What does the XM Sirius Merger mean for stock holders?
Shares of both jumped somewhat today with the DOJ announcement. XM (XMSR) went up 15.5% while Sirius (SIRI) went up to 8.6%. If the deal is approved by the FCC chances are good that both XM and Sirius will jump up again. On the flip side, if it is declined by the FCC I suspect there is going to be a nasty drop. The overall picture though is that if the deal goes through, long term both sets of stockholders will profit long term…especially if they give the combined, ala cart programming. I personally have considered satellite radio for a while but I didn’t want a standard package and the channels I wanted were scattered too much over the two different providers. I would imagine there are a fair amount of people in the same boat as I am. The whole SHOULD be greater than the sum of the parts.
