Sirius (SIRI) Deal With XM (XMSR) Heads For The Barn

Media

Published: March 21, 2008 6:54 am

The FCC says it is getting closer to announcing its opinion of the Sirius (NASDAQ: SIRI) merger with XM Satellite (NASDAQ: XMSR). That may not be good news. The commission may turn the deal down.

According to The Wall Street Journal FCC boss Kevin Martin said "he had asked his staff to draft a document incorporating a variety of possible outcomes for the merger proposal."

In the case of the merger, no news is bad news. Aside from the likelihood that a long review may be a result of the FCC and Justice Department building a case again the deal, over the last year the finances of both companies have gotten worse.

In the last quarter, the subscriber growth at XM and Sirius slowed. Both lost money and face tremendous debt service. Each company has more than $1 billion in long-term debt on its balance sheet.

If the merger gets killed, one of the companies may not make it. The balance sheet and P&L problems are just that tight.

Douglas A. McIntyre

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.