Sirius and XMSR: Merger, Apple Buyout Among the Possibilities

After great quarters for both Sirius Satellite Radio (SIRI) and rival XM Satellite Radio (XMSR), merger and takeover speculation has picked up and continued to make its way around. (StockRumors.com initially reported merger and takeover rumors between SIRI and XMSR in July of 2006.)

Both companies are growing and appear to have good future potential; however all of the takeover and merger speculation that has been going around has affected the valuation of the stocks. Some have argued that the shares are not overpriced as merger and takeover premium could be built in.

XMSR has typically been the target of the takeover rumors, as it has the smaller market cap of $3.7B. XMSR posted a positive surprise on its earnings, losing less than expected per share (-$0.32). XMSR has cash and securities of $211M.