A number of names have been thrown around throughout the years, including Google (Nasdaq:GOOG) and Apple (Nasdaq:Apple), concerning acquiring music giant EMI once news came out the company was failing. It can't be long before that idea starts to crop up concerning Sirius XM Radio (Nasdaq:SIRI) being a potential suitor, as they begin to turn the corner with the auto industry.
While Sirius is definitely looking to expand its content lineup, it seems doubtful to me that they'll make a bid for EMI, even though from a user point of view it may be compelling, but from a shareholder and profit point of view, it would be a disaster.
EMI has gone back to Citigroup (NYSE:C) for a reason, and whoever takes it over will probably be more for vanity reasons than reasons of making a profit.
To acquire EMI at this time would stop Sirius in its tracks, as it's questionable as to the profitability of EMI at this time, and doubtful as to if it ever will be again in the future.
EMI has to be judged by the industry its in, as well as an individual company. And from the music industry standpoint, it continues to struggle to find ways to generate more profits in the digital world we now live in. Within that dire situation, is the worst performing of the major music companies in the world.
The other obvious reason that Sirius wouldn't snap up EMI is the heavy debt on its balance sheet, which is about $3 billion.
Of Sirius itself is struggling to survive, let along buy up some company that would be sexy for the short term, but probably cause the satellite radio company to come crashing down.
Sirius is already vulnerable because of its total dependence on the health and growth of the auto industry at this time. Anything that would cause that tepid balance to be disrupted could seriously damage the company.
We'll hear some chatter about this probably in the days ahead, but it would be crazy to think Sirius would take the steps to acquire the music giant.
Someone with very deep pockets would probably have to do it, and someone different than Google and Apple because of the obvious conflicts of interests they would incur with media companies which are already deeply suspicious of the two tech giants.
Sirius closed Thursdays session at $1.77, gaining $0.0475, or 2.76 percent.
Friday, February 4, 2011
Is Sirius XM (Nasdaq:SIRI) Interested in EMI?
Subscribe to:
Post Comments (Atom)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
6 comments:
A great example of an article that adds nothing and is only written to manipulate or raise doubt.
Exactly, what previous person said, stupid article. Stop screwing with my friggin stock. There's never been speculation of this except this dumb article.
These kind of articles are a disgrace to Google Finance. They belong in the Message Board section of Yahoo Finance where all the manipulaters hang out.
This has got to be the dumbest I ever saw. It's like saying Ford is going to buy Goodrich, 'cause Ford uses tires, except that'd be more plausible. Sheesh.
An unbelievable waste of everyone's time. Your kidding right? Here's why SiriusXM should not do something, that nobody has EVER indicated they are interested in doing? How dumb do you have to be to author an article like this?...find a new line of work, please.
The writer of this article must be short SIRI!
Post a Comment