How will stock be affected?

Question

How would a merger between Sirius Sat Radio and XM Sat radio effect Sirius stock worth?

Answer 1

It depends a great deal on what the details of the merger were. One thing that it of course would do is eliminate the competition, which would be somewhat of a good thing. But if the merger were to cause significant stock dilution, it would not be too good.

Neither company is in too good of shape so there would always be the possibility that all a merger would do is more rapidly lead to the merged company filing for bankrupcy.

Answer 2

Stock will rise and fall quick.