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 ...
This is pure speculation on the author's part. And anyway, who cares why somebody bought the stock. You'd lose as much money* when the share price goes down if you'd bought the stock for "hookers and blow" or for retirement.
*Tax implications of retirement versus brokerage account ignored.
Nobody wants to listen to Top 40 crap, commercials, cheesy announcers, etc. when they can listen to non-stop music when they're driving or at home
2. Get an ipod if you want to hear music.
Most people have a catalog of their favorite music on their computer. I can listen to Yahoo Radio for free without spending $200 bucks on an Ipod
3. Satellite radio will be gone in 5 years.
Wrong
you really think so? Considering her popularity with the American woman? Take a look at her book club or magazine.
Yes I do. Women who stay home watch her on TV.
DOH! I should have put a < /sarcasm> tag. I have an XM in my house and car - plus I gave two as Christmas gifts in 2006.
For those who dump on satellite radio let me ask you, do you have Cable TV. I don't have a TV. Am I missing anyting. I love my satellite radio. It provides me with news, sports, music, talk shows. INo matter where I am driving I can listen to my radio in the car. At night if I wake up I can Listen to almost anything. Those who have a TV and wake up an watch WHAT?
1. Because free radio plays the same 6 songs over and over.
2. I like the randomness of radio and the "hey I haven't heard this in a while" effect.
3. No, it will exist in a more streamlined form. People said the same about cable and satellite TV.
Wouldn't you have loved to get in on Netflix when it first came out? How about some of these other companies that come into a market with something fresh?
You have to be willing to shack up with some mutts in order to make it big.
She's a steal compared to Stern at $455 million less.
I mean 445.
Try driving in western states.
Yeah but give her time and she will weigh that much again.
Correction.
These delusional "get rich quick" morons screwed themselves.
Millions more of us resisted the temptation. Playing against the "big boys" is always a losing game.
Yes, but with private radio, we don't have the FCC to protect us from indecency! And if that weren't enough, when the Dems reinsitute the Fairness Doctrine, we won't have that protection either!
Well, have fun staring at and worshiping your silent satellite receiver...
Hang on to it! If they pass the fairness doctrine it will destroy AM radio and you'll be *rich*-**rich**-***RICH***.
There used to be a spot out in West Texas where there was NO radio signal available...from anywhere.
As I recall, it was around Van Horn.
That your part of West Texas?
No she is over priced.
The quote "never losing faith in Stern"
The Stern move was just plan dumb.
All they need to do is lower the cost, $12.00 a month may not sound like a lot but you have to think about what it cost them to deliver the services to you.
As with all radio it makes no difference if 10 or 100,000 people are receiving the signal.
Change the price to $29.00 a year and soon you might have 100 million subscribers.
And fire Stern.
Agreed. Stern in my opinion is a horrible investment...nevermind sinking $500 million into him...plus he has his cable channel as well. The man has not run a single episode worthy of listening to since the late 1980s...who the hell sat in a meeting and said "oh yeah..let's pay Stern 500 million because he will have at least 15-20 million listeners follow him over to pay-radio...!!!!!!!" Yeah, that's the ticket.
Stern's ratings were dropping nationwide at the time of the contract with SIRIUS and have been for the last 8 years or so. Horrible investment.
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