Sirius Posts Narrower Losses; Cramer Goes Off On Merger
February 26, 2008 at 5:32 AM (PT)
SIRIUS SATELLITE RADIO, which plans to buy rival XM SATELLITE RADIO, posted a narrower loss for the fourth quarter, fueled by an increase in subscribers to its pay-radio service.
SIRIUS posted a net loss of $166.2 million, or 11 cents a share, compared with a loss of $245.6 million, or 17 cents a share, in the year-ago quarter. Revenue for the pay radio operator, whose programming choices range from HOWARD STERN to NASCAR auto racing, increased 2% to $249.8 million.
SIRIUS added 654,309 subscribers in the quarter and ended the year with 8.32 million.
There's a gross miscarriage of justice going on in Congress right now that just makes absolutely no sense.
Cramer Goes Off On Radio's Business Model
"There's a gross miscarriage of justice going on in CONGRESS right now that just makes absolutely no sense," JIM CRAMER told viewers of his "Mad Money" TV show MONDAY (2/25)
He was referring to the now year-old merger attempt of SIRIUS SATELLITE RADIO and XM SATELLITE RADIO that's been under review by the Department of Justice and the FCC, reports THESTREET.COM. CRAMER has taken issue with the fact that the SIRIUS/XM merger has now taken longer than both the merger of EXXON MOBIL and WHIRLPOOL with MAYTAG. Despite four hearings on the matter, CONGRESS is no closer to a decision on the matter.
Defending the deal, CRAMER pointed out that SIRIUS and XM have pledged to give Congress everything they've asked for, including a la carte pricing options. "Satellite radio has competition," he noted, "from both terrestrial radio as well as from APPLE's iPODS and other MP3 players."
He warned that if the deal doesn't go through, XM might not survive, and SIRIUS would be put into considerable peril. "The blame rests squarely on the members of CONGRESS ," CRAMER asserted, adding many in CONGRESS accepted campaign contributions from the NATIONAL ASSOCIATION OF BROADCASTERS, who represent terrestrial radio and oppose the merger. "This raises eyebrows," says CRAMER. "Terrestrial radio is holding onto their dying business model and just won't let go," he said.
CRAMER extended an open invitation to any member of CONGRESS who can explain why the deal is being held up and why consumers are being denied choice and fair competition. He pledged to continue to press the issue until CONGRESS takes action.