Posted on 03/01/2007 9:13:38 AM PST by misterrob
The announcement of a proposed merger between Sirius Satellite Radio (SIRI, news, msgs) and its archrival XM Satellite Radio (XMSR, news, msgs) was treated by most of the media this week as if were just another financial event to be studied through the prism of balance-sheet analysis and the federal regulatory approval process.
But the merger plan actually amounts to the death of a dream for investors who came to believe that shares of Sirius -- propelled skyward for a short time by the hiring of snarky talk show host Howard Stern -- would make them rich beyond compare.
For while the merger might ultimately save the company from total oblivion, it is unlikely to save investors from billions of dollars in losses incurred over the past several years or, perhaps more importantly, from a loss of faith in stock ownership.
Millions of people bought Sirius shares at $6 to $8 for their retirement accounts, and rode them down to $3.50, never losing faith in Stern. At this point, they need to face up to the fact that they're screwed. Stern made half a billion. They will make nothing. They can file SIRI stock certificates away under "S" for stupid. They blew it.
(Excerpt) Read more at articles.moneycentral.msn.com ...
There. That's done. < |:)~
And XM gave Oprah a ton of money also. Both moves were poor at best.
Don't mean to be mean, but anyone who buys a speculative stock for their retirement is a loon.
My "safe" IRA actually gained during the 2001-2005 recession. Putting your retirement in a single stock is like buying lottery tickets.
When I saw the headline, the first thing that popped into my head was "Howard Stern." I see this writer agrees.
1. Why would anyone pay for radio when you can get it free?
2. Get an ipod if you want to hear music.
3. Satellite radio will be gone in 5 years.
Interesting article. I was a bigger fan of Stern when he was more of a conservative Libertarian.
I have a new luxury car but I wanted one without satellite radio which I find useless, and something that I'm not really interested in, plus I don't want to pay $12 a month to listen to it.
"Why would anyone pay for radio when you can get it free"
Presumably don't drive out in the country much.
XM has been nice out in the boonies.
This ones simple.
People will pay to listen to music without commercials.
Ipods suck MP3 players are the way to go.
I hope you are wrong I love my Sirius radio.
Kirby
Sirius gave Stern $500 Million for 5 years.
XM gave Oprah $55 Million for 3 years.
XM's deal is much cheaper.
I liked the fact that I could listen to NFL games, get talk radio and some readio stations that played stuff I might want to hear. $125 a year was not too much but you need a lot of people to sign up.
Radio sucks but the iPod costs $200 plus hundreds of dollars to keep stocked.
There is nothing else besides satellite radio...let the luddites have their FM and AM I say...
It was still too much.
"People will pay to listen to music without commercials."
That's what they told us about cable TV....and there are definitely commercials on my Sirius radio.
Same reason people pay for cable tv, though to be honest most of the folks I know who have satelite radio are just sports junkies.
2. Get an ipod if you want to hear music.
I agree with you on that, but alot of folks want to hear songs or talk radio (I'd say get the darn podcast, but to each their own) or whatever else without buying it.
3. Satellite radio will be gone in 5 years.
I highly doubt it, I'm not sure if these 2 knucklehead companies will survive, but I have no doubt satelite radio will be around for the long term. Its going to be similiar to cable TV in some sense, but will need to evolve more (and use the common sense god gives a screwdriver).
Shirley, you're not Sirius! :)
I'll sell half and take the loss on that and see what my other couple thousand shares do. If it gets to 5 or so,I'm out....
I guess the key is to have more winners in your portfolio than losers...
I for one will hate to see it go. I love listening to the old time radio shows, Martha, Alexis and Jennifer,Star channel and the Slime( I mean Lime )radio and Fox. I constantly have it on but only in my car.
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