GO
Loading...

XM And Sirius: Listeners Tuning Them Out?

Tuesday, 5 Dec 2006 | 5:31 PM ET

Shares of the America's largest satellite operators were taking a tumble today. This is fueling new rumors about an inevitable merger between Sirius Satellite and XM Satellite--as the industry faces an onslaught of competition from Wi-fi devices to digital music players.

Sirius stocks were down 31 cents at one point to $3.87 a share, and XM stocks were down 27 cents to $14.36 a share.

Sarah McBride is a reporter for The Wall Street Journal. She told CNBC's Sue Herera on "Power Lunch" that these companies might have over estimated the market for satellite radio. She also said it's too early to tell if there's enough business for them both. She cited that gift certificates are not being bought as much as before--because the recipient does have to pay the monthly subscription bill.

  Price   Change %Change
SIRI
---
Satellite Radio Consolidation?
Shares of the nation's largest satellite radio operators are taking a tumble, fueling new rumors about a merger between Sirius and XM. Sarah McBride, Wall Street Journal Reporter, and CNBC's Sue Herera discuss the possibility of a merger.

Contact

  • Showtimes

    United States
    Monday - Friday 1:00P ET
    Europe
    Monday - Friday 18:00 CET
    Asia Pacific
    Tuesday - Saturday 01:00 SIN/HK
    Australia
    Tuesday - Saturday 03:00 AEST
  • Sue Herera is a founding member of CNBC, helping to launch the network in 1989. She is co-anchor of "Power Lunch."

  • Tyler Mathisen co-anchors CNBC's "Power Lunch." Mathisen also co-anchors "Nightly Business Report produced by CNBC."

Power Pitch

Kenny Polcari