The financial synergies are definately positive, but they need to improve the bottom line by at least 1.2B to be profitable. 400m in synergies takes care of part of that, but the rest must come from an expanded subscriber base, new products, and advertising revenue. I just don't see SIRI becoming profitable in under 3 years and in the meantime, they've going to have to float more bonds, likely in the form of CB's, and very likely direct additional share offerings. In the end, the float will be 5B+, therefor the current valuation appears to be justified, since for years, even after they turn profitable, we're looking at earnings of pennies/shr. Sorry, I'm not biting, except for maybe an in/out trade. JB
$1.7 (07/30/08)
