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Technology Stocks : Sirius Satellite Radio (SIRI)
SIRI 20.51+2.6%Jan 2 9:30 AM EST

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To: sixty2nds who wrote (4458)6/5/2006 4:42:45 PM
From: rrufff   of 8420
 
The devil is in the details for any prospective merger, as is typical.

1) Is the technology compatible? I had read that it wasn't but that was years ago and perhaps that's not true today.

2) Valuation - given SIRI's premium valuation, XMSR likely would be giving up control in a merger and admitting, in essence, that management had snatched defeat from the jaws of victory.

3) Capital structure and future financing costs a major benefit of any merger obviously, at least from SIRI standpoint and likely XMSR.

4) Great jobs and perks for management - that's always the key. Mel's a billionaire so he's not dependent on this, but everyone else in both companies will only go along with a merger that gives them more guaranteed perks.
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