Wednesday, April 18, 2007

WedBush Comments on CBS Rumor

April 18, 2007

William Kidd published the following comment in reference to the recent CBS rumor:

Satellite Radio (SIRI - BUY, XMSR - HOLD): CBS Acquisition Rumor Shakes Up Depressed Prices

Report that CBS could be interested in either XM or Sirius sparks downtrodden equities; though we lack a definitive basis to support this unsubstantiated rumor, we think it's plausible that a radio player could look at satellite radio defensively.

If true, this would not be the first time that radio pondered teaming with the enemy.

We're skeptical that CBS, or any other media player for that matter, would attempt to combine both Sirius and XM given all that has already transpired.

The Senate also met on the merger yesterday: debate continues but the quality of the debate itself does not seem to be progressing.

The recent sell-off is overdone: Sirius is worth a strong look for investors with longer-term horizons.

Labels: cbs, merger, sirius, xm