Satellite radio investors getting ready for pay day merger

by Actual News Geezer | July 31, 2007 at 08:06 am

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The two major satellite radio providers - XM and Sirius - have just filed quarterly results indicating both are continuing to attract new subscribers even though the outcome of a merger between the two is unclear.

As well, market analysts have upgraded recommendations on the stocks, so someone must have the inside track on whether government regulators will approver the merger.

Sirius gained 561,493 net new subscribers during the three months, beating the 338,000 that rival XM Satellite Radio (Nasdaq: XMSR) landed during the same period. It is the seventh straight quarter that Sirius has attracted more net new subs. Yes, a lot of that is the result of XM's older, established base of satellite-radio users that are up for renewal. However, Sirius is still landing slightly more gross subscriber additions than the rival it is bent on merging with.

"The emergence of stronger growth in the OEM channel is an important
development for Sirius," said Chief Executive Mel Karmazin on an
earnings call. "During the first six months of 2007, OEM subscriber
growth continues to be stronger than expected and represent in excess
of 70% of our year-to-date subscriber growth."

Karmazin may be happily expecting good news, but over at current rival XM, executive house-cleaning was evident. Looks like Karmazin is expected to take the helm at both operations.

NEW YORK, July 25 (newratings.com) – XM Satellite Radio Holdings Inc (XMSR.NAS) Tuesday announced the departure of its chief executive Hugh Panero in August.

Washington-based XM Satellite Radio Holdings did not offer any details of the reason for Panero’s departure, a move that comes at a time when the approval for the company’s proposed merger with rival Sirius Satellite Radio is being considered by US regulatory agencies. XM Satellite Radio Holdings added that its president and chief operating officer Nate Davis would take over as interim CEO of the company.