Wednesday, January 10, 2007

XMSR: Comments On Citigroup Conference Presentation

Nothing really ground breaking at XM's presentation. The format was Q&A, rather than scripted.

Of course merger is on analysts minds, and seen as a catalyst to stock price movement. For the first time that I can remember, Parsons did not quash the idea. He said that he believed there could be substantial synergies and that the current regulatory environment is favorable for a merger of this type. He mentioned that he did not see Sirius as a competitor for the OEM dashbord, saying that once someone bought a GM, they were not likely to switch to Sirius, or vice versa, if someone bought a Ford, they were not likely to switch to XM. Essentially, he said that in the OEM market, XM and Sirius are aligned against iPods, MP3's, etc.

He was asked whether XM would be the buyer or seller, and his answer was neither... that if the deal was done it would be a merger, putting the two companies together, rather than one acquiring the other.

On upcoming devices, Parsons said there would be new products in the Spring, with more storage and battery life. He said they learned from their experience of Christmas in August of showing products before they were ready and that’s why they didn’t bring them to the CES this year.

I'm surprised that no questions were asked about how the much-hyped Apple iPhone might affect XM's venture with Cingular.

1/10/2007 12:47:00 PM

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