Sirius is at 5 because its subscriber base, revenue streams and market penetration is less than half of what XM has. Couple that with a much heavier debt load and a business plan that hinges entirely on Sirius's success with getting people to pay to listen to Stern. Something that didn't work for XM when they did the same thing for O&A.

I heard a rumor the other day that XM eventually plans to buy out Sirius. Anyone else heard anything similar to this?

I heard a rumor the other day that XM eventually plans to buy out Sirius.  Anyone else heard anything similar to this?

 

 

I heard the opposite. XM went after Mel Karmazan hot & heavy when he left Infinity... he went with Sirius. Apparently there are some serious financial backers who are going to make a play for XM in November. Another reason why I didn't buy either yet as I was waiting for Howard anyway.. and MLB will likely end up on there also.

XM is the stronger brand and will most likely survive. They may be in play by a bunch of other companies because they are the ones with the best shot of survival.

 

I'd roughly estimate long term success of XM at about 75-85%, Sirius is about 50/50. They really leveraged a lot to structure Howard's contract and it will really bite them in the ass if they continue to go ad free. 11 dollars a month isnt revenue stream enough.

XM is the stronger brand and will most likely survive. They may be in play by a bunch of other companies because they are the ones with the best shot of survival.

 

I'd roughly estimate long term success of XM at about 75-85%, Sirius is about 50/50. They really leveraged a lot to structure Howard's contract and it will really bite them in the ass if they continue to go ad free. 11 dollars a month isnt revenue stream enough.

XM isn't going anywhere. If anyone gets bought out it will be sirius. Their have been quite a few rumors about this but that all cooled down a month or two ago. XM is by far and away the more sucessful company. They have better sattelite coverage, and a hell of a lot less debt. Sirius has really thrown a lot of money around, especially in Howard Stern, banking on it paying off and its highly unlikely that it will.

 

Sirius does have good programming though but they also don't have near the power XM does. XM is standard in quite a few automobiles while Sirius is Chrysler and possibly Ford XM is in most of the japanese car companies as well as all GM products (since GM owns it).

GM owns a piece of XM. It's earning potential and relative stability in the new field would seem to make it a much more attractive acquisition target.

 

Of course, I know nothing about finance and can barely afford the rent on my one bedroom apartment, so your mileage may vary.

Sirius has really thrown a lot of money around, especially in Howard Stern, banking on it paying off and its highly unlikely that it will.

 

 

Its highly unlikely, how do you figure? The guy has like 10 million listeners, and who knows how many once he can be heard everywhere. And his fans are very dedicated....like me...I'm up and running and ready to go.

Sirius does have good programming though but they also don't have near the power XM does. XM is standard in quite a few automobiles while Sirius is Chrysler and possibly Ford XM is in most of the japanese car companies as well as all GM products (since GM owns it).

 

 

They are offering Sirus in the '05 Vettes...