We already saw the first projections yesterday from Sirius Satellite Radio Inc. (NASDAQ: SIRI) and XM Satellite Radio Inc. (NASDAQ: XMSR). We also saw the resounding thud that the markets greeted the company’s with.
What is interesting is what is going to happen to costs cuts not just at the base level. We have been trying to calculate the future values, which are very different from the values of 2005, regarding the content from the top talent that both XM and Sirius have generated.
The first such talent question boils down to Howard Stern with his lavish contract. It is 100% attributable that he did garner much of the growth of Sirius. But Sirius has also lost money every quarter along the way. What about Martha Stewart or Oprah? Fortune has a similar piece discussing the contract cost ramifications of a combined Sirius-XM with its top talent.
We already know that the companies have to refinance their existing debt. And Goldman Sachs isn’t alone in believing new monies have to be raised.
The time for this merger to close and get consummated has finally come. Unfortunately there are still more questions than there are answers.
Jon C. Ogg
July 1, 2008
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
