Sean in CA

The Sirius/XM Disaster: The Ashes of the FCC

Oh. Was I supposed to say "Bump"?



BUMP!

The Sirius/XM Disaster: The Ashes of the FCC

Debt, schmedt... I was going on actual quality of the services provided. XM was way ahead in virtually every meaningful category, so any gain against them would come at a steep cost. Sirius saw the road ahead and made an offer to XM. Sure, they absorbed debt by doing so, but that substantial debt would have been a drop in the ocean compared to the cost of continuing the battle against XM in the marketplace. I guess the plan was to direct that revenue toward innovation in equipment and services, instead of duking it out over OEM vehicle installs and high priced on-air talent. Now that they are the only game in town, costs for both will diminish sharply.


On Sep 11 10:13 AM *Newman* wrote:

> Sean, you do realize that about 750 million of the 1 billion that
> Sirius now has to refinance came from XM right?
>
> If the FCC had made a decision within it's 180 day time clock like
> it was supposed to, this would not be an issue. 180 days are up,
> we have not collected enough information to approve the merger, so
> we will deny it. Applicant's can refile with more information. Done.
> Both companies would be thriving right now, and the stock price would
> not be where it is today.
>
> The government screwed the pooch on this one. Good article Gino.

The Sirius/XM Disaster: The Ashes of the FCC

Sirius stinks. Everything they touch turns to poop. Buying out their superior rival XM looked like a clever move on the surface but I guess now that the deal is done, it appears Sirius was nothing but a paper tiger with debt issues that would make MC Hammer dizzy!