So, like most who would read a post here, I am upset over the PPS of Sirius, but even more confused why there is no boost at all. I get the debt refinancing, the $400 million in synergies, blah, blah. Here are my thoughts, for what they are worth.
First, I think that Sirius needs to have more organic growth in content. Now with having every major sports under the Sirius umbrella, develop some type of 'Sportscenter' that can grow as Sirius' own brand. As a new media company, I think that would be a good direction to go. Of course they market Stern in this way, but they need to go further. I know that Siri couldn't look at XMSR's books pre-merger approval; however, Mel, et al, should have had ideas bouncing around. Hopefully very soon we will see these come to light.
Next, what if Siri were taken private by an equity group? Please, hear me out. I am aware from other boards that people throw out names of companies they think would buy Siri (i.e. MSFT, GOOG, etc.). I am not going there. Rather, and this is all just hypothetical, a company such as AINV (or another like it) could set a price for Siri, say between $3-5/share. Wouldn't this help by forcing shorts to cover and driving the price perhaps even higher? But, and maybe more importantly, wouldn't this allow Siri the time to get itself in order--develop the best new products (either on own or partner with another party) and create a mad media blitz. My point of all of this is that I believe this would help Siri (both company and shareholder) in the near term, and if I'm correct, would flush out the trash (shorts/certain hedge funds) to enable Siri to have a more 'fair' environment to grow (PPS, that is).
I am sorry if this rambled. I'd be interested in your thoughts. Thanks.