Could Dish Networks Buy Sirius XM Radio?

Sep 26, 2011
J. Webster
Comments Off on Could Dish Networks Buy Sirius XM Radio?

Everyday Sirius XM radio is one of the most heavily traded stocks in the entire market. Why? Well, it only costs a little over a dollar and a half per share and there are close to 4 billion shares outstanding. That’s a lot of liquidity. But it doesn’t mean it’s a great company to own.

However, there was a little nugget in a Seeking Alpha column the other day might just move this heavily traded stock tremendously, and that’s that Dish Networks, on the prowl for other companies, might just be interested in buying a stock like Sirius.

“Through SIRI, Dish Networks would gain 21 million paying subscribers. Just as importantly, the company purchases a company with a unique subscriber base, original content and its own distribution system. With an enterprise value of $8.87 billion, a merger with DISH is possible.”

One of the biggest drivers of growth for Sirius is their service is usually included as part of the package when you buy a new car – at least for a trial period. Oh yeah, there’s also Howard Stern, who remains the big draw for Sirius.

Now don’t rush out like a mad man and buy up shares of Sirius on this very speculative talk, but maybe dig a bit further into Sirius and see if something like this could be in the card. After all, 21 million paying subscribers is nothing to sneeze at and might tempt someone to buy them out right, especially when their stock has been knocked down to a $1.66 per share.

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