Betting that its acquisition of XM Satellite Radio (XMSR) is basically a done deal at the FCC, Sirius Satellite Radio (SIRI) released guidance for the combined company:
- $400 million in “total net synergies” in 2009,
- Adjusted EBITDA of $300 million in 2009,
- Joint company becomes cash flow positive in 2009.
Sirius warns that all these projections will be rendered meaningless if the merger isn’t approved in Q3.
Mel Karmazin, who will become CEO of the combined company, has been circumspect about giving detailed estimates of post-merger synergies, except to say they will be “big” and “immediate.“
But these projections probably won’t thrill investors, who have delivered a beating to SIRI and XMSR stock. Earlier this year, Goldman Sachs analyst Mark Weinkes estimated that the market had priced $5 billion in overall post-merger synergies into the companies’ shares.
Shares in Sirius Satellite Radio are off 7.6% in morning trading, to $1.95 a share; XM is down 9.5% to $8.07 a share on the NASDAQ.
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