< Return to Bulls page

Making strides working with automobile manufacturers

Sirius has been making strides working with automobile manufacturers to put Sirius radios in cars and will see subscription counts and revenue increase as many of its deals go into effect over the next few years. It will also add a substantial number of subscribers as NFL and NASCAR fans sign up for service in order to closely follow the respective sports seasons.

The $25 Billion that the government is putting up is actually not a true bailout, it is a loan. A quote from the article: “… the loans would probably amount to at least $5 billion for each of the Detroit 3, plus smaller amounts for suppliers.” Is Sirius XM considered a supplier for the automakers? I would sure consider them one, but then again, this is the government we are talking about, so who knows. If in fact they do fall under this provision, it would allow them to borrow money from the government at interest rates as low as 4%. How much would be available to them is another question. This could be one possible way for Sirius XM to refinance at least a part of their upcoming 2009 debt.

Regardless, the automakers having a nice infusion of cash will allow them to produce better and more fuel efficient cars and sell more cars, which would definitely be a win for Sirius XM.

Wikinvest © 2006, 2007, 2008, 2009. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.