SXM will stick around, if it dies what’s left, terrestrial radio? They know the value in SXM.
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SiriusXM Liberty Media Merger
- Thread starter TheBigA
- Start date
That, and streaming. It's terrestrial that has a future, albeit not as robust as before the sea change brought on by the internet. SXM is handicapped by being a service that people have to pay for -- and there's still plenty of resistance to that out there -- and by its expensive satellite distribution system, affected by trees and hills to a much greater extent than AM and FM.
People are not afraid to pay for content if they really want it.
But SXM is finding that there aren't enough of those people to keep subscriber numbers growing, especially after free trial periods end.
They only sell so many cars a year and that is their biggest source of listeners. It seems be working for Spotify though.
Spotify is a music service, not a linear real-time radio channel service.
They are becoming a podcast service. They all seem to be following the same model now.
So is iHeart, Cumulus, and Audacy. Let me know when they get into the hosted real time radio business like SiriusXM
Okay, then back to a penny stock, because we both know this whole deck chairs stock thing amounts to buying time in a hope Wall St. will realize traditional media isn't such a bad investment after all.Sirius WAS a penny stock. It went down to 2 cents. Then Malone came along and bought a bunch of stock. Investors trust Malone. Buffett trusts Malone to run the company. Here's what Motley Fool says:
Why Is Warren Buffett Buying More Sirius XM Stock? | The Motley Fool
Berkshire Hathaway is adding to its position in one of the biggest losers on its scorecard this year. It makes more sense than you think.www.fool.com
According to this, Malone is still the largest shareholder.
Could they take the company private?
Once again, this new stock incorporates Liberty Media with SiriusXM. Not just SiriusXM.
You think satellite radio is traditional media?
It would cost them $9 billion. You think that's a smart idea?
9 billion, seems like plenty to keep the company running. I thought they were in dire straights.
To Wall Street? Absolutely! Just because you rebrand (fresh coat of white wash), doesn't mean you aren't doing the same thing.
It's going to happen eventually. As I mentioned prior, there is zero chance they'll meet expectations of the Street this year or next.
Technically? Sure. But now that they've relaunched a new stock offering, now they would need to pay shareholders $30 a share to buyback stock. They would have been better off going down that road when the share price was below $1.
Is SXM making money just not what investors want or are they really in trouble financially?
I get the impression they're not losing money, but because the traditional media market is depressed and their investment in podcasting and streaming hasn't netted the results they'd hoped, they're stuck in the slow lane of the future growth highway. It doesn't mean they're circling the drain, but modern shareholders want to see annual double digit growth of some form, preferably revenue. The question will be whether they effectively get pulled over for blocking traffic.
This seems to be all investors, this is why companies are so mismanaged now trying to go after every last dollar.
They're not doing an IPO. They're not chasing after new money or new investors. Here's what Motley Fool says:
So, why on God's green earth would they "aggressively buy back stock" then reissue it? I still maintain this move is nothing more than an attempted reintroduction to SXM (SIRI) with the hope of garnering the attention of Wall Street, considering it's been a while since SXM became lost into the haystack of media.
Just a couple days since the introduction of SIRI, the stock lost 4% today, so seems like Wall Street is on to the game:
Oh, and SIRI nor SXM pays a dividend, so what good is it?
So you're saying one thing led to another?
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