I just finished up watching another episode of Mad Money with Jim Cramer and he did take a minute to throw in his two cents on Sirius Satellite. The stock market guru said that when it comes to the Sirius XM merger, Sirius is the logical choice.
Mr. Cramer went on to say that his reasoning for choosing Sirius was two fold. The way he figures it, if Sirius does merge with XM then their stock will go up. On the other hand if they are not granted the merger, Sirius will beat out XM as there is only room for one satellite radio service and again... their stock will go up.
Not to be left out, Cramer chimed in with his thoughts on the potential merger, "I can’t understand why people are protesting the merger based on the fact that it would create a monopoly." His thoughts are if the two satellite giants are not allowed to merge, only one will survive, thus creating the same monopoly people are trying so hard to prevent.
Let’s say for a second that Jim is right. Then why would Sirius even be considering this merger? I would have to guess that they are better off scooping up a few million listeners rather than letting XM fail and leaving a bitter taste in the mouths of current satellite subscribers. How many people would actually take a chance with another satellite company after leaving their current subscriptions and hardware behind? What do you guys think?