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Forums » Analysts Say XM / Sirius Merger is “Imminent” » um
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nightstar75

@salvagedirect.com

reply to cbrigante2
Re: um

You asked why would joining 2 non profitable compnaies be benificial?

Savings come from:
- As stated by one person, advertisement money to compete against the other.

- Research fees to design new equipment would be combined to one company and could be cut by 25%.

- # of employees will be cut down, especially the big wigs which will walk away with a pretty profit from the increase of the stock price.

- Again, stock price will increase allowing invetors to control only one company instead of two.

- Better quality of radio by combining the best planners the two companies have thus more customers and the possibility of an a-la-crate package (you pick what you want and want only and pay so many cents/dollars per channel per month). This will also give XM/Siris a better understanding of what people want, thus get rid of channels that 75% of the listeners will not listen to.
Forums » Analysts Say XM / Sirius Merger is “Imminent”« Not an expert  


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