At long last, Sirius and XM complete their deal
“The completion comes after a marathon period of government scrutiny that ended late last week when the U.S. Federal Communications Commission approved the deal, which was first announced 17 months ago,” Reuters reports.
Now that the deal is done, it’ll be interesting to see whether it was worth the wait. Neither company has posted a profit on its own, and, in fact, they have posted huge losses along the way as they’ve paid to build up subscribers.
RBC analyst David Bank put it this way in a note to clients: “While merger is beneficial for Sirius, we remain cautious as significant execution risk exists implementing synergies and recognition of synergies is probably already priced into stock.”
While they will no longer be fighting one another, they will still have to convince audiences to pick satellite radio over traditional radio, digital audio players and iPods. That’s no easy task, particularly when people are worried about gas prices, food costs, a lousy housing market and a fragile job picture. Do people really want to be spending their extra cash on satellite radio?
Keep an eye on:
- Martha Stewart Living Omnimedia reported a quarterly profit, buoyed by higher magazine advertising sales and revenue from deals to label various products with its brand (Reuters)
- AMC’s “Mad Men,” coming off 16 Emmy nominations, scored record ratings in its second-season premiere, drawing nearly 2 million viewers (LA Times)
- The Los Angeles Times new monthly Sunday magazine, LA, will debut on September 7 (Folio)
- Sony Corp posted a bigger-than-expected 47 percent fall in quarterly profit and cut its outlook, hurt by its struggling mobile phone joint venture with Sweden’s Ericsson, while rival Matsushita nearly doubled its profit on rising flat TV sales (Reuters)