The FreeiPodGuide Forums

jy3 · Posted: Mon Feb 19, 2007 9:09 am Post subject:

i thought this was blocked?

dmorris68 · Posted: Mon Feb 19, 2007 9:22 am Post subject:

Yeah, I'm wondering why the SEC would allow this? Instant monopoly, since they're the only two players in the satellite radio space.

h3x · Posted: Mon Feb 19, 2007 9:24 am Post subject:

Xplic1T · Posted: Mon Feb 19, 2007 1:13 pm Post subject:

Very interesting...

Its becoming cable TV like i predicted years ago, you'll see a few more players coming in into this.

Wolfeman · Posted: Mon Feb 19, 2007 7:07 pm Post subject: XM and Sirius to merge!!!

I am pretty happy. I love Sirius but XM has the cooler players. Best of both worlds Smile

http://www.msnbc.msn.com/id/17228226/

Kidd · Posted: Mon Feb 19, 2007 7:11 pm Post subject:

opie and howard stern under 1 house wow

i like xm's dance music better but i love howard now i can get them both :O

Wolfeman · Posted: Mon Feb 19, 2007 7:13 pm Post subject:

XM has the cooler gear but I like Sirius' programming a lot more. O&A never did it for me Shrug

amir89630 · Posted: Mon Feb 19, 2007 7:17 pm Post subject:

a monopoly on the satellite radio market?

Tholek · Posted: Mon Feb 19, 2007 7:22 pm Post subject:

h3x · Posted: Mon Feb 19, 2007 7:29 pm Post subject:

There will be a conference call tommorow regarding the merger at 8:30 am (Eastern Time)

SIRIUS Subscribers tune to channel 122

XM Subscribers tune to channel 200

Tholek · Posted: Mon Feb 19, 2007 7:37 pm Post subject:

h3x · Posted: Tue Feb 20, 2007 12:08 am Post subject:

If you don't have SIRIUS or XM, you can monitor the conference call by dialing 800-573-4840 or 617-224-4326 [Passcode: 29490052].

Wolfeman · Posted: Tue Feb 20, 2007 12:10 am Post subject:

I really do wonder if the FCC will let this through...

h3x · Posted: Tue Feb 20, 2007 12:13 am Post subject:

h3x · Posted: Tue Feb 20, 2007 5:19 am Post subject:

SIRIUS-XM Merger Conference Call Notes

- Operator has introduced Mel to the conference but there was silence... Operator has told us to stand by... Hold music is back on.
- Mel is finally on...
- Mel: "We believe that this is the next logical step in the evolution of Satellite Radio... Will create long term value for the shareholders of both companies"
- Management will consist of both companies, Total cost savings of $3 to 7 billion
- Mel: "The combined company expects to offer more diverse programming"
- Mel: "We expect to offer the best content from both companies"
- Mel: "Our radios will be smaller, lighter, simpler and cooler than what each company has today"
- Estimated $1.5 billion growth in revenue this year
- Mel: (regarding the pending regulatory approval) "We believe there is a solid basis for approval." Goes on to mention that the company has done extensive research on this prior to the announced merger and is confident that the merger will go through as planned.
- The two companies will come up with a name for the merged company and the new headquarters before the merger goes to vote amongst shareholders.
- Gary: "Sirius and XM will combine in a tax-free "merger of equals"
- Gary: "The board will consist of 12 members (including Mel and myself)... 4 independent contractors... 1 representative each from GM and Honda.."
- Hugh will remain CEO of XM until the merger closes.
- Plans to offers an "a-la-carte" style programming choice for subscribers
- Mentions competition from "HD Radio", "iPods", "Internet Radio" and other medias and how the company (once merged) can effectively compete
- Gary: "Shareholders will vote on the merger is the next step... This is expected to be completed within 4-6 months"
- Gary: "We expect to receive regulatory approvals within 9 months"
- Gary: "We expect to close the transaction by the end of 2007"
- SLIDE 20: Lists exclusive content offered under the new company (Howard Stern, Oprah & Friends, Martha Stewart, Bob Dylan)... O&A are not mentioned anywhere on the slide.
- Questions are being taken by those who dialed into the teleconference
- Q: Have either of you done consumer research on how much of your disconnect numbers that cite either companies programming or lack of satisfaction of programming that drives the disconnecting? Both companies have a continuing process of testing the consumer waters... In the end its about value programming... That's one of the benefits of the merger for the consumer. The thought of them having 2 radios is not as attractive to them... The vast majority of subscribers we're looking to gain is from the 90% of individuals that aren't subscribed to Satellite Radio.
- Q: Is there any impact imposed from the RIAA or NEB towards the planned merger? A: We will go through a process and file our comments individually with the RIAA and the NEB as seperate companies during the merger.
- Question was about how they plan on offering full content to it's subscribers... A: Each company has millions of exisiting radios that are in cars... We have joint engineering teams that are working on receivers that will be capable of accessing the full range of content from both systems... Current units will continue to work.
- Q: How will the marketing go during the interim period? A: Both companies will continue to operate as we do today.. Look for no changes on that front until the transaction is closed. Our plan will be to visit with regulatory committees next week.
- Q: Will you span both content under one satellite fleet? A: That's much further out... You do have the ability to access both companies content at the chipset level with further research.
- Q: Does the merger's interoperability conflict with current OEM contracts? Both companies believe in honoring agreements... We believe car manufactures and OEM manufacturers will see the benefits of dual-programming.
- XM completed the launch of XM 4 Last December... SIRIUS 5 will launch in 2008... The merger will not effect the launch of SIRIUS 5.
- Question about pricing under the new company and the DOJ... A: The one thing we do know... Raising our prices diminished our conversion rate 2 years ago (when XM raised the price)... SIRIUS did not raise it's price when XM raised theirs in 2002... We need to reach out to that 90% (that have not subscribed)... Over 90% of the people are getting their radio OTA and for free... We're confident that the DOJ will see that when they look at our competitors.
- We don't to do anything today at SIRIUS that will slow the adoption of more people coming to satellite radio... The reason that we have not raised our price is because of that overwhelming market out there of people that are not paying for radio.
- Question about the shutting down one of the two exisiting Satellite Radio spectrums... A: It's not practical to look at turning off one system or one system of satellites.. It's not feasible due to the current installed base. We have to continue to have a backwards compatibility for current subscriber base. It's not realistic to look at elimination of a platform.
- Within 25 days, we will file an application with the FCC... and that will start the clock going at the FCC.
- Final question... How soon do you think you can get the interoperative market going for subscribers to switch over? As you know, we've been researching interoperability for quite a while... It will be brought out as fast as possible when we receive regulatory approval.
- Conference closes.

Of course I didn't note take every question that was asked (a lot of it was stockholder related questions)... But I mentioned all the good parts of the conference... I had the opportunity to ask a question to Mel and Gary, but unfortunately it did not go through Sad

Hope these notes answer some of your questions about the merger...

ajasax · Posted: Tue Feb 20, 2007 8:30 am Post subject:

Are you part of some kind of Sirius committee? What got you into Sirius?

h3x · Posted: Tue Feb 20, 2007 12:46 pm Post subject:

Wolfeman · Posted: Tue Feb 20, 2007 12:57 pm Post subject:

What is a good portable SIRIUS player?

dmorris68 · Posted: Tue Feb 20, 2007 1:17 pm Post subject:

I just bought a radio and subscribed to XM about a month ago. Smile

h3x · Posted: Tue Feb 20, 2007 3:56 pm Post subject:

tylerc · Posted: Tue Feb 20, 2007 4:56 pm Post subject:

Wolfeman · Posted: Tue Feb 20, 2007 5:20 pm Post subject:

h3x · Posted: Tue Feb 20, 2007 5:41 pm Post subject:

irannaked · Posted: Tue Feb 20, 2007 6:07 pm Post subject:

ok, so since XM and Sirus are merging...where can i find the new radios and service prices?

and can you have BOTH XM and Sirus on ONE player?
$12.99 monthly?

Tholek · Posted: Tue Feb 20, 2007 11:16 pm Post subject:

In case you're still reading...None yet. There's been a FCC-required dual chipset radio in the works for some time, but both networks really didn't want it to come to fruition. That's changed now, but I don't think we'll see them for a couple of years.