Replies to post #2302 on Sirius XM Holdings Inc (SIRI)

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News for 'SIRI' - (Detroit Free Press Heather Newman column: CEO tells
how
Sirius-XM merger would work)


Feb 21, 2007 (Detroit Free Press - McClatchy-Tribune Business News via
COMTEX)--Sirius Satellite Radio and XM Satellite Radio hope to merge,
but the
channelsthatsubscribers get probably won't broaden immediately.

Company executives spelled out more details about the proposed merger
betweenthetwo satellite radio companies in a news conference Tuesday.
Here's what
youneedto know as a current (or future) customer:

QUESTION: How is the merger possible? Doesn't it create a
monopoly?ANSWER: In the sense that one company would control both of the satellite
radiolicensesin this country, yes. The Federal Communications
Commission prohibited
one company from owning both licenses when they were originally sold 10
yearsago,and that may be a significant roadblock to the merger.

Officials for the companies said they feel that competition from
terrestrialradio,MP3 players and other audio entertainment sources
provides the necessary
checks and balances to pass antitrust regulatory hurdles."Consumers
have a huge array of choice," Sirius chief executive Mel
Karmazinsaid.Q: Will prices change if the merger goes through?

A: Probably not right away. While the companies will see a dramatic
reduction incostsdue to consolidating, they've got a lot of debt to
make up.

Q: Will my channels change before the merger?A: No. Programming and
radios will remain the same until a merger is
approved.Q: Will my channels change right away after the merger?

A: Yes, most likely. Company officials said that some programming that
wasexclusiveto one service or the other (Howard Stern, for example, or
Oprah
Winfrey) might become available on both.In the long term, the company
hopes to replace current radios with ones
thatreceivetransmissions from both services, enabling them to expand
the number of
different channels they offer by eliminating those that are
essentiallyduplicatedbetween the two lineups.

Q: Will satellite radio still be built into my new car?A: Yes. It's
telling that in the proposed new board of directors,
representatives from General Motors and Honda would both have
seats."Our radios will be smaller, lighter, simpler and cooler than what each
companyhastoday," Karmazin said.

Q: Why do the companies want to merge?A: Other than controlling the
market? They're losing boatloads of money.
Neitherservicehas officially posted a profit. While subscribers over
the last 10 years
have grown strongly, sales have been flatter recently. And there are a
ton
ofredundancies,as they like to say in the business world, between both
services:
hardware, channels and departments that do identical things.Contact
HEATHER NEWMAN at 313-223-3336 or [e-mail].


By Heather NewmanCopyright(c) 2007, Detroit Free Press

-0-SUBJECT CODE: DE



Source: Comtex Wall Street News

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Cramer said that this merger will be passed today. We shall see.

[GAINSEEKER]

I agree with you 100%, because I can not believe that both companies would make such announcement without talking first to the people that are in charge of the Department of Justice and the Federal Communications Commission.
Obviously they cannot make any positive comment directly or indirectly to shareholders and market alike, without going to the proper procedure and accordingly to the law, so it won’t look bad to others that the same merger was prohibited.
Moreover, the previous chief of FCC have already given a live TV report saying that he sees no problem what so ever and that he don’t believe that the people that are currently in charge of FCC will find any prohibition or arbitration to the merger and that they will reach the same conclusion as him and will rule it OK to go with the merger.
However, he also noted that the procedures and the whole process must go thru the same step-by-step that all others mergers went thru and this will have to go the same way in order that all steps prior to the merger are followed and complied with, it will take time, but it will sure go thru, he also mentioned that it will happens before the year ends.
Come on folks, do you think that after his comments and with his experience on the field he do not know what he was saying and that the current FCC chiefs have not already reach the same verdict in regards to the merge.
As per my analyst comments, this is just a very clever choreograph show, then booooooommmmmm, they will come with the news that they found no road block to stop or prohibition to the marriage of the companies and that the merge is clear and they can go ahead with the process.
Then Sirius and Xm will go to the moon, at this point in time and this is just an speculation, I firmly believe that at this very moment they are allowing and holding their positions in order to make the shares of both Co. to fall a little more and that they are at this stage loading up their cart with a cheap price entry point to sell at higher price after the news explode into the market.
Therefore, I also see at least 25 dollars or more at the end of the year, but as mentioned previously, my analyst had already told me that this is a clear 25 target and even beyond that and if all goes thru a 50 will still be a cheap entry point to get into this satellite that is about to go to a very high orbit.