Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (436460)	11/24/2008 10:33:43 AM
From: i-node	Read Replies (2) \| Respond to of 1587764

So typical of your thinking......XMSR had to merge; it was bleeding money everywhere. Actually, both companies were still bleeding, but XMSR was bleeding less than Sirius and had the cash and credit available to make it to cash flow breakeven. Had there been no merger, XMSR would likely been at cash flow breakeven at this point. Sirius would be in very deep trouble due to their plans to begin replacing satellites next year. The falloff in car sales would hurt both in a significant way, however. XM's management was, simply put, outnegotiated by Mel Karmazin. Played like a fiddle. XM was far stronger than Sirius both financially and in terms of market share, yet didn't get any premium for its better health. Karmizan took advantage of XM's biggest weakness, the inexperience of its management in negotiating mergers -- something Karmazin was an absolute pro at. And Karmizan was smart enough to approach it at the time when SIRI was at its strongest and XMSR was at its weakest; by the time the merger closed, SIRI was severely weakened and XM had gained retail strength (although, the merger costs them both millions). It was just a stupid deal, but you couldn't be more wrong about who needed the merger. That said, there are thousands of siriots who would agree with you, just out of absolute ignorance.