One of the leading satellite radio companies in the U.S. -
SIRIUS XM Radio Inc.
) - reported 1.66 million subscriber additions in fiscal 2013,
significantly exceeding its guidance of 1.60 million customers.
Such robust growth in subscribers is mainly attributed to
increased automobile sales and the continuous launch of
innovative products. SIRIUS XM gained approximately 1.66 million
subscribers in fiscal 2013 as compared with 2 million subscribers
added in the last year. Moreover, the company gained 1.5 million
Self-pay net additions as compared with 1.66 million in the prior
According to the new deal with the company's major customer,
General Motors, the auto giant stopped the payment of promotional
money to SIRIUS XM. This is expected to result in the loss of
some paid promotional customers. Furthermore, the total
subscriber base at the end of fiscal 2013 was 25.56 million as
compared with 25.58 million in the prior year.
In July, SIRIUS XM entered into a partnership with
) to offer emergency support, stolen vehicle tracking and
roadside assistance to all connected Nissan Motors cars in North
A solid product portfolio coupled with strong business
relationships with different car manufacturers like
Ford Motor Co.
) and Nissan has helped the company raise its 2014 fiscal
Liberty Global Inc.
) has decided to acquire the remaining 47% stake from SIRIUS XM.
Per the deal, in a tax-free transaction, each share of SIRIUS XM
will be converted into 0.076 shares of a new issue of Liberty
Media Series C common stock. The existing Series A and Series B
shareholders of Liberty Media will get 2 shares in the Series C
stocks for each share they possess. The deal is subject to the
approval of a special committee of independent directors and
public stockholders of SIRIUS XM, other than Liberty Media.
Currently, SIRIUS XM has a Zacks Rank #2 (Buy).
FORD MOTOR CO (F): Free Stock Analysis Report
LIBERTY GLBL-A (LBTYA): Free Stock Analysis
SIRIUS XM HLDGS (SIRI): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
To read this article on Zacks.com click here.