XM Satellite Radio (MM) (XMSR) Share Price

Say good night to XMSR and hello to SIRI.... Good bye

XMSR Looking for a bounce here soon. Chart:

Florida: imo there should be a little movement when the merger goes through and it should rise a bit. Imo the big thing is if they can cut the SAC costs.

If they can develop a trend of lowering SAC costs each quarter then NI should ensue etc, and SP should increase. Who knows, combining two companies which are losing money most times just gives you a bigger company losing money, unless they get a cost cutter involved.

Thanks Trade. I'm on the right page now. Curious to see when this downtrend stops and "both" stocks start moving up again. Regards, Florida

Florida just type in SIRI up in the Search Box, since this one looks like it will be merged with Siri I'm fairly sure that will remain the more active of the two boards.

Does anyone know the link to the message board for SIRI ??? Thanks, Florida

MERGER APPROVED!

Former FCC-Pro Comments on Siri/XM Merger
November 13, 2007 - 8:02 AM EST

SIRI 3.63 0.22
Today 5d 1m 3m 1y 5y 10y

XMSR 15.06 1.33
Today 5d 1m 3m 1y 5y 10y

Former FCC Chairman Hundt Comments on Sirius-XM Merger in Interview
Architect of Satellite Radio at FCC Says Merger is Pro-Competitive, 1997 License Rules Not an Issue with the Merger

WASHINGTON and NEW YORK, Nov. 13 /PRNewswire-FirstCall/ -- XM Satellite Radio (Nasdaq: XMSR) and SIRIUS Satellite Radio (Nasdaq: SIRI) announced today that, as part of an interview, former FCC Chairman Reed Hundt voiced support for the merger of SIRIUS and XM. A copy of the unedited transcript of the interview was filed today with the Federal Communications Commission (FCC).

Mr. Hundt served as Chairman of the FCC from 1993 through 1997. During his tenure, the Commission formulated rules for satellite radio and granted SIRIUS and XM their licenses, a process in which Mr. Hundt was integrally involved.

In the interview, Mr. Hundt discussed, among other things, the proposed merger of SIRIUS and XM, the creation of the satellite radio rules, the rationale behind the establishment of two satellite radio licenses and developments in the audio entertainment market since 1997.

The Merger is Pro-Competitive

When asked in an on the record conversation what his views of the merger were, Mr. Hundt stated:

'I think that if XM and Sirius combined, it will be pro-competitive in all likelihood. It seems to me that that is far more likely than not. It seems to me that what has happened over time is that these two firms have proved when kept apart to be incapable of mounting the really serious competition against ... terrestrial radio that I had always hoped for. And it seems to me that there's no indication of any anticompetitive outcome if they do combine, so let's give them a chance to have a sharper point on the arrow and see if they can do better in terms of penetrating the listener audience.'

Separate Licenses Are Not an Issue for the Merger

Given some of the outstanding questions surrounding the creation of two separate licenses for XM and SIRIUS at the time of inception, Mr. Hundt, as the Chair of the FCC at the time, used this discussion to clarify for the record the intention behind the FCC's 1997 order creating the satellite radio service.

'I should just say my thought was this: Let's start out with these two licenses, since it is not clear exactly what is the optimal business model, and then let's let the two firms go at it for a while and see what happens. But it was never the case that these service rules were intended to be written [in] concrete or, like the Constitution of the United States, changed only through an elaborate process. It was an attempt to figure out a good way to get the satellite radio industry off to a pro-competitive start and then in the fullness of time the FCC and the parties and the people in the industry would be able to see, well, what works and what doesn't work, what's happening and what isn't happening.'

The Market Has Changed

As the regulatory process continues and both the FCC and the Department of Justice (DoJ) review market definition, Mr. Hundt's thoughts on the current market for audio entertainment and all of the competitive options available are especially interesting.

'[T]here are so many new ways fundamentally spawned from digitization and the tremendous increase of processing power per dollar, there are so many new ways to generate and deliver content to listeners that the idea that either satellite radio as a distinct market or that satellite radio is the only competitor against terrestrial broadcasting, neither one of those ideas holds water anymore.'

Satellite Radio Is a Necessary Competitor to AM/FM Radio

Mr. Hundt also reviewed the intention behind establishing satellite radio as a competitor to terrestrial AM/FM radio.

'[T]here was not a shadow of doubt in my mind that the competitive force of satellite radio was one of the very few arrows we had to shoot at this elephant-like industry that was going to be created in terrestrial radio. And as I said, looking back over the last ten years, both things proved to be true. It's just that the arrow, if you want to put it that way, of satellite radio has not had a sharp enough point on it.'

As part of the interview, Mr. Hundt stated that, as former Chairman of the FCC, he felt an obligation to address on the record the important issues related to satellite radio with which he was integrally involved during his tenure.

For more information on the SIRIUS-XM merger, please visit www.xmmerger.com or www.siriusmerger.com.

About SIRIUS

SIRIUS, 'The Best Radio on Radio,' delivers more than 130 channels of the best programming in all of radio. SIRIUS is the original and only home of 100% commercial free music channels in satellite radio, offering 69 music channels. SIRIUS also delivers 65 channels of sports, news, talk, entertainment, traffic, weather and data. SIRIUS is the Official Satellite Radio Partner of the NFL, NASCAR and NBA, and broadcasts live play-by-play games of the NFL and NBA, as well as live NASCAR races. All SIRIUS programming is available for a monthly subscription fee of only $12.95.

SIRIUS Internet Radio (SIR) is a CD-quality, Internet-only version of the SIRIUS radio service, without the use of a radio, for the monthly subscription fee of $12.95. SIR delivers more than 80 channels of talk, entertainment, sports, and 100% commercial free music.

SIRIUS Backseat TV(TM) is the first ever live in-vehicle rear seat entertainment featuring three channels of children's TV programming, including Nickelodeon, Disney Channel and Cartoon Network, for the subscription fee of $6.99 plus applicable audio subscription fee.

SIRIUS products for the car, truck, home, RV and boat are available in more than 20,000 retail locations, including Best Buy, Circuit City, Crutchfield, Costco, Target, Wal-Mart, Sam's Club, RadioShack and at shop.sirius.com.

SIRIUS radios are offered in vehicles from Audi, Bentley, BMW, Chrysler, Dodge, Ford, Infiniti, Jaguar, Jeep(R), Land Rover, Lexus, Lincoln, Mercury, Maybach, Mazda, Mercedes-Benz, MINI, Mitsubishi, Nissan, Rolls Royce, Scion, Toyota, Volkswagen, and Volvo. Hertz also offers SIRIUS in its rental cars at major locations around the country.

Click on www.sirius.com to listen to SIRIUS live, or to purchase a SIRIUS radio and subscription.

About XM

XM is America's number one satellite radio company with more than 8.5 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City, Chicago, the Country Music Hall of Fame in Nashville, Toronto and Montreal, XM's 2007 lineup includes more than 170 digital channels of choice from coast to coast: commercial-free music, premier sports, news, talk radio, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Hyundai, Nissan, Porsche, Subaru, Suzuki and Toyota is available in 140 different vehicle models for 2007. XM's industry-leading products are available at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com.

This communication contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., including potential synergies and cost savings and the timing thereof, future financial and operating results, the combined company's plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as 'anticipate,' 'believe,' 'plan,' 'estimate,' 'expect,' 'intend,' 'will,' 'should,' 'may,' or words of similar meaning. Such forward- looking statements are based upon the current beliefs and expectations of SIRIUS' and XM's management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond the control of SIRIUS and XM. Actual results may differ materially from the results anticipated in these forward-looking statements.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statement: general business and economic conditions; the performance of financial markets and interest rates; the ability to obtain governmental approvals of the transaction on a timely basis; the failure of SIRIUS and XM stockholders to approve the transaction; the failure to realize synergies and cost-savings from the transaction or delay in realization thereof; the businesses of SIRIUS and XM may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; and operating costs and business disruption following the merger, including adverse effects on employee retention and on our business relationships with third parties, including manufacturers of radios, retailers, automakers and programming providers. Additional factors that could cause SIRIUS' and XM's results to differ materially from those described in the forward-looking statements can be found in SIRIUS' and XM's Annual Reports on Form 10-K for the year ended December 31, 2006, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007, which are filed with the Securities and Exchange Commission (the 'SEC') and available at the SEC's Internet site (http://www.sec.gov). The information set forth herein speaks only as of the date hereof, and SIRIUS and XM disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication.

Important Additional Information and Where to Find It

This communication is being made in respect of the proposed business combination involving SIRIUS and XM. In connection with the proposed transaction, SIRIUS has filed with the SEC a Registration Statement on Form S- 4 containing a definitive Joint Proxy Statement/Prospectus and each of SIRIUS and XM may file with the SEC other documents regarding the proposed transaction. The Joint Proxy Statement/Prospectus was first mailed to stockholders of SIRIUS and XM on or about October 9, 2007. INVESTORS AND SECURITY HOLDERS OF SIRIUS AND XM ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS, AS WELL AS OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Investors and security holders can obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus and other documents filed with the SEC by SIRIUS and XM through the web site maintained by the SEC at www.sec.gov. Free copies of the Registration Statement and the Joint Proxy Statement/Prospectus and other documents filed with the SEC can also be obtained by directing a request to Sirius Satellite Radio Inc., 1221 Avenue of the Americas, 36th Floor, New York, NY 10020, Attention: Investor Relations or by directing a request to XM Satellite Radio Holdings Inc., 1500 Eckington Place, N.E. Washington, DC 20002, Attention: Investor Relations.

SIRIUS, XM and their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding SIRIUS' directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007, and its proxy statement for its 2007 annual meeting of stockholders, which was filed with the SEC on April 23, 2007, and information regarding XM's directors and executive officers is available in XM's Annual Report on Form 10-K, for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007 and its proxy statement for its 2007 annual meeting of stockholders, which was filed with the SEC on April 17, 2007. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the Joint Proxy Statement/Prospectus filed with the SEC.

SIRIUS
Media Relations
Patrick Reilly
212-901-6646
PReilly@siriusradio.com

Kelly Sullivan
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
ksullivan@joelefrank.com

XM
Media Relations
Nathaniel Brown
212-708-6170
Nathaniel.Brown@xmradio.com

Chance Patterson
202-380-4318
Chance.Patterson@xmradio.com

SOURCE XM Satellite Radio; SIRIUS Satellite Radio

Source: PR Newswire (November 13, 2007 - 8:02 AM EST)

News by QuoteMedia
www.quotemedia.com November 13, 2007 - 8:02 AM EST
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SIRI 3.63 0.22
Today 5d 1m 3m 1y 5y 10y

XMSR 15.06 1.33
Today 5d 1m 3m 1y 5y 10y

Former FCC Chairman Hundt Comments on Sirius-XM Merger in Interview
Architect of Satellite Radio at FCC Says Merger is Pro-Competitive, 1997 License Rules Not an Issue with the Merger

WASHINGTON and NEW YORK, Nov. 13 /PRNewswire-FirstCall/ -- XM Satellite Radio (Nasdaq: XMSR) and SIRIUS Satellite Radio (Nasdaq: SIRI) announced today that, as part of an interview, former FCC Chairman Reed Hundt voiced support for the merger of SIRIUS and XM. A copy of the unedited transcript of the interview was filed today with the Federal Communications Commission (FCC).

Mr. Hundt served as Chairman of the FCC from 1993 through 1997. During his tenure, the Commission formulated rules for satellite radio and granted SIRIUS and XM their licenses, a process in which Mr. Hundt was integrally involved.

In the interview, Mr. Hundt discussed, among other things, the proposed merger of SIRIUS and XM, the creation of the satellite radio rules, the rationale behind the establishment of two satellite radio licenses and developments in the audio entertainment market since 1997.

The Merger is Pro-Competitive

When asked in an on the record conversation what his views of the merger were, Mr. Hundt stated:

'I think that if XM and Sirius combined, it will be pro-competitive in all likelihood. It seems to me that that is far more likely than not. It seems to me that what has happened over time is that these two firms have proved when kept apart to be incapable of mounting the really serious competition against ... terrestrial radio that I had always hoped for. And it seems to me that there's no indication of any anticompetitive outcome if they do combine, so let's give them a chance to have a sharper point on the arrow and see if they can do better in terms of penetrating the listener audience.'

Separate Licenses Are Not an Issue for the Merger

Given some of the outstanding questions surrounding the creation of two separate licenses for XM and SIRIUS at the time of inception, Mr. Hundt, as the Chair of the FCC at the time, used this discussion to clarify for the record the intention behind the FCC's 1997 order creating the satellite radio service.

'I should just say my thought was this: Let's start out with these two licenses, since it is not clear exactly what is the optimal business model, and then let's let the two firms go at it for a while and see what happens. But it was never the case that these service rules were intended to be written [in] concrete or, like the Constitution of the United States, changed only through an elaborate process. It was an attempt to figure out a good way to get the satellite radio industry off to a pro-competitive start and then in the fullness of time the FCC and the parties and the people in the industry would be able to see, well, what works and what doesn't work, what's happening and what isn't happening.'

The Market Has Changed

As the regulatory process continues and both the FCC and the Department of Justice (DoJ) review market definition, Mr. Hundt's thoughts on the current market for audio entertainment and all of the competitive options available are especially interesting.

'[T]here are so many new ways fundamentally spawned from digitization and the tremendous increase of processing power per dollar, there are so many new ways to generate and deliver content to listeners that the idea that either satellite radio as a distinct market or that satellite radio is the only competitor against terrestrial broadcasting, neither one of those ideas holds water anymore.'

Satellite Radio Is a Necessary Competitor to AM/FM Radio

Mr. Hundt also reviewed the intention behind establishing satellite radio as a competitor to terrestrial AM/FM radio.

'[T]here was not a shadow of doubt in my mind that the competitive force of satellite radio was one of the very few arrows we had to shoot at this elephant-like industry that was going to be created in terrestrial radio. And as I said, looking back over the last ten years, both things proved to be true. It's just that the arrow, if you want to put it that way, of satellite radio has not had a sharp enough point on it.'

As part of the interview, Mr. Hundt stated that, as former Chairman of the FCC, he felt an obligation to address on the record the important issues related to satellite radio with which he was integrally involved during his tenure.

For more information on the SIRIUS-XM merger, please visit www.xmmerger.com or www.siriusmerger.com.

About SIRIUS

SIRIUS, 'The Best Radio on Radio,' delivers more than 130 channels of the best programming in all of radio. SIRIUS is the original and only home of 100% commercial free music channels in satellite radio, offering 69 music channels. SIRIUS also delivers 65 channels of sports, news, talk, entertainment, traffic, weather and data. SIRIUS is the Official Satellite Radio Partner of the NFL, NASCAR and NBA, and broadcasts live play-by-play games of the NFL and NBA, as well as live NASCAR races. All SIRIUS programming is available for a monthly subscription fee of only $12.95.

SIRIUS Internet Radio (SIR) is a CD-quality, Internet-only version of the SIRIUS radio service, without the use of a radio, for the monthly subscription fee of $12.95. SIR delivers more than 80 channels of talk, entertainment, sports, and 100% commercial free music.

SIRIUS Backseat TV(TM) is the first ever live in-vehicle rear seat entertainment featuring three channels of children's TV programming, including Nickelodeon, Disney Channel and Cartoon Network, for the subscription fee of $6.99 plus applicable audio subscription fee.

SIRIUS products for the car, truck, home, RV and boat are available in more than 20,000 retail locations, including Best Buy, Circuit City, Crutchfield, Costco, Target, Wal-Mart, Sam's Club, RadioShack and at shop.sirius.com.

SIRIUS radios are offered in vehicles from Audi, Bentley, BMW, Chrysler, Dodge, Ford, Infiniti, Jaguar, Jeep(R), Land Rover, Lexus, Lincoln, Mercury, Maybach, Mazda, Mercedes-Benz, MINI, Mitsubishi, Nissan, Rolls Royce, Scion, Toyota, Volkswagen, and Volvo. Hertz also offers SIRIUS in its rental cars at major locations around the country.

Click on www.sirius.com to listen to SIRIUS live, or to purchase a SIRIUS radio and subscription.

About XM

XM is America's number one satellite radio company with more than 8.5 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City, Chicago, the Country Music Hall of Fame in Nashville, Toronto and Montreal, XM's 2007 lineup includes more than 170 digital channels of choice from coast to coast: commercial-free music, premier sports, news, talk radio, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Hyundai, Nissan, Porsche, Subaru, Suzuki and Toyota is available in 140 different vehicle models for 2007. XM's industry-leading products are available at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com.

This communication contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., including potential synergies and cost savings and the timing thereof, future financial and operating results, the combined company's plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as 'anticipate,' 'believe,' 'plan,' 'estimate,' 'expect,' 'intend,' 'will,' 'should,' 'may,' or words of similar meaning. Such forward- looking statements are based upon the current beliefs and expectations of SIRIUS' and XM's management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond the control of SIRIUS and XM. Actual results may differ materially from the results anticipated in these forward-looking statements.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statement: general business and economic conditions; the performance of financial markets and interest rates; the ability to obtain governmental approvals of the transaction on a timely basis; the failure of SIRIUS and XM stockholders to approve the transaction; the failure to realize synergies and cost-savings from the transaction or delay in realization thereof; the businesses of SIRIUS and XM may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; and operating costs and business disruption following the merger, including adverse effects on employee retention and on our business relationships with third parties, including manufacturers of radios, retailers, automakers and programming providers. Additional factors that could cause SIRIUS' and XM's results to differ materially from those described in the forward-looking statements can be found in SIRIUS' and XM's Annual Reports on Form 10-K for the year ended December 31, 2006, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007, which are filed with the Securities and Exchange Commission (the 'SEC') and available at the SEC's Internet site (http://www.sec.gov). The information set forth herein speaks only as of the date hereof, and SIRIUS and XM disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication.

Important Additional Information and Where to Find It

This communication is being made in respect of the proposed business combination involving SIRIUS and XM. In connection with the proposed transaction, SIRIUS has filed with the SEC a Registration Statement on Form S- 4 containing a definitive Joint Proxy Statement/Prospectus and each of SIRIUS and XM may file with the SEC other documents regarding the proposed transaction. The Joint Proxy Statement/Prospectus was first mailed to stockholders of SIRIUS and XM on or about October 9, 2007. INVESTORS AND SECURITY HOLDERS OF SIRIUS AND XM ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS, AS WELL AS OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Investors and security holders can obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus and other documents filed with the SEC by SIRIUS and XM through the web site maintained by the SEC at www.sec.gov. Free copies of the Registration Statement and the Joint Proxy Statement/Prospectus and other documents filed with the SEC can also be obtained by directing a request to Sirius Satellite Radio Inc., 1221 Avenue of the Americas, 36th Floor, New York, NY 10020, Attention: Investor Relations or by directing a request to XM Satellite Radio Holdings Inc., 1500 Eckington Place, N.E. Washington, DC 20002, Attention: Investor Relations.

SIRIUS, XM and their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding SIRIUS' directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007, and its proxy statement for its 2007 annual meeting of stockholders, which was filed with the SEC on April 23, 2007, and information regarding XM's directors and executive officers is available in XM's Annual Report on Form 10-K, for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007 and its proxy statement for its 2007 annual meeting of stockholders, which was filed with the SEC on April 17, 2007. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the Joint Proxy Statement/Prospectus filed with the SEC.

SIRIUS
Media Relations
Patrick Reilly
212-901-6646
PReilly@siriusradio.com

Kelly Sullivan
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
ksullivan@joelefrank.com

XM
Media Relations
Nathaniel Brown
212-708-6170
Nathaniel.Brown@xmradio.com

Chance Patterson
202-380-4318
Chance.Patterson@xmradio.com

SOURCE XM Satellite Radio; SIRIUS Satellite Radio

Source: PR Newswire (November 13, 2007 - 8:02 AM EST)

News by QuoteMedia
www.quotemedia.com

hex I would assume so since they started the rental market before SIRI, but I actually just worry about net income and SAC cost as opposed to growing fast and losing faster. Which both seem more than capable of.

Any chance you know if XM is also over in Europe now?

hex: XM has been in rentals for years here in the states, started with Avis I believe back in the 90s.


They both have to decrease SAC costs at an increasing rate to make real progress, not merely increase sales.

I also thing the commercials really turn many off, I know they do me.

Yep!!! I hear Sirius radios are in rental cars over in Germany. That market only opened within a couple years.

Hex and now if the 2 could just join forces maybe they could make some money. Their sales go up but the profits aren't. The problem imo is not making significant Revenue growth, it is much more making Significant NET Profit % growth yoy. Unfortunately selling more of anything with no bottom line progress only makes a bigger problem. imo

SIRIUS Satellite Named Fastest Growing Company in Deloitte's 2007
Technology Fast 500 Ranking
Tuesday October 23, 9:02 am ET
Revenue-driven business models contribute to growth of technology sector

SAN JOSE, Calif., Oct. 23 /PRNewswire/ -- SIRIUS Satellite Radio Inc. (Nasdaq: SIRI - News) was named the fastest growing technology company in North America, topping the 2007 Deloitte Technology Fast 500 ranking of the fastest growing technology, media, telecommunications and life sciences companies in North America. The award is based on percentage revenue growth over five years (fiscal years 2002-2006).

SIRIUS reported a revenue growth rate over five years of 79,060 percent, moving from revenues of $805,000 in 2002 to $637,235,000 in 2006. Based in New York City, SIRIUS (www.sirius.com) is a publicly held provider of satellite radio services. The company delivers more than 130 channels of the "Best Radio on Radio," including 68 channels of 100 percent commercial-free music and 65 channels of sports, news, talk, entertainment, traffic, weather and data services. This is its first appearance on the Fast 500 ranking.

"We congratulate SIRIUS Satellite Radio and all of our Fast 500 winners on their tremendous growth during a time when globalization is creating an extremely competitive environment," said Phil Asmundson, vice chairman, U.S., Technology, Media and Telecommunications, Deloitte & Touche USA LLP. "Numerous technology advances, the ubiquitous digitization of data, borderless enterprises, growth in connectivity and faster adoption rates are creating new opportunities for Fast 500 winners to challenge old business models with original ideas."

http://biz.yahoo.com/prnews/071023/nytu079.html?.v=101

bluebird: once assuming it is a go, it occurs, then the trick is to figure what it really will do to earnings.

Well they have a 6 month clock on these generally speaking, so we wait and see. I think its coming to a head, especially with the S-4 issued today. bird

Blue Bird yes the FDA can FASTTRACK I doubt if the FTC or FCC will do that since they likely see no real need and likely have the competition of Satellite Radio trying to lobby and slow down any merger feeling it will be tougher to compete against. jmo

This is concerning a merger (money) though and they are a bit more johnny on the spot. That, granted its not a FDA approval or pending patents.
Bird

Bluebird: getting anything thru government takes forever and for this committee hearing would have to be held and voted on. I bet the process from start to finish is 12 months. Just a guess but I would not be shocked if it is next Spring.

This late in the game should be a go.

Bluebird: have not heard that it is not in the works still.

Are we merging?

XM Canada reports third quarter financial results
Monday July 16, 11:28 am ET


>> Achieved 269,900 subscribers
Operating highlights:
- Announced XM Satellite Radio is the exclusive satellite radio provider of the NHL for the next eight seasons until 2015
- 150,000 General Motors vehicles equipped with factory-installed satellite radios on the road
- Increased retail distribution network with a year-to-date addition of more than 500 new locations, achieving a total of more than 3,300 retail locations
- Achieved 269,900 subscribers
- Improved performance in automotive sector with XM Canada now leading with over 80 per cent market share of factory-installed satellite radios
- Increased to 120 channels to provide more unique content and programming choices than any other satellite radio provider in Canada <<
TORONTO, July 16 /CNW/ - Canadian Satellite Radio Holdings Inc. ("CSR") (TSX:XSR - News), today reported its financial results for the third quarter ended May 31, 2007 based on the achievement of 269,900 subscribers.


"Our second anniversary is quickly approaching and marks a departure from our phase one launch period into a new phase of growth and development," said John Bitove, Chairman and CEO of Canadian Satellite Radio Holdings Inc. "We are pleased with our performance this quarter, and as we move forward we will continue to search for new opportunities to maintain our aggressive growth strategy and build our subscriber base. Our long-term agreement with the NHL is an example of our commitment to growth."

Financial results

For the three-month period ended May 31, 2007, XM Canada reported revenue of $5.7 million, an increase of 144 per cent over the third quarter of 2006. This increase in revenue is the direct result of an increase in our subscriber base. Revenue to XM Canada is generated by subscriptions, activation fees, sale of merchandise and advertising sales on Canadian-produced channels.

Adjusted operating loss(1) for the three-month period was $9.8 million, an improvement of $3.4 million over the third quarter of 2006. Adjusted operating loss is expected to improve as we continue to grow our subscriber base and manage operating expenses.

For the third quarter, Average Revenue Per Unit (ARPU) was $11.70, a decrease of $1.30 from the third quarter of 2006. We incurred Subscriber Acquisition Costs (SAC) of $40 per gross addition, a decrease of $29 from our third quarter of 2006. Cost Per Gross Addition (CPGA) was $178, a decrease of $63 over our third quarter of 2006.

The decline in ARPU and SAC from the third quarter of 2006 is primarily due to our fiscal 2007 holiday promotion, which included service credits and hardware rebates that are being amortized as a reduction of revenues over the term of the subscriber payment plan, as well as the introduction of multi-year plans during 2006 and an increasing number of family plan activations. The decline in SAC is also due to an increasing number of subscriber additions through our automotive partnerships. CPGA decreased due to a decrease in both SAC and advertising and marketing expenses.

Operational expenses for the three-month period ended May 31, 2007 included general and administrative expenses of $3.6 million, marketing spend of $5.0 million and cost of revenue of $6.3 million.


------------------------
(1) Adjusted operating loss defined in Consolidated Statement of
Operations and Deficit.

Conference Call / Webcast
John I. Bitove, Chairman and Chief Executive Officer and Michael Washinushi, Chief Financial Officer will discuss the third quarter results on Monday, July 16, 2007 at 2 p.m. (EDT). To participate in the conference call, please dial 1-416-644-3414 (Toronto) or 1-800-733-7571 (Toll Free).

A live audio webcast (listen-only mode) of the conference call will be available at

http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal sign)1908940

and www.cdnsatrad.com. The slides to accompany the financial results are found at www.cdnsatrad.com.

An archived recording of the conference will be available at 1-416-640-1917 (Toronto) or 1-877-289-8525 (Toll-free) (Passcode: 21237883 followed by the number sign.) on July 16, 2007 after 4 p.m. EDT until July 30, 2007 at 11:59 p.m. EDT.

Forward-looking statements

Certain statements included above may be forward-looking in nature. Such statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "should," "intend," "plan," or "anticipates" or the negative thereof or comparable terminology, or by discussions of strategy. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Although CSR believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. CSR's forward-looking statements are expressly qualified in their entirety by this cautionary statement. CSR makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.

Additional information identifying risks and uncertainties is contained in CSR's filings with the Canadian securities regulators, available at www.sedar.com.


Canadian Satellite Radio Holdings Inc
Interim Consolidated Balance Sheet (Unaudited)

May 31, August 31,
2007 2006
$ $
Assets

Current assets
Cash 10,296,978 45,188,214
Short term investment 5,349,500 -
Accounts receivable 3,674,574 2,125,367
Inventory 162,659 600,124
Prepaid expenses and other assets 4,735,505 6,882,247
Restricted investments 13,362,233 13,663,023
----------------------------

37,581,449 68,458,975

Restricted investments 12,777,479 19,370,939

Deferred financing costs 4,628,780 5,146,280

Property and equipment 21,604,010 23,221,760

Contract rights, distribution rights and
computer software 225,138,064 239,648,067
----------------------------

Total assets 301,729,782 355,846,021
----------------------------
----------------------------

Liabilities and Shareholders' Equity

Current liabilities
Accounts payable and accrued liabilities 16,198,105 13,516,770
Deferred revenue 7,649,117 2,969,366
----------------------------

23,847,222 16,486,136

Long-term debt 108,056,466 110,660,000

Deferred revenue 3,285,406 1,032,289

Long-term obligations 361,774 310,405
----------------------------

Total liabilities 135,550,868 128,488,830
----------------------------

Shareholders' Equity
Share capital 312,785,862 312,595,362
Contributed surplus 29,229,378 26,344,137
Deficit (175,836,326) (111,582,308)
----------------------------

Total shareholders' equity 166,178,914 227,357,191
----------------------------

Total liabilities and shareholders' equity 301,729,782 355,846,021
----------------------------
----------------------------



Canadian Satellite Radio Holdings Inc.
Interim Consolidated Statement of Operations and Deficit (Unaudited)


Three months ended Nine months ended
May 31, May 31,
2007 2006 2007 2006
$ $ $ $

Revenue 5,710,886 2,340,969 14,411,140 3,531,909
--------------------------------------------------------

Operating expenses
Cost of revenue 6,288,948 5,918,027 19,208,952 14,237,726
Indirect costs - - - 827,125
General and
administrative 3,632,199 3,435,982 12,571,509 13,036,452
Special charges 573,400 - 573,400
Stock-based
compensation 720,032 691,251 2,407,573 22,935,797
Marketing 5,047,684 6,230,690 20,574,356 20,246,285
Amortization of
intangible assets
and property and
equipment 5,606,096 5,252,920 16,810,627 10,444,230
--------------------------------------------------------

21,868,359 21,528,870 72,146,417 81,727,615
--------------------------------------------------------

Loss before the
undernoted (16,157,473) (19,187,901) (57,735,277) (78,195,706)

Interest revenue 434,731 1,172,632 1,936,112 1,617,969

Interest expenses 3,819,342 3,849,197 11,641,210 4,506,123

Foreign exchange
gain (6,273,883) (1,460,860) (3,186,357) (2,112,090)
--------------------------------------------------------

Net loss for the
period (13,268,201) (20,403,606) (64,254,018) (78,971,770)

Deficit -
Beginning of
period (162,568,125) (67,446,894) (111,582,308) (8,878,730)
--------------------------------------------------------

Deficit - End of
period (175,836,326) (87,850,500) (175,836,326) (87,850,500)
--------------------------------------------------------
--------------------------------------------------------

Basic and fully
diluted loss per
common share (0.28) (0.43) (1.35) (2.66)
--------------------------------------------------------
--------------------------------------------------------



Canadian Satellite Radio Holdings Inc.
Reconciliation of Loss before the undernoted to Adjusted Operating Loss


3 Months Ended 3 Months Ended
May 31, 2007 May 31, 2006
Loss before the undernoted as reported (16,157,473) (19,187,901)
Add back non-Adjusted Operating Loss items
included in Operating loss
Amortization 5,606,096 5,252,920
Stock-Based Compensation 720,032 691,251
Costs paid by parent company 51,822 0
Adjusted Operating Loss (9,779,523) (13,243,730)


Adjusted Operating Loss
-----------------------

Adjusted Operating Loss is defined as Loss before the undernoted excluding
amortization, stock-based compensation to employees, directors, officers and
service providers, and non-cash costs paid by parent company. We believe that
Adjusted Operating Loss, as opposed to Operating loss or Net loss, provides a
better measure of our core business operating results and improves
comparability. This non-GAAP measure should be used in addition to, but not as
a substitute for, the analysis provided in statement of operations. We believe
Adjusted Operating Loss is a useful measure of our operating performance and
is a significant basis used by our management to measure the operating
performance of our business. While amortization and stock-based compensation
are considered operating costs under generally accepted accounting principles,
these expenses primarily represent non-cash current period allocation of costs
associated with long-lived assets acquired or constructed in prior periods and
non-cash employee and service provider compensation. Costs paid by parent
company are non-cash costs related to the licence application process and are
not related to ongoing operations of the business. Adjusted Operating Loss is
a calculation used as a basis for investors and analysts to evaluate and
compare the periodic and future operating performances and value of similar
companies in our industry, although our measure of Adjusted Operating Loss may
not be comparable to similarly titled measures of other companies. Adjusted
Operating Loss does not purport to represent operating loss or cash flow from
operating activities, as those terms are defined under generally accepted
accounting principles, and should not be considered as an alternative to those
measurements as an indicator of our performance.


Canadian Satellite Radio Holdings Inc.
Interim Consolidated Statement of Cash Flows (Unaudited)


Three months ended Nine months ended
May 31, May 31,
2007 2006 2007 2006
$ $ $ $
Cash provided by
(used in)

Operating activities
Net loss for the
period (13,268,201) (20,403,606) (64,254,018) (78,971,770)
Add (deduct):
Non-cash items
Costs paid by
parent company 51,822 - 151,833 2,862,764
Stock-based
compensation
expense 720,032 691,251 2,407,573 22,935,797
Amortization of
intangible
assets 4,820,642 4,601,802 14,464,695 9,289,276
Amortization of
property and
equipment 785,454 651,118 2,345,932 1,154,954
Accrued interest
- debt 3,625,781 (460,000) 3,637,928 (460,000)
Accrued interest
receivable (275,032) - (1,000,624) -
Amortization of
deferred
financing costs 172,500 - 517,500 -
Interest
accretion expense 8,814 5,470 26,142 21,879
Unrealized
foreign exchange
gains (6,279,858) (1,083,296) (2,461,028) (1,793,087)
Net change in
non-cash working
capital related
to operations 2,472,975 (3,252,145) 9,479,580 (4,428,400)
-------------------------------------------------------

Net cash used in
operating
activities (7,265,071) (19,249,406) (34,684,487) (49,388,587)
-------------------------------------------------------

Investing activities
Restricted investments - - (41,015,595)
Payment of interest
from restricted
investments - - 7,458,750
Purchase of short
term investments - (5,850,000)
Purchase of property
and equipment (123,248) (590,830) (1,464,960) (20,337,412)
Purchase of computer
software (176) (520,088) (78,191) (5,934,363)
-------------------------------------------------------

Net cash used in
(provided by)
investing
activities (123,424) (1,110,918) 65,599 (67,287,370)
-------------------------------------------------------

Financing activities
Initial public
offering - net of
issuance costs - - - 50,042,354
Shares issued to
CSR Investments - - - 15,000,000
Deferred financing
costs - (600,000) - (5,245,471)
Proceeds from
long-term debt - - - 115,420,000
-------------------------------------------------------

Net cash provided by
financing activities - (600,000) - 175,216,883
-------------------------------------------------------

Foreign exchange
losses on cash held
in foreign currency (742,834) (1,094,720) (272,348) (1,598,540)
-------------------------------------------------------

Change in cash
during the period (8,131,329) (22,055,044) (34,891,236) 56,942,386

Cash - Beginning
of period 18,428,307 78,997,450 45,188,214 20
-------------------------------------------------------

Cash - End of
period 10,296,978 56,942,406 10,296,978 56,942,406
-------------------------------------------------------
-------------------------------------------------------

Supplemental cash
flow disclosures
Rights acquired
through issuance
of shares - 14,740,988 - 245,152,988
Property and
equipment purchases
in accounts payable - 561,642 - 561,642
Computer software
purchases in
accounts payable - 914,045 - 914,045
Prepaid advertising
purchased through
issuance of equity - - 2,000,000
Additions to property
and equipment and
long-term obligations
for asset retirement
obligations - - 512,873




For further information

For investor information, please contact: (416) 408-6899, investor.relations@xmradio.ca
For media information, please contact: Wilcox Group, (416) 203-6666, XMradio@wilcoxgroup.com

Source: Canadian Satellite Radio Holdings Inc.; XM Canada

http://biz.yahoo.com/cnw/070716/xm_canada_q3_results.html?.v=1

NAB concedes that XM/Sirius are "winning the war of words"
Wednesday, June 27, 2007 at 10:40 PM
Filed under: XM Sirius Satellite Radio Merger NAB
In a recent email sent to its members, the NAB has conceded that supporters of the XM/Sirius merger "are winning the war of words at the FCC."

Citing Siriusbuzz's FCC Comment Scorecard, the NAB asked their members to not let their members "win the war of words" and to "submit comments to the FCC opposing the merger!"

The NAB even said they are "working hard to derail the merger" but even so, they asked members to "enlist station personnel, friends and family" to aid their cause.

As of June 22nd, nearly 2,600 comments have been filed to the FCC regarding the Sirius-XM merger, and over 2,000 are in favor of it.

If you would like to submit your comments to the FCC, you can do so through the easy to use forms located on both XMmerger.com and SIRIUSmerger.com. They are definitely far easier to use than the FCC's own form.

By: roybean3
18 Jun 2007, 06:22 AM EDT
Msg. 157733 of 157736
Jump to msg. #
THE HAZIETT REPORT on merger .
http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6519527923
paste and click

Hex: that makes sense. Even if the merger takes place it will be a battle but an easier one.imo

Of Course. The possible reason that the FCC started the clock could be that they have inside knowledge that the DOC is going to approve the merger. I think they probably were waiting for the DOC information.

Hex: so what is your latest thought? Is the merger still alive?


TIA

Sirius Calls Merger ‘Uphill Battle’
TWICE Daily E-mail Update
By Amy Gilroy -- TWICE, 5/24/2007 9:21:00 AM

New York — Sirius Satellite Radio CEO Mel Karmazin told shareholders this morning that the Sirius/XM Satellite Radio merger is an “uphill battle.”

While stating that he continues to believe the merger merits approval by government regulators, Karmazin admitted that Wall Street estimates there is an “80 percent likelihood that the merger is not going to happen.”

This contrasts with a comment earlier this month by XM CEO Hugh Panero stating, “We continue to believe we will ultimately receive the necessary approval to continue with the merger.”

Karmazin’s remark came one day after Senator Herb Kohl, the chairman of the Senate subcommittee on Antitrust, Competition Policy and Consumer Rights wrote a letter to the Justice Department and the Federal Communications Commission (FCC) stating that a Sirius/XM merger “would cause substantial harm to competition and consumers, would be contrary to antitrust law and not in the public interest, and therefore should be blocked by your agencies.”

Karmazin addressed the comment generally by saying, “There are some people out there that think that any combination [merger] is bad.” He also noted in response to a shareholder question, that “the NAB is a very powerful lobbying organization and we are a relatively small company. We are fighting a very well-oiled lobbying organization in the NAB.”

Sirius and XM maintain that the merger would not constitute a monopoly because both companies compete with terrestrial radio as well as MP3 players, cellphones and other technology.

Karmazin asked during today’s shareholder meeting why the National Association of Broadcasters (NAB) cares about the merger of Sirius and XM if radio is not competing with satellite radio. “Why are they hiring John Ashcroft and hiring all these advisors? It’s simple — because we do compete with them. They believe that if we combined, our company would be better, it would be stronger.”

When a shareholder asked about the ties that some members of Congress have to broadcasters, Karmazin replied that many members of Congress “have unique relationships with their local radio station. If you think of the Congressmen and Senators in every market of the country, there’s a local radio station that covers their speeches.”

Karmazin also responded to shareholder questions about the future position of Sirius if the merger is not approved. He said, “Our business model is very much on track. I believe not only are we going to not be out of business, we’ll be a very successful profitable company down the road.” He also noted that Sirius and XM “could have gone to the government and said, satellite radio has two companies that may not make it” and “Wouldn’t it be better to have one company makes it?” But both XM and Sirius felt that this was untrue, he stated.

As of the first quarter Sirius had spent $5 million on the merger and XM had spent $8 million, said the companies.

NPD Data out for April:

http://satellitestandard.blogspot.com/2007/05/april-2007-npd-data-released.html

Blue type stocks? I like ACAS and ALD but they are long term holdings of mine for many years. Depends what you like they are good yielding and ACAS has grown its dividend by 5-8% for a long time. Plus the principle has grown a lot. I got it at $23 and it paid me back then 10.5% today it is around $46 and pays 7% so it is like 14% divs based on my original investment and the principle has doubled.

I also have penny stocks for quick gains (or loses lol)

Trade, you seem like a savvy investor. You have any picks in mind that would be a double during the summer? I want to find something that will let me work my business without baby sitting it.

Looking from a business prospective. I can see the merger as viable. I kinda of thought the government would be naive of that angle. lol

blue: to start with I didn't think it possible, but the companies seem very positive on it. Initially I didn't think so due to the huge initial government hurdle of a duopoly being put up, it was so very major to start with that the Govn't very nearly said no. It said yes, but insisted they develop radios which could take either service. Hmmm that is what they are saying now they will have. If XM goes BK or Siri it leaves a monopoly regardless so I look at the merger as quite possible now.

I agree there, I think if they wait it out xm would go under. Do you think the merger will go through?

Blue: Mel K should do well he has a great history. XM needs programing help. I think they will merge since the # of subs is finite and it seems insufficient for 2 companies to make money with at this point

Thanks, I have been watching these companies for last few years now and I just curious where sub # are at. Siri will win in the end, just figuring out where to pile on. I was hoping they would of passed them up by now.

Bluebird: imo open the real story is at what % rate each of the last 6 quarters has Siri vs XMSR gained subs the At what rate increasing or decreasing have they moved the SAC costs.

That imo tells who is making or losing ground as a trend.

BOL

Hey no problem. I also have a free account. You should be able to do the same I. Not sure what the problem is. cul

Thanks for your help, I ended up finding it a different way. I don't have the options on this site. lol Saving money. Anyway I wanted to find out what the Subs difference between XMSR and SIRI. About 1.5 million difference.

It's in the latest 10K. Click: XMSR Quote/Level II-News-Quote-Chart, click SEC filings, click the Word doc for the last 10-K, control-F to find, enter subscribers search and next down to the executive summary. There you will find your fish....

How many total subscribers does XM have. Couldn't seem to pinpoint it. Thanks in advance..

Hex I can't imagine it harming the SP regardless. There doesn't appear enough Subs for two out fits and it appears like it would require a heck of a lot more before they really hit sound fundamental earnings yoy

http://satellitestandard.blogspot.com/2007/05/regulatory-analysts-bullish-on-sirius.html

Thursday, May 10, 2007
Regulatory Analysts Bullish On Sirius and XM Merger
May 10, 2007
Tyler Savery

There is a lot of opinion on the street relative to the proposed merger between Sirius and XM. Opinions vary greatly and this can make it difficult for investors to digest what is likely to happen. One way to wade through all of the opinion is to seek out analysts who follow the regulators on a regular basis.

In an article published by Communications Daily the sentiment on the merger seems more bullish than the opinions of analysts that follow the equities proper.

ARTICLE EXCERPTS:

Regulatory Analysts Bullish on Satellite Radio Merger Approval
Communications Daily

FARMINGTON, Pa. -- Analysts who mainly follow regulatory issues said at the annual FCBA seminar they disagree with colleagues who expect DoJ or the FCC to reject the XM-Sirius merger. Blair Levin of Stifel Nicolaus said N.Y.-based analysts may be misreading the regulatory tea leaves. Anna-Marie Kovacs of Regulatory Source Assoc. and George Reed-Dellinger of Washington Analysis agreed that regulators are likely to approve the satellite radio merger.

"The 3 of us are in the minority on Wall Street," Levin said: "One of the more compelling arguments for the deal to go through is that the terrestrials have 3G. There's a lot of competition in the mobile audio market coming online." Some analysts may read too much into tough questions from Congress and a few negative comments at the FCC, Levin said, adding that DoJ will be key to whether the merger proceeds.

"I'm surprised so far I've not seen a lot of congressional resistance to the deal," Kovacs said: "I had expected a great deal more... It is looking better at this stage than I would have initially expected."

"I think XM-Sirius does get through," Reed-Dellinger said: "I think $3 billion to $6 billion of synergies will buy you a lot of conditions at the Commission." Likely conditions include rate caps and a requirement that the combined company offer programming a la carte, he said.

Programming is the likeliest focus of regulatory conditions, Levin told us.
"There'll be conditions dealing with indecency,² he said: ³That means either a family friendly tier or a la carte, some way in which people who want to buy a tier of programming without anything that anyone would consider indecent are able to do so. Second is a la cart on its own, which is not related to indecency but rather is related to the question of consumer choice."

Regulators also likely will strengthen restrictions against local programming, he said. The FCC will set a public interest programming condition, Levin said: "Finally, there's a series of things that one might think of as cleanup items -- the interoperability of devices." Levin doesn't expect regulators to require the merged company to sell spectrum, he said: "If you believe there's a broader market, you don't need the spectrum divestiture. If you don't believe it, the spectrum divestiture won't help you."

Reed-Dellinger said investors should be looking hard at the 2008 election.

"Every investor out there ought to be contemplating the likelihood of a Democratic FCC" and the implications for future mergers, he said. "2009 is really big," Levin said, predicting a govt.-wide shift from the post-9/11 focus on homeland security: "The govt. intervention in the marketplace in the first 6 months of 2009 will be more significant than at any other time in recent memory."

Reed Dellinger, which SSG has written about before specializes in following the regulatory process. Their focus on the value of the synergies seems to indicate that there is more than enough room for regulators to get some items they want without the companies giving up the farm to get the deal done. Another interesting comment regarding the election could help investors understand the timeframe involved. While not scientific in nature, it is my opinion that the process will get through the DOJ portion in the late September to October timeframe. I just don't see much action happening after Thanksgiving, and I can see regulators doing the bulk of their decision process late summer and early fall, with a goal of having their work complete before the holidays.

Position - Long Sirius, Long XM




5/10/2007 09:16:00 AM

Why Satellite Radio Will Succeed
By Rick Aristotle Munarriz
May 9, 2007

Perhaps like you, I was drawn to Rich Duprey's "Why Satellite Radio Will Fail" article like a moth to a flame war. Even though my once-bullish perspective on satellite radio has started to fade of late, I wasn't ready to suit up as a pallbearer for the heavy coffins of XM Satellite Radio (Nasdaq: XMSR) and Sirius Satellite Radio (Nasdaq: SIRI).

Sure, growth is decelerating. It's a challenge to sign up boatloads of new gross subscribers while membership churn cycles result in fewer net additions. Emerging technologies are hitting close to home. The satellite-radio promise has fallen short in many ways, but death isn't the inevitable destination.

Satellite radio can't die. Common sense won't let it happen.

You, me, and Duprey:
I have to credit Rich for choosing his daggers well. Too many critics knock the red ink, decaying growth rates, and cash burn rates as reasons to eulogize. My sharp fellow Fool -- and we've both been Fools for a long time -- went for the jugular in knocking the quality of satellite radio.

Nice shot. If something isn't very good, folks won't pay a premium for it. If someone is going to invest in a receiver and pony up as much as $13 a month for access, it had better be pretty good.

Rich boiled his bearish case down to satellite radio's shortcomings as a pay service:

Limited playlists.
Annoying DJs.
Lousy reception.

I have been a Sirius subscriber since 2004 and an XM subscriber since 2006. Like Rich, I went with Sirius in anticipation of Howard Stern's eventual arrival. However, when I bought a General Motors (NYSE: GM) car last year, I went for the 90-day XM trial and had to renew. With the Ron and Fez show in the afternoon, the better selection of comedy channels, and the ability to track live baseball scores, I was hooked.

Are the playlists limited? It's by design on some stations. However, the very nature of commercial-free music channels means that you are going through more tracks in any given hour than you would with ad-packed terrestrial radio. Would you rather hear less Hinder and The Carpenters if it meant wedging in commercials? I doubt it.

As for annoying DJs, I'll agree that they can get a bit chatty, especially on Sirius. Sometimes the hosts are the main attraction, like the raspy Wolfman Jack or the surprisingly provocative Bob Dylan. Still, there are several channels -- on both XM and Sirius -- that lay off the disc-jockey filler. Each service has about 70 music stations, so it's easy to find the genre you want, served up the way you want it.

As for the lousy reception, I know it's not perfect. Satellite radio has grown at the automaker level and languished at the retail level, because home-based systems can be tricky when it comes to getting a strong signal. Premium cable and satellite television are built for the home, though satellite radio has the road-warrior commuter at heart with its in-dash receivers and edgy portable devices.

As a radio junkie, I know that I can't take a long road trip without my satellite radio. Pre-satellite radio, I suffered through repetitive mix tapes and stations that were only good for a hundred miles or so. Sure, companies like Apple (Nasdaq: AAPL) and SanDisk (Nasdaq: SNDK) are putting out great digital-music players that provide variety without having to juggle CDs, but they lack the spontaneity of live radio.

The long road to success:
It's easy to paint the merger between XM and Sirius as a lose-lose situation. If the deal is nixed, it will force the companies to continue to bleed red over redundant operating costs and cutthroat marketing expenses. If the deal gets approved, it's because the regulatory hurdles were cleared after the introduction of new technologies -- like Slacker or the Wi-Fi-enabled pairing of SanDisk and Yahoo! (Nasdaq: YHOO) -- that proved to be satellite-radio moat obliterators.

I prefer to see things a different way. Many of the original threats to XM and Sirius appear to be fading away. Remember when it was Internet radio and the iPod that would spell the end of satellite radio?

What happened? Go to Live365.com, and you will be prompted to go to SaveNetRadio.org to voice your displeasure over the high royalties that will be coming due this summer. These may very well drive small webcasters out of business, dramatically whittling down your choices there.

The iPod is still a force, of course, but no collection of digital music and podcasting will supplant satellite radio. Now that legal downloads are cool again, it's an easier value proposition when you stack 13 new iPod tunes against a month of unlimited satellite radio. Sure, music-subscription services like Napster (Nasdaq: NAPS) offer a competitively priced smorgasbord of music, but where is the marquee spoken talent?

There is a reason why Stern moved to Sirius and Oprah Winfrey went to XM. Satellite radio is the only talk format that can pay their salaries. Sure, syndication through terrestrial radio works for many mainstream celebrities, but what about the future? If radio fans continue to flock to satellite radio and portable media players, terrestrial radio won't be able to pay its stars for too much longer. Sure, Don Imus will eventually wind up on satellite radio because he doesn't have much of a choice, but others will ultimately migrate to the platform that can offer financial security.

It's the network effect in all its glory. Celebrities will flock to XM and Sirius because that's where the money is. Fans will come over because it's where the stars are. You saw it happen in television. The transformation has proved to be a bit bumpier in radio, but failure is not an option. Success is inevitable.

http://www.fool.com/investing/general/2007/05/09/why-satellite-radio-will-succeed.aspx

10-Q: XM SATELLITE RADIO HOLDINGS INC
06:10 a.m. 05/03/2007 Provided by
(EDGAR Online via COMTEX) -- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read together with our unaudited Condensed Consolidated Financial Statements and accompanying Notes in Item 1. to Part I of this Form 10-Q, and with our Management's Discussion and Analysis of Financial Condition and Results of Operations and audited Consolidated Financial Statements, included in our Annual Report on Form 10-K for the year ended December 31, 2006 filed with the SEC on March 1, 2007.
Proposed Merger
On February 19, 2007, XM and Sirius Satellite Radio Inc. ("Sirius") entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which XM and Sirius will combine our businesses through a merger of XM and a newly formed, wholly owned subsidiary of Sirius (the "Merger").
Each of XM and Sirius has made customary representations and warranties and covenants in the Merger Agreement. The completion of the Merger is subject to various closing conditions, including obtaining the approval of XM's and Sirius' stockholders and receiving certain regulatory and antitrust approvals (including from the Federal Communications Commission ("FCC") and under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended).
We filed a Notification and Report Form pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("the HSR Act"), with respect to the transactions contemplated by the Merger Agreement between XM and Sirius. On April 12, 2007, both we and Sirius received from the Department of Justice requests for additional information and documentary material relating to the merger, generally referred to as a "Second Request." The effect of the Second Request is to extend the waiting period imposed by the HSR Act until 30 days after we and Sirius have substantially complied with the Second Request.
On March 20, 2007, we and Sirius filed a Consolidated Application for Authority to Transfer Control with the FCC with respect to the Merger Agreement. We anticipate that the FCC will issue a public notice in the near future that sets a schedule to comment on the Merger. The public notice will trigger a comment period followed by a reply period.
Executive Summary
We are America's leading satellite radio service company, providing music, news, talk, information, entertainment and sports programming for reception by vehicle, home and portable radios nationwide and over the Internet to over 8 million subscribers to date. Our basic monthly subscription fee is $12.95. We believe XM Radio appeals to consumers because of our innovative and diverse programming, nationwide coverage, many commercial-free music channels and digital sound quality.
Our channel lineup includes more than 170 digital channels of choice from coast to coast. We broadcast from our studios in Washington, DC, New York City, including Jazz at Lincoln Center, Chicago and the Country Music Hall of Fame in Nashville. We have added new and innovative programming to our core channel categories of music, sports, news, talk and entertainment. Also included in the XM Radio service, at no additional charge, are the XM customizable sports and stock tickers available to users of certain receivers and other online services.
Our target market includes the more than 240 million registered vehicles including the 16.5 million new cars sold each year as well as the over 110 million households in the United States. In addition, some of our recent and upcoming product offerings focus on the portable and wearable audio markets. Broad distribution of XM Radio through new automobiles and through mass market retailers is central to our business strategy. We are the leader in satellite-delivered entertainment and data services for new automobiles through partnerships with General Motors, Honda/Acura, Toyota/Lexus/Scion, Hyundai, Nissan/Infiniti, Porsche, Suzuki and Isuzu and available in more than 140 different vehicle models for model year 2007. XM radios are available under the Delphi, Pioneer, Samsung, Alpine, Audiovox, Sony, Polk and other brand names at national consumer electronics retailers, such as Best Buy, Circuit City, Wal-Mart, Target and other national and regional retailers. These mass market retailers support our expanded line of car stereo, home stereo, plug and play and portable handheld products.
Operational Highlights
We summarize our business growth and operational results through the metrics of subscriber growth, revenue growth, ARPU, SAC, CPGA and Adjusted operating loss (formerly referred to as Adjusted EBITDA).
Table of Contents
Total revenue increased from $208.0 million in the first quarter of 2006 to $264.1 million in the first quarter of 2007, a 27% quarter over quarter increase.
Average monthly subscription revenue per subscriber (ARPU) increased from $10.07 in the first quarter of 2006 to $10.15 in the first quarter of 2007.
Subscriber Acquisition Costs (SAC) increased from $59 in the first quarter of 2006 to $65 in the first quarter of 2007, which included inventory charges that represented approximately $6 per gross connect.
Cost Per Gross Acquisition (CPGA) increased from $93 in the first quarter of 2006 to $103 in the first quarter of 2007, which included inventory charges that represented approximately $6 per gross connect.
Adjusted operating loss decreased from $48.9 million in the first quarter of 2006 to $27.0 million in the first quarter of 2007.
Other Highlights
Sale-leaseback - We entered into a sale-leaseback transaction of the transponders on the XM-4 satellite, which provided us with an additional net $245 million in liquidity

Hex I would want to get in within 2 days of the R/S announcement, I think that would be a wonderful thing for these two and result in a stock disproportionately higher than the split justifies.
Siri has wayyyyyy tooooo many shares and xm has quite a few now as well. My sense is that a 10 for 1 R/S would be dynamite short term and then fundamental need to take over.

Hex nothing is guaranteed (other than the 2 things we know of). My sense is though that since neither company has made money they need to tightly control expenses and grow concurrently. The merger will likely reduce expense, and grow but it is merely the (total)expense of running 2 companies

Redundancy. If they eliminate redundancy it would cancel out the double expense.

I was wrong the Alacatel Lucent merger is worse because both companies never had a real product or service, and IMO they still don't. At least XM and SIRIUS do have a service with real customers, not selling within their entities like ALU...

Of course, after the merger a R/S usually happens. This is what happened to ALU. I will be long gone by then..

Gotta get back to work. I work for a living.

cul

Hex nothing is guaranteed (other than the 2 things we know of). My sense is though that since neither company has made money they need to tightly control expenses and grow concurrently. The merger will likely reduce expense, and grow but it is merely the (total)expense of running 2 companies.

I wish one demonstrated they can be profitable prior to adding subs to a weak structure.

I also wonder if you would not get an R/S since this would likely be done with stock not cash.imo

Hi T2M- I agree about the merger. Personally I think it's a ploy by Mel to keep SAT Rad in the lime light because he knows this is the year of change for the better. They want the PPS to be more volatile to create momentum with new plays and not just the same old MMs trading back and forth with newer lows as the days go by. Agree, two loser companies but they could consolidate their operations and save a bundle. Reminds me of Alcatel and Lucent merger of equals. LOL!!