Friday, February 23, 2007

New York Times: Satellite Radio is A Good Idea But Has Been A Bad Investment

High & Low Finance
Satellite Radio: A Good Idea, but a Bad Investment
By FLOYD NORRIS, Feb 23, The New York Times

It is the genius — or perhaps the great flaw — of the American capital system that really clever, but totally uneconomical, ideas can be financed by investors.
That process creates enterprises that may eventually be valuable, even if not to those who put in the original money. So it was with satellite radio, a onetime Wall Street darling that is again the subject of investor enthusiasm after the announcement of plans to merge the only two players in the American market: XM and Sirius.

Perhaps satellite radio will finally work out as an investment now. The hope is that the two companies can use the threat of financial failure to obtain regulatory approval for creation of a satellite radio monopoly....read more: here