This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Google, Sirius XM Hook-Up: Reeks of Desperation

NEW YORK ( TheStreet) -- I appreciate the fundamental message: "If you fall off a horse, just get back on." However, I wonder at what point repetition becomes the definition of insanity. You know you're insane when you keep doing the same thing over and over and expecting a different result.

On Tuesday, an article by Reuters (This link will take you to an outside source.) revealed a new content-sharing partnership between search-giant Google (GOOG - Get Report) and the king of satellite radio Sirius XM (SIRI - Get Report). The deal, which will be announced today at Google's I/O developer conference, is an effort to restore Google's fledging attempt at being relevant in television -- an area where it has previously "fallen off the horse" more than once. However, I think this time this really reeks of desperation.

Google TV has never worked, and at this point, it is hard to say that it ever will. This is even though it has previously inked partnerships with streaming services with both Netflix (NFLX) and Amazon (AMZN). However, with Sirius, Google will have a new app that will feature DVR-like controls that will allow listeners to stream content provided by Sirius, which includes live sports as well as the so-called "shock jock" in Howard Stern.

One of the things that has made Warren Buffett the world's most successful investor is that, along with his fundamental belief of "investing in what you know," he also said, "If we can't find things within our circle of competence, we don't expand the circle." In other words, don't venture too far into things that you don't understand.

As much as I want to give Google the benefit of the doubt here, it just seems that this is another example of where it tries too hard to go tit-for-tat with Apple (AAPL - Get Report). Google sometimes fails to realize that Apple is taking it on a wild goose chase.

While this might be a good thing for Sirius XM, as this licensing deal will certainly be another revenue stream for the company, Google, on the other hand, needs to remember that there was a reason why the broadcast networks were never too enamored with the original idea. It is remarkable how it constantly tries to be everything that Apple is considered to be. And in the process, the company always appears unsatisfied and refuses to acknowledge when it has gone too far out of its circle of competence. The result is often a distraction that translates into spending R&D money and resources where it shouldn't: Google+ is a prime example.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.37 -0.85%
GOOG $697.33 0.72%
SIRI $3.90 -1.40%
FB $117.91 0.41%
TSLA $222.82 -4.10%


Chart of I:DJI
DOW 17,651.16 -99.75 -0.56%
S&P 500 2,048.79 -14.58 -0.71%
NASDAQ 4,721.7940 -41.43 -0.87%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs