XM-Sirius Is Getting Ridiculous

Wherever I go I hear the same thing: "Sirius (SIRI - commentary - Cramer's Take) and XM (XMSR - commentary - Cramer's Take) -- will it ever happen?" I think it is safe to say that the FCC has made it so impossible for both of these companies to make it that I am concerned about going-concern status.

It is time for these two companies to go to the FCC and talk about how if they don't get this merger, they might not survive as individual entities.

What's new here?

The car build in the U.S.

The market has spent a huge amount of time discussing the impact of the dramatic decline in the car build in this country. I think there is a key intersection between the people who buy cars and those who install Sirius -- Howard Stern fans -- or XM for baseball. I also think there is a freeze among potential buyers. This deal is well known. Why take one when you can wait on getting both?

Most important, though, if we drop to a build of, say, 12 million cars from 16 million, you are talking about a dramatic decline in units that can have these two players put in.

Now we know for certain that the speculative holders of these two companies are in it for two reasons: They like the product and they expect it to go through. Sirius has been at a low dollar amount for a long time, and it has attracted more and more small-time players.

Can they really be rewarded?

I don't think so.

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