Sunday, December 10, 2006

Sirius and XM Merger

So the main stream press is starting to buzz about something I predicted back in October, that is, that Sirius and XM are going to merge:

Trust me, this is not a question of if. It's simply a question of when. The fact that Sirius's sales growth is starting to slow only makes it more likely that this will happen sooner than later. (Because it becomes clear Sirius can't completely crush XM.) So if you haven't sold your Sirius stock, hold on to it. Because once these companies merge, satelite radio will be in a position to really take off.

The advantages in manufacturing one set of hardware, the savings in combining operations and not having to compete for talent are enormous. But also I think some of the hestitation in the public with adopting this new technology comes from confusion (among non-Howard fans) as to which system to buy. With that issue gone, it is simply a question, like it was in the early days of cable, as to whether you wanted it or not. With a merged company, I think you will find that the majority of people who purchase a car will go with a satelite subscription.

1 comment:

Bob Mac said...

Hoo Hoo... I invented monopolies, Robyn.