Sirius Xm News

Mel Karmazin was just on Neil Cavuto’s Your World. As soon as the Video is uploaded I will try to get it posted.

From what I have heard there are reports that Mel bought 2 Million shares of Sirius Stock today at $1.37 a share. I guess he wanted to show investors that he believes in the company. The good news is that Sirius XM Radio is up in the after hours but it’s still dropping like a dead weight.

Hopefully Mel’s actions encourage people to invest in the company. I believe Sirius XM Radio has a bright future. Things are rough right now but I see things getting better.

Sirius XM Radio closed at $1.39 today.

Here is the Video:

XM Satellite Radio Holdings Inc., the nation’s
leading satellite radio company, today announced that it had entered
into a written agreement with holders of a majority of XM Satellite
Radio Inc.’s outstanding 9.75% Senior Notes due 2014. Pursuant to the
agreement, these holders have agreed to waive XM’s change of control
repurchase obligation of the 9.75% Notes with respect to the
consummation of the previously announced merger of XM Satellite Radio
and Sirius Satellite Radio Inc. Pursuant to the terms of the indenture
governing the 9.75% Notes, the waiver is effective for all holders of
the 9.75% Notes.

The waiver provides that, promptly following the closing of the
merger, XM will commence an offer to exchange the 9.75% Notes for a
combination of at least $400 million of cash and up to $200 million
aggregate principal amount of a new series of senior notes to be issued
by XM. The waiver is subject to the consummation of the merger and the
satisfaction of certain conditions in connection with various other
merger-related refinancing transactions to be undertaken by XM prior to
August 31, 2008. If the merger and the satisfaction of such other
conditions have not occurred by August 31, 2008, the waiver, unless
extended, will cease to be effective.

The exchange notes will mature in 2014, or 2013 in certain
circumstances. The yield to maturity on the exchange notes (calculated
solely on the basis of interest rate on the exchange notes and the
price at which they are offered in exchange for 9.75% Notes) will be
calculated on the basis of the selling price of and interest rate on
certain other senior notes expected to be issued by XM in connection
with its merger-related refinancing transactions. The effective yield
on the exchange notes will not be less than 13.92% per annum. In the
event that XM issues less than $150 million aggregate principal amount
of other senior notes in connection with its merger related refinancing
transactions, the effective yield on the exchange notes will not be
less than 15% per annum.

The senior notes expected to be issued by XM will not be registered
under the United States Securities Act of 1933 and may not be offered
or sold in the United States absent registration or an applicable
exemption from registration requirements.

Nothing in this press release should be construed as a solicitation
of an exchange or offer to purchase, or an offer to sell, any of XM’s
or XM Satellite Radio Holdings Inc.’s securities. Any offer to
exchange, purchase or sell any of XM’s or XM Satellite Radio Holdings
Inc.’s securities will be made only upon the terms and conditions set
forth in an offering document related thereto.

Both Sirius and XM’s stocks have been falling like a 100lb Weight from an Airplane.

Right now Sirius is at 1.99 and Xm at 8.28 per share.

The only thing I can suggest for Current stock owners is to stick it out, I believe we will hear about the merger soon. It’s a shame a company like Goldman Sachs can have this much of an effect on stock prices.

On a good note Cowen & Co totally disagree with Goldman and have nothing but positive comments on the pending merger.

Read the Article Here

XM Satellite Radio and Sirius Satellite Radio today announced that they have postponed their 2008 annual meeting
of stockholders. The companies will announce a new date for the meeting when there is further information relating to the timing of the pending merger.

Maybe they know something we don’t? Hopefully this is good news.

[Via:Cnn.com]

Today Citi listed XM Satellite Radio with a Hold (from Buy). Price target lowered from $17 to $12.25. Citi rates Sirius with a Buy. Price target $9.

Citi analyst says, “Satellite radio should continue to change the audio
entertainment industry and gain share as its proves to be fresh (no
need to create play lists or buy MP3s), original, cost effective, and a
simple way to access premium/long tail content that can not be
supported via radio or MP3 models. Given the highly fixed cost base of
the companies, we view the sub growth as the key driver of the stocks
and we see the industry having up to 55 million subsripts by 2011
(+33.3% CAGR)…70% Merger Probability - We believe that the proposed
merger between SIRI and XMSR will drive significant costs savings (we
forecast ~$500 mil by 2010 or 13% of the expense base) and potential
revenue synergies of another $400 million.”

I’m not going to comment on this story because we have heard things like this in the past and right now it is just another rumor for this ever evolving merger.

Shares of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings
Inc., which are awaiting regulatory clearance from regulators to
combine, jumped on Thursday after an analyst upgraded both companies
and said she believes the acquisition deal will be approved.

Investors are anxiously waiting for the Department of Justice and
the Federal Communications Commission to approve the $5 billion deal
for Sirius to acquire its rival. The companies had originally hoped to
receive clearance by the end of 2007.

On Thursday, Janco Partners
analyst April Horace raised her rating of XM shares to “Buy” from
“Accumulate” on her assumption the deal will eventually close. She also
upgraded her rating of Sirius shares to “Accumulate” from “Market
Perform.”

Horace estimated that the combined companies could achieve cost savings of $4.1 billion over the next 6 years.

“It
remains to be seen whether or not the DOJ approval will arrive before
Sirius reports its financial results, sometime in the second half of
February,” Horace said in a note to investors. She noted that the
companies have an option to cancel the deal without penalty if it does
not win regulatory approval by March 1.

“We believe that the DOJ
will make an announcement before March 1, and that the companies will
extend the March 1 date if they are still waiting for FCC approval,”
the analyst said.

Shares of Sirius jumped 14 cents, or 4.6
percent, to close at $3.20 on Thursday. The stock has traded between
$2.51 and $4.06 during the past 52 weeks. Shares of XM Satellite Radio
Holdings Inc. gained 49 cents, or 4.1 percent, to close at $12.40.
During the past 52 weeks, the stock has traded between $9.62 and $16.44.

[Via:AP]

This news should only make the two stocks climb higher.

Still like every other day waiting for this merger to happen it’s all speculation until there is an official announcement.

Technorati Tags: sirius xm merger, sirius xm news, stocks

Mad Money host Jim Cramer think seriously about Sirius.

Today Cramer from Mad Money gave his take on Sirius, Xm and the Merger.

Check out the Video here:

http://www.cnbc.com/id/15840232?video=628513517

Let me know what you think.

Buy, Buy, Buy.

Technorati Tags: cramer, mad money cnbc, video, sirius xm merger news. satellite radio news, xm radio, sirius radio

XM and Sirius climbed Wednesday on speculation that U.S. regulators are very close to granting approval to the merger of the two satellite radio broadcasters.

According to a headline on Briefing.com, the buzz suggested that the Justice Department and the Federal Communications Commission could have a decision tonight. The Web site didn’t list any sources for the rumor so this is all speculation.

Most are skeptical. David Trout of M&A Researcher said

“We do not anticipate a decision tonight or in the immediate future,”

The proposed $4.6 billion deal is awaiting regulatory approval from antitrust lawyers at the Justice Department, as well as from consumer advocates at the Federal Communications Commission. Observers say the highest hurdle for approval is convincing antitrust officials that satellite radio faces formidable competition from conventional radio and new devices like Apple’s iPod. Company representatives declined to comment on the speculation. Sirius shares were adding 13 cents to $2.78 and XM was up 41 cents to $11, bucking a selloff in the tech sector Wednesday.

They need to figure out something soon. This has to be one of the longest merger decisions ever….what is the big problem?

As soon as there is word on the merger you will see it here on Siriusxmnews.com

Technorati Tags: sirius xm merger, sirius, xm, stocks, satellite radio, merger news, sirius xm merger approved

I have shares in Sirius and believe me I have seen this stock go down and down day after day. I’m going to stick with it though.
I figure if the Merger goes through Sirius will shoot up, if not I believe that Sirius will still be the better stock than XM which has been falling and falling.
 
The thing that gets me is that if the Merger does not go through in the end it’s going to be only one Satellite Radio service because XM is most likely going to tank.

I’ve been waiting patiently for this Merger but It’s starting to get pretty annoying with this long wait. I don’t know what is up with the FCC but they better make a decision soon.

Here is the Article to match the Headline. Hope everyone likes the new site. Leave me any comments that you might have.

LOS ANGELES, Jan 9 (Reuters) - Shares of Sirius Satellite Radio Inc (SIRI.O: Quote, Profile, Research) and XM Satellite Radio Holdings Inc (XMSR.O: Quote, Profile, Research) fell more than 10 percent on Wednesday on worries their planned merger could be in trouble, analysts said.

Sirius Chief Executive Mel Karmazin told an investor conference on
Tuesday that he had not yet “officially” heard from government
regulators who have to approve the deal, but added that he was still
confident the merger was on track.

Barrington Research analyst James Goss said investors were trying
to determine from Karmazin’s comments whether there was opposition at
the Department of Justice, which will decide if combining the two U.S.
satellite radio companies would be anti-competitive for consumers.

“I think one of the issues has been the speculation about whether
the merger will take place,” Goss said. “Today’s sentiment seems to be
‘no.’”

He added that the shares “had run up for awhile when it seemed like
everybody was getting on board with the notion that it would take
place.”

On Nasdaq, XM fell 8 percent to $10.55 and Sirius dropped 5 percent to $2.82 at mid-afternoon.

“The merger between XM Satellite and Sirius was expected to be
completed by the end of 2007 but this did not happen,” said William
Lefkowitz, an options strategist at brokerage firm vFinance
Investments. “Therefore, some investors are concerned that this deal is
running into problems and may never be completed.”

(Reporting by Gina Keating in Los Angeles and Doris Frankel in Chicago, editing by Richard Chang)

Technorati Tags: sirius, xm, satellite radio, merger news, merger, FCC, Stocks, Shares