XM Radio merging with Sirius Radio - BMW Luxury Touring Community
 
LinkBack Thread Tools Display Modes
post #1 of 12 Old Feb 20th, 2007, 6:30 pm Thread Starter
Member
 
Tomakazie's Avatar
 
Join Date: Dec 2005
Location: Albuquerque, NM, USA
Posts: 92
XM Radio merging with Sirius Radio

Hot off the press

February 20, 2007

Dear XM Radio Subscriber:

We want to share with you some exciting news: Yesterday, in Washington DC, we announced
XM Radio will be merging with Sirius Satellite Radio to form the premier digital audio
service.

The merger will create a satellite radio company that will provide consumers across the
country with more and better premium radio programming. The combined company will be able
to compete better in what has become a very complex and dynamic entertainment market.

Where today our exclusive contracts mean you had to choose between baseball and football
or Oprah and Martha Stewart, the new company will seek to ensure that in the future, you
will be able to access both companies' programming. And, once we are fully integrated,
those of you who have factory-installed satellite radio will no longer be limited to the
programming provided by the exclusive satellite radio service chosen by their car
manufacturer.

This merger should be completed in late 2007 or early in 2008. Throughout the year, we
will provide updates on how the merger is progressing and information will be available at
our website, www.xmradio.com.

Between today and the merger date, as well as during the period immediately after the
merger date, all of your services will remain the same. The channel lineup, the customer
service number, the great music technology, and the XM Radio web site will all remain
unchanged and there will be no disruption to service. But, if you have questions,
information will be available and maintained on our website, and you can contact our
Listener Care team at 800-XMRADIO, with questions and concerns.

XM Radio continues to be committed to providing you the highest quality audio
entertainment and customer service available today. After the merger, our new company
will be able to offer you the most exciting listening experience in radio.

Sincerely,

Hugh Panero
CEO, XM Satellite Radio

Tom & Donna
2006 BMW K1200LT
Unigo Trailer
Albuquerque, New Mexico

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Tomakazie is offline  
Sponsored Links
Advertisement
 
post #2 of 12 Old Feb 20th, 2007, 6:46 pm
Senior Member
 
Josmas's Avatar
 
Join Date: Jun 2006
Location: , NH, USA
Posts: 176
It's a long-shot that this will get FTC approval. Dish Network and Direct TV tried this 5-6 years ago and the FTC shot it down due to a violation of ant-trust laws. The merger would form a monopoly for satellite radio, but XM and Sirius's argument will be that they compete with all digital radio formats, including Ipod, HD radio, and CDs.
I hope it goes through... I'm a stockholder!

Joe
2005 BMW K1200LT
2007 Ducati Monster S4Rs
Josmas is offline  
post #3 of 12 Old Feb 20th, 2007, 7:06 pm
Senior Member
 
RVB1019's Avatar
 
Join Date: Jan 2005
Location: Long Island , NY, USA
Posts: 1,733
Garage
As a Sirius Subscriber, I got the same exact email except instead of XM slant, it was Sirius.

Mine was from Uncle Mel Karminzin.

Rob V.B.
2015 Triumph Explorer 1200
2007 BMW GT (SOLD)
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

2003 BMW LT (SOLD)
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

2002 BMW R1150 traded for 2002 Yamaha FZ1 traded for a 2003 GSXR 750

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.



To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
RVB1019 is offline  
 
post #4 of 12 Old Feb 20th, 2007, 7:16 pm
Gold Supporter
 
Lonewuff's Avatar
 
Join Date: Jun 2006
Location: Magnolia, TX, USA
Posts: 3,872
Wonder just what they meant by this:

"those of you who have factory-installed satellite radio will no longer be limited"

Jerry
Look in the wolf's eyes and what do you see--A guardian spirit or fierce enemy?
2008 FLHTCU White Pearl

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Lonewuff is offline  
post #5 of 12 Old Feb 20th, 2007, 7:40 pm
Senior Member
 
strsout's Avatar
 
Join Date: Jun 2002
Location: Loma Linda, CA, USA
Posts: 2,364
Quote:
Originally Posted by Josmas
It's a long-shot that this will get FTC approval. Dish Network and Direct TV tried this 5-6 years ago and the FTC shot it down due to a violation of ant-trust laws. The merger would form a monopoly for satellite radio, but XM and Sirius's argument will be that they compete with all digital radio formats, including Ipod, HD radio, and CDs.
I hope it goes through... I'm a stockholder!

I'm stockholder too, but my guess I'm on the wrong side...
Normally when it happens, the buyer goes down a bit and the sold goes up good.... today wasn't like that:
XM Satellite rose $1.43, or 10.2 percent, to $15.41, and Sirius Satellite rose 22 cents, or 6 percent, to $3.92.

--------------------------------
Elton 'StrsOut' Marks '02 Silver-Member #337 (or 287?)

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

2002 LT - 62,394 miles as of 08/05/2007
2003 GS - 20,960 miles as of 07/11/2008
Loma Linda - CA
IBA#14,458 - AMA


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
strsout is offline  
post #6 of 12 Old Feb 20th, 2007, 7:51 pm
Senior Member
 
Josmas's Avatar
 
Join Date: Jun 2006
Location: , NH, USA
Posts: 176
I think the buy-out is $17.00 a share.
With only one satellite option available (if the merger goes through) I would think in the long term this would be good, especially since their subscriber base would more than double overnight... very attractive to advertisers.

Joe
2005 BMW K1200LT
2007 Ducati Monster S4Rs
Josmas is offline  
post #7 of 12 Old Feb 20th, 2007, 7:54 pm
Just ridin'
 
Randy's Avatar
 
Join Date: Apr 2002
Location: Aurora, CO, USA
Posts: 5,294
Quote:
Originally Posted by Lonewuff
Wonder just what they meant by this:

"those of you who have factory-installed satellite radio will no longer be limited"
In their webcast this morning they said they are committed to maintaining the full constellation of satellites for both companies. They will continue to broadcast to hardware that supports either service, but will consolidate programming. This means that your current receiver will continue to operate, but when the merger is completed the same programming will be broadcast to both sets of hardware for the foreseeable future. They do not want to lose any of the current subscriber base by making any equipment obsolete. In the long term, to cut costs, there will likely be dual mode radios and an eventual retirement of one of the satellite constellations.

Randy Prade
Aurora, CO

Just ride it!
Meet Riley

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.



To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Randy is offline  
post #8 of 12 Old Feb 20th, 2007, 7:55 pm
Senior Member
 
strsout's Avatar
 
Join Date: Jun 2002
Location: Loma Linda, CA, USA
Posts: 2,364
Quote:
Originally Posted by Josmas
I think the buy-out is $17.00 a share.
With only one satellite option available (if the merger goes through) I would think in the long term this would be good, especially since their subscriber base would more than double overnight... very attractive to advertisers.
I could not find that information about the buy-out price...
If it's $17 then it's a great price, but don't you think it is quite high? the sirius shares once toped $9.00 and then was just down-hill.
Also, for todays market reaction, I'm not sure if it will get $10.00 by the 12 months they announced for the sale...

--------------------------------
Elton 'StrsOut' Marks '02 Silver-Member #337 (or 287?)

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

2002 LT - 62,394 miles as of 08/05/2007
2003 GS - 20,960 miles as of 07/11/2008
Loma Linda - CA
IBA#14,458 - AMA


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
strsout is offline  
post #9 of 12 Old Feb 20th, 2007, 8:17 pm
Senior Member
 
Josmas's Avatar
 
Join Date: Jun 2006
Location: , NH, USA
Posts: 176
This from Marketwatch:
"Under the terms of the agreement, XM shareholders will receive a fixed exchange ratio of 4.6 shares of Sirius common stock for each share of XM they own. XM and Sirius shareholders will each own approximately 50 percent of the combined company."

Sirius closed at $3.92 today. X4.6 =$18.032

Joe
2005 BMW K1200LT
2007 Ducati Monster S4Rs
Josmas is offline  
post #10 of 12 Old Feb 20th, 2007, 8:17 pm
Senior Member
 
hybridcage's Avatar
 
Join Date: Jul 2002
Location: Hiddenite, NC, USA
Posts: 151
Hope it woks out for the consumer

I've had Sirius for several years. I hope that I can reap the benefits of gaining XM. I personally enjoyed "air america" and lost it, and later one of my favorite programs to XM. I have always been jealous of MLB being on XM, so maybe I can listen to Skip, Chip and the others on braves broadcasts.

The release I saw said subscribers can choose "a la carte" as to what channels they have, I feel this is corporate speak for charging me more--hope not.

Chris

Hiddenite NC

'99 LTi Champagne

GTHC
hybridcage is offline  
post #11 of 12 Old Feb 20th, 2007, 8:53 pm
Senior Member
 
strsout's Avatar
 
Join Date: Jun 2002
Location: Loma Linda, CA, USA
Posts: 2,364
Quote:
Originally Posted by Josmas
This from Marketwatch:
"Under the terms of the agreement, XM shareholders will receive a fixed exchange ratio of 4.6 shares of Sirius common stock for each share of XM they own. XM and Sirius shareholders will each own approximately 50 percent of the combined company."

Sirius closed at $3.92 today. X4.6 =$18.032

I read that different... Please correct me if I'm wrong:
XM Shareholders will get Siruios stock. For me it means:
XM $15.41 will get 4.6 sirius at $3.92 = $18.032 that means XM will grow 17%

At that price, if you have Sirius, your share will worth $3.91 (18.032/4.6).

Am I right?
I'm seeing it from the view of a Sirius shareholder.

--------------------------------
Elton 'StrsOut' Marks '02 Silver-Member #337 (or 287?)

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

2002 LT - 62,394 miles as of 08/05/2007
2003 GS - 20,960 miles as of 07/11/2008
Loma Linda - CA
IBA#14,458 - AMA


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
strsout is offline  
post #12 of 12 Old Feb 21st, 2007, 8:12 am
Senior Member
 
Josmas's Avatar
 
Join Date: Jun 2006
Location: , NH, USA
Posts: 176
I'm sure there is someone on the board that is more experienced in the stock market than I am who could answer these questions more clearly.

The way I understand it is, for each share of XM that you own, you would receive 4.6 shares of Sirius stock. Based on yesterday's close, that would be worth $18.032 worth of Sirius/share of XM.
I believe that the Sirius shares that we own will only be effected by regular market fluctuations.
The question is, how many outstanding shares are there of Sirius and will they need to do a split to provide enough to shares to replace each XM share x4.6?

Joe
2005 BMW K1200LT
2007 Ducati Monster S4Rs
Josmas is offline  
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the BMW Luxury Touring Community forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Similar Threads
Thread Thread Starter Forum Replies Last Post
XM or Sirius Satellite Radio Tomakazie Satellite Radio 6 Dec 27th, 2006 3:29 pm
Moving GPS XM radio between locations djbroughton GPS 7 Oct 18th, 2006 2:55 pm
Sirius Radio on the LT JMMRoad Satellite Radio 8 Jun 18th, 2006 11:10 pm
Question for MyFi XM Radio users??? Portguyofva Satellite Radio 4 Mar 9th, 2006 8:46 pm
XM or Sirius Wipedout Satellite Radio 20 Feb 18th, 2006 12:31 pm

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome