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Sirius And XM Now Sirius XM Radio Inc.; New Share Offering Priced

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imageNow comes the really hard part… XM (NSDQ: XMSR) and Sirius (NSDQ: SIRI) have just announced the completion of the merger. The new company, SIRIUS XM Radio Inc. will now trade under Sirius’ old ticker (“SIRI”) starting today. Now that the two rivals can stop competing with each other, XM Sirius is reiterating guidance that the merger will save them $400 million in 2009, leading to EBITDA exceeding $300 million for the year. Release.

In a separate release, Sirius announced the pricing of a common stock offering. Altogether, 262,399,983 are being offered, 183,679,988 of which will be sold at $1.50 (Sirius currently trades at $1.86). The remaining 78,719,995 will be sold from time to time at various prices. Release.

8 Responses to “Sirius And XM Now Sirius XM Radio Inc.; New Share Offering Priced”

  1. sosirius

    Once the merge was in talks of approval everyone suddenly was for SIRI and now that its finally completed people are hesitant about the decision. I've watched this stock bounce with every news article and media hype. The price goes down and sentiment is up and vice versa ( I overlayed the price on's sentiment graph and it almost seems this stock responds contrarily. I don’t think we’re going to be able to tell much until at least a few years and its probably going to be a very bumpy ride until then. I'm still optimistic for SIRI, but this is obviously a long term hold. SIRI shareholders have been watching there stocks fluctuate for quite some time.

  2. Joseph Weisenthal

    I have no problem seeing Stern get paid out the wazoo for what he does, but I think calling it a "shame" that he may not get as much money next time he renegotiates his contract is a bit strong.

  3. You might see Stern get screwed on his new contract. Without Sirius trying to lure Howard away from XM there's no justification for his huge price-tag. With his comfort level and the freedom he has on satellite, I think his contract will come down substantially, which is a shame, because he's the best thing on Sirius XM Radio.

  4. Joseph Weisenthal

    Agreed. No more insane bidding wars for talent.

    I was a little surprised there was no new logo today. Maybe they didn't want to jinx things it by readying one in advance.