Cbs

[Eduardo5046]

I have a question for you all . With the depressed PPS of both Sirius and XM stock at present . Why would a larger company such as CBS not try to gobble one of them up . It seems like a no brainer that someone would come along and take one of these two (especially Sirius) and possibly end up owning both if the merger goes through .

Is there some law , set of laws or regulatory issue i am overlooking ?

 

[chgocolt]

I have a question for you all . With the depressed PPS of both Sirius and XM stock at present . Why would a larger company such as CBS not try to gobble one of them up . It seems like a no brainer that someone would come along and take one of these two (especially Sirius) and possibly end up owning both if the merger goes through .

Is there some law , set of laws or regulatory issue i am overlooking ?

My guess would be that all the larger radio companies are having their own profitability issues at this time and probably would have a shareholder revolt if they tried to assume the huge debt that both XM and Sirius have.

Also all the traditional radio companies have been railing against Satellite radio (paid radio) as a failed concept and have been promoting HD Radio as their response. To actually buy one of the Satellite companies would be admitting that they were wrong and that Satellite radio is a valid threat to traditional commercial radio.

The one possibility is Clear Channel. They originally had a small ownership stake in XM and still have a relationship supplying programming. Once they complete they current buyout activity that is taking them private, they won't have to answer to shareholders. I can see them trying to grab XM