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Contributors: Douglas McIntyre Jon C. Ogg

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Wednesday, July 26, 2006

Is XM Satellite Radio Really on the Block Ahead of Earnings?

Stock Tickers: XMSR, SIRI, NWS, CCU, CBS

Is XM Satellite Radio (XMSR) really a takeover candidate? The company reports earnings tomorrow and has a conference call at 10:00 AM EST, and after reviewing all the articles and research out there for tomorrow there was an article from that noted that some are wondering if XMSR is a takeout candidate.

Sirius (SIRI) has said they would consider this in the very recent past. Who knows for sure if that is in the works. The company has had major supply issues and no one is expecting a barn burner tomorrow from the company. The street expects them to lose -$0.66 EPS and post revenues of $221.5 million

The stock is down well over half this year and essentially at what looks like 3-year lows.

Clear Channel (CCU) is a 3% owner of the stock and they have been noted in the past as a potential acquirer.

CBS (CBS) has been noted before as a wanna-be acquirer.

Way way back there were some even speculating that Rupert Murdoch's News Corp (NWS) may want it if he could ever get it cheap.

We have noted in the past that XM and Sirius BOTH need to get their act together. Shareholders would likely not be too crazy about becoming a part of a large conglomerate whose growth has already been seen while shares are down in the dungeon shackles. XM really needs to do something to get off the mat, and finding someone wanting to buy them here while they are in the dirt isn't going to make current shareholders happy.

Jon C. Ogg
July 26, 2006

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