Filed under: Deals, Products and services, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Politics

Sirius Satellite Radio Inc.’s (NASDAQ: SIRI) $3.5 billion acquisition of rival XM Satellite Holdings Inc. (NASDAQ: XMSR) might at long last be approved by the Federal Communications Commission, according to the Wall Street Journal.

“Republican commissioner Deborah Taylor Tate is the only FCC member left to vote on the deal and she’s expected to do so shortly, two FCC officials close to the negotiations stated,” the paper said. “She is expected to sign off on the deal in exchange for a consent decree that resolves several enforcement issues involving the satellite radio companies and a combined fine of about $20 million, an FCC source close to the deal.”

Even with the regulatory hurdles just about cleared, the future of satellite radio is far from clear. As my colleague Douglas McIntyre noted earlier this day, losses at both companies are narrowing but their subscription growth rates are slowing. Both firms also are more than $1 billion in debt.

Though I’m a large fan of the medium, I wonder sometimes whether its moment in the sun has past. Remember BetaMax and 8-track players were considered slicing edge at one time.

Share This

Share This

Filed under: Deals, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Politics

Three of the commissioners of the FCC have voted on the Sirius (NASDAQ: SIRI) merger with XM Satellite (NASDAQ: XMSR). Two have voted in favor, and one has voted against. That leaves two other votes. In other words, the deal could still be killed.

One of the remaining commissioners has indicated that he would vote for the merger if the companies would agree to a six-year price cap on their services. According to The Wall Street Journal, “The offer was viewed as an attempt to start negotiations, but the companies so far are showing little interest in haggling.”

Is it any wonder? The most current earnings reports from the two companies indicate that, while their losses are getting smaller, their subscription growth rates are slowing. Each firm has more than $1 billion in debt and neither has ever had an operating profit. In other words, if the companies cannot raise their rates the chances of them becoming profitable are significantly curtailed.

The FCC may be putting Sirius and XM in an almost impossible position. If they are willing to make moves which could hurt their earnings longterm, they might get the votes they need for approval. If not, the merger could be scuttled.

The future of satellite radio is now based on two bad outcomes.

Douglas A. McIntyre is an editor at 247wallst.com

Read | Permalink | Email this | Linking Blogs | Comments

Share This

Share This

Filed under: Deals, Rumors, Google (GOOG)

Yesterday on the tech news site TechCrunch, it was reported that Google, Inc. (NASDAQ: GOOG) may be buying social news website Digg.com for up to $200 million. Now, Digg.com has come under acquisition rumors so far, but this is the most serious one. Google stands to keep its iron fist over the controlled flow of information with the purchase if, in fact, it is officially announced.

Digg.com, which has propelled itself into the limelight by having its members and readers publish links to news stories from around the globe and vote on them to let its customers choose “headlines,” is no small potato.

Although Google was rumored to have been in the chase for the company back in March, it should go ahead and just make the announcement official. Integration of Digg.com into Google News (which is already an excellent product) would take Google’s news aggregation product to the next level and would assist it solidifying its daily news position against the likes of Microsoft Corp. (NASDAQ: MSFT) and Yahoo, Inc. (NASDAQ: YHOO).

Digg.com would not be a good fit for Microsoft, however. While Microsoft continues to roll out web-based properties and products, many of its actions seem to be compelled by a “me too” attitude more than a corporate strategy, regardless of what the company states. Google, right now, has the cachet and the product breadth to continue steamrolling much of the competition — and a Digg.com purchase would just make it stronger.

Read | Permalink | Email this | Linking Blogs | Comments

Share This

Share This

Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Deals, Google (GOOG), Yahoo! (YHOO), Pfizer (PFE), PepsiCo (PEP), Amazon.com (AMZN), McDonald’s (MCD), AT and T (T), Anheuser-Busch Cos (BUD), Boeing Co (BA), ConocoPhillips (COP), Costco Wholesale (COST), Washington Mutual (WM)

Stock futures were higher this morning, indicating stocks could have a positive start to the session as oil prices continued to decline, sinking below $127 a barrel. Weekly inventories numbers reported later this day could have an impact on oil prices. Then there is continued optimism in the financial sector, which caused the rally Tuesday. Also, a bill aimed at helping the housing market will reach the House floor. But once again earnings will likely have investors’ attention with Costco already giving a profit warning.

Costco Wholesale Corp. (NASDAQ: COST) shares are plunging over 8% in premarket trading after the wholesale retailer warned its August-ending quarter’s profit would miss analyst estimates. This is most surprising as Costco had been one of the retailer that seemed to have benefited from consumers trying to save and buy lower-cost items. But Costco blamed the lower profit on rising energy costs, saying it will earn less than $1 per share.

Boeing Co NYSE: BA) has just announced results, saying quarterly profit fell due to a charge. The plane maker reported Q2 EPS of $1.16, with $0.22 charge, versus the consensus of $1.23. Revenues came in at $17 billion, versus the consensus of $17.24 billion. Boeing also reaffirmed 2008, 2009 forecast.

PepsiCo (NYSE: PEP) reported higher quarterly profit on Wednesday, as net income rose to $1.7 billion, or $1.05 per share. Excluding items, earnigns per share were $1.03. Net revenue rose 14% to $10.95 billion. The company benefited from strong international demand and the weak U.S. dollar. The company raised its revenue outlook.

Pfizer Inc. (NYSE: PFE) shares are up more than 3% in premarket after the pharmaceutical stated second-quarter profits more than doubled. The company earned $2.78 billion, or 41 cents per share. Excluding special items, Pfizer earned 55 cents per share, beating estimates by a penny. Revenue rose 9% to $12.13 billion, of which 7% was due to the dollar. U.S. sales fell 2%.

Another busy day for earnings includes results from McDonald’s (NYSE: MCD), AT&T (NYSE: T) and ConocoPhilips (NYSE: COP), Amazon.com Inc. (NASDAQ: AMZN) and Anheuser-Busch Cos (NYSE: BUD) among many others.

In non-earnings news, TechCrunch reports that Google Inc. (NASDAQ: GOOG) is in final negotiations to acquire Digg for “Around $200 Million.”

Share This

Share This

Money News - AOL Money & Finance
Breaking financial news stories about markets, investing, mutual funds, stocks, companies, personal finance, and industries such as travel and technology.

MoneyNews.com - America’s Money News Page
Home: Financial News: Investing & Analysis: Newsletters: Archives: Experts’ Corner: Special Reports: Shop: Contact Us

COX.net for Omaha - Financial News
Cox.net is provided by Cox Communications to provide local news, weather, sports, movie information at the theeater and at your home, and access to the tools that

Cnn money news anchors - ♦ Smart Casheers ♦
Cnn money news anchors - ♦ Smart Casheers ♦ Jennifer westhoven is a legal shouldn’t have been diverted from the levee project to the war, but cnn money news anchors i i am

Virgin Money in the News
Read what people are saying about Virgin Money and its array of solutions. We like to toot our own horn. We care about it even better when others do it for us.

Money news articles News Articles - Mobile Alabama News AL Pensacola
Money News Articles Money news stories Money articles from WKRG News Mobile Alabama and Pensacoal Florida Gulf Coast News

Money Matters | News, Breaking News, Latest News, Australia News
News from Australia and the world, featuring the latest national, world, business, sport, entertainment and technology news. Drawing on News Limited’s worldwide resources and

News.com.au Money Stuff Blog
Chances are the beating the Australian share market took in the past financial year has left you out of pocket. All working Australians own shares, courtesy of their super funds

Moneycontrol.com - Personal finance vortal for news, markets, shares
Provides comprehensive personal finance information and news on indian capital markets, stocks, shares, mutual funds, insurance, debt, loans, credit cards, fixed income, planning

UK Money News - London South East
British Treasury to axe planned reforms of foreign profit taxation - report LONDON (Thomson Financial) - The British Treasury will this week bow to pressure from business by

Share This

Share This