2006-12-19 09:06:58 · 5 answers · asked by BELGICO F 2 in Business & Finance ➔ Investing
Let's look at the basics. Sirius (SIRI) is selling for about $3.73 recently and has a market capitalization of some 5.24 billion, total assets somewhere around 2 billion and debt of about 1.6 billion. XM (XMSR) is selling for about $15.90 recently and has a market capitalization of about 4.26 billion and total assets around 2.2 billion and debt of around 1.8 billion.
There are two general mergers, one of peers or one subsuming another. While SIRI is technically the bigger fish, XMSR is actually the stronger fish. (Review the KMart/Sears merger)
From the rough figures, there would be about 4+billion in assets (some are "fuzzy" like goodwill) but definitely at least 3.4 billion in debt. At the very least, expect about 5 SIRI shares to go for 1 XM/SIRI share. The XM owners will suffer a little loss for a while, even though the Sirius owners might squawk loudest at the start.
Not exactly a perfect marriage, but XM is distinctly the white knight in the process.
2006-12-19 09:24:38 · answer #1 · answered by Rabbit 7 · 0⤊ 0⤋
Satellite radio providers such as XM (XMSR) and Sirius (SIRI) was suppose to be the next big thing when first launched. After several years in the market place, it is proving to be a tough proposition. The idea of paying for radio just never caught on. Moreover, the fact consumers must buy hardware has prevented the technology from reaching critical mass. read on at http://ibooyah.com
2006-12-19 09:13:18 · answer #2 · answered by Anonymous · 0⤊ 1⤋
perfect valuable properties while? short term, the inventory cost of the corporation being offered often is going up. although, the inventory cost will flow as quickly because of the fact the merger is introduced. Or in situations like US Air and United. The inventory cost is going up while the rumor of a "achievable" merger gets out. So in case you do not already very own the inventory, you're unlikely to learn from this result. long term, it is likewise possible to make sure extra suitable valuable properties from the corporation it extremely is doing the paying for. If the acquisition complements the corporation's aggressive benefit and ability to make funds, then you definately may even see extra suitable valuable properties from this inventory. So, take your %..
2016-12-30 16:11:06 · answer #3 · answered by mccloy 3 · 0⤊ 0⤋
Normally you end up with shares in the merged company.
2006-12-19 09:12:31 · answer #4 · answered by Anonymous · 0⤊ 0⤋
U WILL GET NEW COMPANY(MERGED)SHARES
2006-12-23 04:32:01 · answer #5 · answered by udayashanker k 3 · 0⤊ 0⤋