Barron’s quotes investment research operation Stifel Nicolaus as saying that the odds of a successful Sirius (SIRI) merger with rival XM Satellite (XMSR) are 55% to 60%.
Now, how do they know that? Even sports radio talk show hosts don’t bat 50/50 on their NFL play-off picks. Most people don’t win at the horse races or the black jack tables.
Stifel’s explanation for its math is that "the key issue may be how the DOJ views competition from terrestrial radio, iPods and other music sources." It seems that has been the issue since well before the deal was announced. But, maybe it is new news and everyone else missed it.
Stifel likes the stocks even if the merger does not go through. There could be a positive catalyst like a major car company putting satellite radio in all of its cars as standard equipment.
Or, Sirius could miss its subscriber targets and run out of money for debt service.
It’s a toss up.
Douglas A. McIntyre
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
