After months of speculations, the CFO of Sirius has simply come out and said that putting the two satellite radion companies together would be good for shareholders and consumers. It would also allow for significant cost savings.
With slowing subscription grwoth rates and $2.3 billion in debt between them, the savings could be critical and would amount to several hundred milion dollars a year according to 24/7 Wall St. analysis.
Perhaps one of the largest obstacles to a merger would be the percent of the combined entity that each company’s shareholders would own and which management group would stay to run the new company.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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