hi everyone!
if you want to read all the crazy stuff in the comments from my last blog entry then you’ll have click last week’s blog.
but what i’m really thinking about now is the merger between sirius and xm. do i need to get an xm sweatshirt too????
Reuters
Sirius plans to buy XM in $4.6 billion stock deal
Monday February 19, 7:33 pm ET
By Franklin Paul and Dane Hamilton
Under the agreement announced by the two companies on Monday, XM shareholders would receive 4.6 Sirius shares for each XM share held, or a 21.7 percent premium to XM’s closing share price of $13.98 on Friday,
Sirius would be paying about $4.6 billion in stock for XM based on shares outstanding in the latest regulatory filings.
The deal would create a company with about $1.5 billion in 2006 revenue and an enterprise value of $13 billion, including $1.6 billion in net debt.
"This combination is the next logical step in the evolution of audio entertainment," Sirius Chief Executive Mel Karmazin, a veteran media executive who will lead the new company, said in a statement. He said it would create "unprecedented choice for consumers."
But the deal will likely face tough regulatory scrutiny and objections from terrestrial radio companies.
U.S. Federal Communications Commission Chairman Kevin Martin said the agency would review the deal but "the hurdle here, however, would be high as the commission originally prohibited one company from holding the only two satellite radio licenses."
Martin said the companies would have "to demonstrate that consumers would clearly be better off with both more choice and affordable prices."
Karmazin and XM Chairman Gary Parsons told Reuters in a phone interview that they hope to meet with the FCC "shortly."
XM and Sirius say they should be allowed to combine as they compete with every audio device that consumers use — from typical car radios to digital music players. As one company, they said they can offer improved services at flexible prices.
"We are confident we will get this through the regulatory arena by the end of this year," Parsons said. "Over a decade ago when the first satellite licenses first came out, there were no iPods, there was no HD radio, there were no streaming music on cell phones."
Parsons said the merger agreement carries a break-up fee of $175 million.
"I think it’s a close call, but more likely than not I think the Justice Department and the FCC approve it," said Blair Levin, an analyst at Stifel Nicolaus & Co. and a former FCC chief of staff during the Clinton administration.
The National Association of Broadcasters, which represents local broadcast radio stations, criticized the tie-up because it would concentrate the licenses into one company.
"Now, with their stock prices at rock bottom and their business model in disarray because of profligate spending practices, they seek a government bailout to avoid competing in the marketplace," said NAB spokesman Dennis Wharton.
Karmazin and Parsons said they planned to continue to support radio devices offered by both companies while developing a new product that would work on both satellite radio services.
While the companies called the deal a "merger of equals," Sirius would own about 53 percent of the shares of the combined entity and XM would own about 47 percent under terms of the deal and based on the companies’ outstanding shares in the latest filings.
Parsons will be chairman of the merged company, but Karmazin will remain CEO — a sign analysts and shareholders typically use when determining which company gets the upper hand in a "merger of equals."
The two companies said they would work together to determine the combined company’s name and headquarters.
XM CEO Hugh Panero would continue in his current role until the merger closes.
what do you all think about the merger????
xoxoxo
jennifer
p.s. we have the voice mail comment line for the show which you can call and leave us messages… 866. 569. 7474 – remember we may use your message on the air.
That’s very interesting. I just hope the value of my sirius stock would go up. Do you think it will?
In all honesty, I loved your show, but between Lynn Samuels on air psychosis (her sick fascination with Michael Savage and Matt Drudge) and the flaunting of the uber rich on ya’lls show, I tossed my receiver out the window and cancelled my subscription. By the way, I truly believe Howard Stern is gonna rot in that hot place for his disgusting mental abuse of vulnerable (ie strippers, XXX stars) women. smooches.
Sold my XM stock 2 years ago, guess I should have held it, but I really like the sailboat it bought. Sirius only paid a bill, but has always had a better station and radio lineup. Don’t worry, Jen and Alexis; whatever will still be the it show for now. thanks for the entertainment.
As long as Martha Steward still has a channel with you guys in the line up it is all good.
I’m not thrilled with the merger. I kind of liked being a part of something that was a bit smaller, kind of like an underdog! I felt like we were all part of this family that was working just to entertain us (kind of how Howard laid it out). Now that we are merging, it’s like a step family, that I really don’t want to get to know.
Haven’t really thought about it. 🙂
I wanted Sirius because of Whatever with Alexis and Jennifer. I love to listen to Alexis and find out about her life. It is so interesting. I listen every day and read the blogs.
I only purchased Sirius for Martha’s channel – so they better now mess with Martha!
As long as the merger doesn’t change programming. I couldn’t get through the day without listening to Sirius Left and Whatever!
I can’t imagine the original content channels like Martha and Howard (and Oprah on the XM side) will be affected at all–assuming the companies even merge into one dial (not a given). The shakeout will come from the overlapping music stations: you don’t need multiple 80s and classic rock stations.
I agree, as long as they do not change Sirius’ programs. In the email I received it says XM & Sirius will act independently till the end of year. But what will happen after that?
They will be shooting themselves in the foot if they mess with Martha! As long as Martha has a channel i will subscribe. I will cancel my subscription if they get rid of MS!!!!! I’m not kidding.
as long as my lifetime subscription to sirius will be honored then a merger would be great for me since i have both. i would save the monthly xm fee and still have it all! regardless, in january i’m done paying for xm.
Mary Molnar, who is Martha Steward?? hahahaha! Just kidding…
I am really worried about a merger. I really love the sirius programs and have on XM on my tv and hate it. I only hope that sirius still controls the prgramming. I love you guys so much, never miss the show. I now love pretzels and franks hot sauce!!!
I think that in the long run it’s a good thing. I’ve always hated XM. The channel line up was horrible, and I hated all the DJ’s. However, I’m hoping that we’ll get the best of both worlds.
I suggest we all go to the Contact Us part of the Sirius website and make our opinions known (I already have)..can’t hurt to voice our affection for Whatever and any other channels we like..they’ll be formulating the changes in coming months. Let’s be heard..!
This is horrible!!!!!!
Have you seen what XM has for content? It sucks!! Who the hell wants the Oprah channel??
We chose Sirius because of the content. One year ago XM would have never even considered this deal. Now, after Howard joined and subscriptions sored, they can’t wait to merge. WTF? I say they should just keep on doing what they’re doing and bury XM.
I’m sorry but I can only forsee bad things coming from this. In the press release they mentioned an “a la carte” system. I don’t want satellite radio to turn into what cable tv has become, with B.S. tiers of programming. This will only result in price gouging, or loss of content. What if they decide that “Whatever with A&J” is not cost effective?
All I want is what I already have!!!!!
Sirius subscribers unite and protest this merger!
Love the show,
D Vegas
P.S.
Hope you survive the merge
Strange how no one likes Oprah but she’s the wealthiest woman in show business. I’m looking forward to Oprah and I bet Sirius is too.
Jennifer,
Your cake looks great and delicious!
D Vegas…
” protest this merger”
You are a clueless twit aren’t you??
Voice of reason…. I was exaggerating you moron. Is lobbing insults all that you have to contribute? Maybe if you had a clue you might have something insightful to say.
Okay, what happens to our receivers? Do they reprograam them, or is the car I just ordered with Sirius installed and my S50 for the house BOTH going to be obsolete? And XM programming isn’t wonderful…. there is a show called 3 Broads that is a complete Whatever wannabe but it’s horrific. While I realize that this is totally financially motivated and great news for shareholders, I wonder how it will be handled logistically?
Frankly, after purchasing 4 Sirius radios I am pissed that Sirius screwed me out of a REBATE for $30 based on a lie that I didn’t included the effin barcode (which I did) in my envelope. As long as they pay ridiculous (aka Howard Stern, who I love) salaries to their “stars”, their stock will never go UP because they have to maintain all that…I LOVE JENNIFER AND ALEXIS’ show and I love Martha. I hate Sirius. When Jennifer gets her own TV show, I will consider getting rid of Sirius. I know I’m rambling…Alexis and Jennifer are like peanut butter and jelly…salty and sweet! Keep up the good work.