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There may not be official word yet, but it seems logical that if Sirius continues to hemorrhage capital, they're in line to be bought out by a viable company that could make use of Sirius' infrastructure, such as it is.
This brings to mind DirecTV and Dish Network immediately. Any thoughts on the feasibility or other possible suitors?
Lately I have been thinking more about his too, but I don't know much about what it would take. It seems with all the debt coming and the reduced market cap that someone with alot of money could get a good deal and clear all the debt at the same time. But Im not educated in this field so im just guessing based on reading here.
I liked someones suggestion of Verizon, Ill throw out At&t. I pick At&t because they are trying to enter the market with broadcasting to vehicles and they have a great product in At&T uverse Fiber optic tv systems, which could be great for streaming sirius xm product of which they don't have a music selection like directv and dish.
Since almost every stock, including quality stocks, have been pounded as of late I would love to see an all stock deal put together, preferqable a dividend stock. I think AT&T or Verizon would be a better choice than DTV. They have alternate distribution methods such as the 700 mhz frequency, a solid internet backbone and of course cell phones. I wouldn't mind seeing News Corp buyt the company.
The advantage of a all stock deal is the upside on the buying stock.
AT&T closed at 25.23 on Friday. If an all stock deal were announced, you would have to trade 225 shares of Sirius for every 1 share of AT&T. That means if you held a decent position in Sirius of 100k shares, you would end up with around 450 AT&T shares. Verizon closed at 29.96, which means you get even less with Verizon.
Not saying that I would not go for it, but I see it as being much easier to get a double out of Sirius than it would be to get a double out of AT&T or Verizon.
yea id like to see sirius recover without a buyout, more money to be made that way.
Quote:
Originally Posted by Newman
That's assumung the deal was done at the current price. I would think there would have to be some sort of a premium. But you are right there would be limited upside and that upside would be less than a lot of people have already lost. AT&Ts price before the current fiasco was around $43.00, a price I would assume it will see again in a couple of years