There’s been news of possible merger between sirius and xm satellite radio.
Anyone have an opinion on this? Is it good for the stock, for the industry in general, etc?
[quote=“Jack Burton”]There’s been news of possible merger between sirius and xm satellite radio.
Anyone have an opinion on this? Is it good for the stock, for the industry in general, etc?[/quote]
Sirius was the first online stock I ever bought, sold and made money on. I prefer they remain in competition with XM, as a) they have a better product, and b) they have 2 satellites doing a figure 8 up thar.
The quality of the programming is pretty good, and reception is usually clear anywhere in the USA.
I don’t like monopolies, but for this particular bidness, because of the enormous costs just getting the ball rolling, better they combine and both live than die off one by one.
Sorry, I didn’t say anything about the possible stock price. Combining these two companies will make two large debts one giant debt. They both owe a HELL of a lot of money. I imagine they will swap a 1 for 1 stock trade and run under an XMSirius banner. The stock price will probably float where it is or sink a bit.
These two companies were great investments way back when when they were under a buck. But now? Eh.
Wouldn’t purchase a stock like this because of a merger. It’ll take a long time for the synergies to work, in the short term, the price will likely ride up on the news, then drop on the deal completion.
After that it’ll be ages before you see anything positive. AOL is a classic example of this happening. Chrysler/Daimler, too. Mergers spell short term stagnation.
Kenneth