“SIRIUS continues to focus on excellence in programming and solid execution of our business plan,” said Mel Karmazin, CEO of SIRIUS. “Over the last year, we generated $100 million in new revenue, increased our share of satellite radio net subscriber additions by 24 percentage points and reduced our SAC per gross addition by 23%. SIRIUS has never been in a stronger position heading into the key fourth quarter holiday season, with exciting new products, compelling programming, and strong relationships with our retail and exclusive OEM partners. We are well prepared to meet fourth quarter demand and remain focused on achieving positive free cash flow.”
When asked about the possibility of a deal with XM Satellite Radio, Karmazin said that while he believes “there is value creation by putting two companies together,” he then goes on to say “I’m interested in building a long-term value for our company and am open to anything that’s in our shareholders’ best interest but, we don’t need to do a deal, and don’t know if we ever will do a deal.” Which goes solidly along with his quote in his Q3 call “You should assume that we will be looking to kick their ass, in the fourth quarter.”
XM Satellite Radio and SIRIUS Satellite Radio have made the long awaited announcement that they have entered into a definitive agreement, under which the companies will be combined in a tax-free, all-stock merger of equals. The newly formed company will have an estimated value of approximately $13 billion, which includes net debt of approximately $1.6 billion.
According to Mel there will be a “significant discount” once the companies do finally merge. When asked what’s “significant discount,” $10 or $2? Mel responded with “it looks like closer to $10 than $2.”
I am no genius but, I did the math and that means at least a $6 drop in the current subscription price. If we take what Mel is saying to heart and this new company can offer the same kind of great programming we have be enjoying for only $6.95 per month, the public is going to have no excuse to not make the change.
... I could continue posting articles and links but then this post would be loooooong.... You can search all of them here:
Newman - Are you still sure Sirius will be FCF positive this year ? Why ?
Does everyone still think Mel will do the right thing and defend the best interests of the shareholders ? Why ?
It is funny how he "under promises" and "over delivers" huh ? or is it "over promises" and "under delivers" ? lol.