed by the National Association of Broadcasters, the trade group that represents free radio stations and waged a lobbying campaign in Congress and at the FCC. The broadcasters' group argued the merger created a pay-radio monopoly.
``We are very disappointed'' by the Justice Department decision, said Senator Herb Kohl, a Wisconsin Democrat. The deal ``will create a satellite radio monopoly,'' he said.
The companies filed documents with the FCC showing support from groups such as the National Association for the Advancement of Colored People and individuals including former FCC Commissioner Reed Hundt, who oversaw the development of rules for satellite radio and granted Sirius and XM their licenses.
Shareholders of the two companies approved the combination in separate special meetings Nov. 13. More than 96 percent of those who voted approved the transaction.
Sirius Chief Executive Officer Mel Karmazin will be CEO of the combined company. XM Chairman Gary Parsons will be chairman. Former XM CEO Hugh Panero resigned during the summer. Nate Davis is the current CEO and a decision about his role in the new company hasn't been made public.
The combined company will eliminate programming that is duplicative, including some music channels.
To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net
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``We are very disappointed'' by the Justice Department decision, said Senator Herb Kohl, a Wisconsin Democrat. The deal ``will create a satellite radio monopoly,'' he said.
I know a guy who says monopolies are great for athletes!
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Dude, I got this on my Musclephone last week.
Musclephone: It knows the Future
Thanks Musclephone!
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are monopolies illegal
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I had monopoly once.
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I bought 200 shares of Sirius stock 2 years ago...
What did you pay, $5? $6? The balance sheets of BOTH Sirius and XM are about as stable as Lee Priest's mind. If you get a price bounce out of this at all, you should sell and run like hell.
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Dude, I got this on my Musclephone last week.
Musclephone: It knows the Future
Thanks Musclephone!
I quit taking the easy shots.
What did you pay, $5? $6? The balance sheets of BOTH Sirius and XM are about as stable as Lee Priest's mind. If you get a price bounce out of this at all, you should sell and run like hell.
I bought it at around $2 a share. It hasn't done much since. Now it's at just over $3 a share. XM is around $13 a share.
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I bought it at around $2 a share. It hasn't done much since. Now it's at just over $3 a share. XM is around $13 a share.
I think you've had it longer than just two years then. Either way, the advice still stands.
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XMSR was my first short. Saw it sitting in the 30's and wondered what everyone was seeing in it.
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I quit taking the easy shots.
I bought it at around $2 a share. It hasn't done much since. Now it's at just over $3 a share. XM is around $13 a share.
Those aren't "shots" -- it's called "internet marketing".
Pssst...Special Ed actually works for Musclephone!
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I think you've had it longer than just two years then. Either way, the advice still stands.
Yeah I bought it in 2004. I just talked to my dad who is a former stock broker, he says the price won't budge until the merger goes through and how successful they are after the merger. I'm still a little confused and he said he'd explain it later. He's not a fan of it and went against me buying their stock when I did.
Those aren't "shots" -- it's called "internet marketing".
Pssst...Special Ed actually works for Musclephone!
Don't tell us how he pays you!
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Those aren't "shots" -- it's called "internet marketing".
Pssst...Special Ed actually works for Musclephone!
Why are you jealous of Lift? Lift is a very nice man. ???
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Will this merger help make bodybuilding main stream? How about Olympics?
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Yeah I bought it in 2004. I just talked to my dad who is a former stock broker, he says the price won't budge until the merger goes through and how successful they are after the merger. I'm still a little confused and he said he'd explain it later. He's not a fan of it and went against me buying their stock when I did.
Neither company has ever made money. Both have balance sheets with negative equity. Oh... and they both have a shitload of debt too. The merger will solve none of these problems, as they're both in the same sinking ship.
Run, Keith, run! ;D
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The merger will solve none of these problems, as they're both in the same sinking ship.
..Because the government took nearly 2 years to approve the merge.
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are monopolies illegal
They are under the Sherman Anti-Trust laws and this deal should NOT have been approved.
But big business and $$$ talks in America today.
Now watch, service will go down and price will go up >:(
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Neither company has ever made money. Both have balance sheets with negative equity. Oh... and they both have a shitload of debt too. The merger will solve none of these problems, as they're both in the same sinking ship.
Run, Keith, run! ;D
Howard Stern brought in so much business to SIRIUS that he received a huge bonus-are you sure SIRIUS is not cash flowing???
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Ha ha, Clear Channel owns like 15 commercial stations on the satellite radio system. Bane just bought Clear Channel, btw.
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Howard Stern brought in so much business to SIRIUS that he received a huge bonus-are you sure SIRIUS is not cash flowing???
they spent a shit load on the employees and technology.
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I know a guy who says monopolies are great for athletes!
Great for bbers too!
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they spent a shit load on the employees and technology.
Yeah, but tech is a one time upfront cost which can offset income by depreciation.
I find it hard to believe they don't make a profit-but I don't know one way or the other.
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'XM's subscriber-acquisition cost, which includes such things as advertising and discounts on hardware, was $89 per customer, compared to $64 per customer during the fourth quarter of 2004.
"We expect [spending] to drop sharply in the first quarter as we scale back media spending and hardware discounts," Joseph Euteneur, the company's chief financial officer, said during the call, calling the expenses "abnormally high."
Sirius, however, spent even more than XM to gain subscribers, spending $113 per subscriber during the fourth quarter. But the number actually reflected a decrease from the previous year, when Sirius was spending $124 per subscriber during fourth-quarter 2004.'
http://www.space.com/spacenews/archive06/XM_022006.html
the subscription is $13 a month, so they were spending 20-30 a month broken down for each subscriber. :o
Howard stern's show costing $500 million doesn't help.
http://money.cnn.com/2008/06/26/technology/moritz_sirius.fortune/index.htm?postversion=2008070109
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'XM's subscriber-acquisition cost, which includes such things as advertising and discounts on hardware, was $89 per customer, compared to $64 per customer during the fourth quarter of 2004.
"We expect [spending] to drop sharply in the first quarter as we scale back media spending and hardware discounts," Joseph Euteneur, the company's chief financial officer, said during the call, calling the expenses "abnormally high."
Sirius, however, spent even more than XM to gain subscribers, spending $113 per subscriber during the fourth quarter. But the number actually reflected a decrease from the previous year, when Sirius was spending $124 per subscriber during fourth-quarter 2004.'
http://www.space.com/spacenews/archive06/XM_022006.html
the subscription is $13 a month, so they were spending 20-30 a month broken down for each subscriber. :o
Howard stern's show costing $500 million doesn't help.
Holy FUCK! What are those idiots thinking????
Reminds me of how Government spends money on ballparks and stadiums......big bucks - low/little return.
They'll never make miney with that type of business model......
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Ha ha, Clear Channel owns like 15 commercial stations on the satellite radio system. Bane just bought Clear Channel, btw.
www.espn.am ;)