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Technology Stocks : Sirius Satellite Radio (SIRI) -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (6273)	2/8/2007 9:37:47 PM
From: Sirius_Rich	Read Replies (1) \| Respond to of 8420

>>>SIRI is the better known brand No doubt about it and the numbers prove it. I am glad you agree.

To: i-node who wrote (6273)	2/8/2007 11:12:07 PM
From: pcstel	Read Replies (1) \| Respond to of 8420

Still, it is inarguably the most idiotic business decision in the industry's short history and one on which SIRI has zero chance of ever breaking even. Unfortunately, simple mathematics disagrees with you. 1 Billion Dollars. Which is on the very high end of ths scale.. Over 5 years comes to 200 million a year. Each Stern subscriber pays $156 a year in revenue. So it takes 1.28 million subscribers to "break even" on the Stern contract. That's not including all of the "brand building" that Mr. Ray claims that the Stern contract brought with it. Somehow the accounting graduate can't figure this one out? Let's see what an analyst from Standard & Poors had to say about the Stern deal.. MARCH 7, 2006 Insight from Standard and Poors By Tuna Amobi, CPA, CFA We believe Howard Stern's much-anticipated debut in January, 2006, created significant brand awareness for Sirius, which should help fuel subscriber growth. Of Stern's approximately 12 million fans in terrestrial radio, the company has estimated it needs to sign up about 1 million subscribers to break even on Stern's contract, worth about $600 million over five years. We view this target as realistic and attainable, and think the robust gross additions of more than 1.2 million customers in the fourth quarter of 2005 were largely attributable to Stern's switch to Sirius. So let's see... Sirius says the break-even is 1 million at the 600 million figure. And the math shows that the break-even is 1.28 million at the Billion dollar figure. And the S&P analyist attributed most of the 1.2 million net adds in Q4 2005 to Stern. So now we are almost one year later, and our accounting major is having problems trying to figure this thing out. Claiming that there is ZERO chance that it will ever break-even on the deal. As Foghorn Leghorn once said.. Boy, you can argue with me.. But you can't argue with Mathematics. In the mean time.. Let's check out what that NASCAR deal is doing for Sirius. nascar.com Wow!! Sirius all over the main page. Now let's check out what that 60 million a year for MLB is doing for XM. mlb.mlb.com Absolutly NOTHING! And so it goes, PCSTEL