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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)

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To: Glenn Petersen who wrote (2151)2/9/2006 9:56:53 PM
From: sixty2nds  Read Replies (1) of 3386
 
11:48 XMSR XM Satellite: Color on Oprah deal (28.25 +1.64) -Update-

Oppenheimer notes that this morning, XMSR announced an exclusive 3-year deal with Oprah. They believe the deal is a strong positive for XMSR, and particularly like it because it proves that XMSR is adding strong content to what is already a technically sophisticated product line. Firm has calculated a breakeven of 145k subs based on the $55 mln cost of Oprah's deal. They believe Oprah will have no problem hitting this number given her popularity. They also think the cost of the deal is already baked into XMSR numbers, and say XMSR still expects to hit cash flow breakeven by 4Q06.
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