According to a number of publications, XM and Sirius are set to announce their merger as soon as today. XMSR is almost certain to rise on the news (especially given that investors have to stew over it during the market holiday). I've seen analyst estimates indicating XM shares would be worth around $25 in the event of a Sirius merger. I think it could creep up to the $20 range. Satellite radio looks like a much better long-term play with just one company controlling the orbital airwaves. As a subscriber, I know that XM's product is far superior to any of its terrestrial competition. The synergies of the merger should allow satellite radio to compete against inferior (though more widely adopted) competition like MP3 players and land-based radio.
$16.1 (02/19/07)
Agree
Disagree
