|
|
 |
|
|
|
Analyst: Sirius Better Positioned Than XM If Satcasters Don't Merge
NEW YORK -- May 15, 2008: In a report Thursday, Barrington Research analyst Jim Goss said Sirius Satellite Radio is in a better position than XM Satellite Radio to become profitable sooner if the companies aren't ultimately allowed to merge -- but he still believes the long-pending merger will be approved.
The Department of Justice gave its OK to the XM-Sirius merger in March, and Goss said in a report on Sirius, "We continue to believe that the FCC will likely approve the merger, although the time frame remains unclear." But, he wrote, "if the merger is blocked or the approval language contains unacceptable conditions, we would continue to favor Sirius as the better standalone operator." Goss says Sirius is "better positioned" than XM "to achieve profitability in a shorter time frame with relatively less downside risk." He keeps his "outperform" rating on Sirius' stock.
In a report on XM, Goss notes that XM CEO Nate Davis said on the company's first-quarter earnings call last week that he hoped it would be XM's last call as a standalone company. Goss reiterates that he believes the merger will likely be approved but adds, "In the event that this does not occur, we feel some risk would exist in the stock." He keeps his "market perform" rating on XM.
In a report on
Comment on this story
E-mail this story to a friend
Sign up for Radio Headlines
|
|
|
|
|
|
|
From the Publisher
|
|
|
