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http://www.fool.com/investing/value/...ite-radio.aspx
This is a pretty solid and interesting take on what is going on with XM right now. I had no idea that their net subs vs gross were so damn bad. What were the Sirius numbers for that same time period?
Sometimes I wonder if it is really worth Mel's effort to buy them out especially 4.6 to 1 , 2 to 1 is more like it in my book as far as actual value . I believe that the changing political landscape and the prospect that Fed approval may be harder later than now is what pushed Mel to act quickly on a deal . And the prospect of another company with deep pockets buying XM and becoming a viable competitor .
You could see that XM was in big trouble for the last year to year and 1/2 and as it stands right now there is no doubt in my mind that XM would have gone belly up within the next two years without a buyout by Sirius or someone else .
I guess it's still a good deal for Mel , Sirius and we shareholders because we don't have to worry about someone else buying that license and a steal of a deal for XM shareholders . I know that once Mel gets a hold of the whole Sat Rad pie we shareholders will be smiling broadly within a year and for a long time after !