closing price of 2.83. That being said how can some analysts expect it to gain good point? Thoughts?
Answers: I honestly don't know. Both companies have be perpetually losing money for years. The thought is that most of that money was used to compete beside each other, and if they merge they will no longer own to spend money to gain more subscribers. The fatal flaw to that view is that the contracts are long term and they still enjoy to be paid, which doesn't relieve the company in the short possession (1-5 years). LT there could be some good point there, but I cogitate there is something fundamentally wrong beside the business model of satellite radio, and in lay down to get the merger approved they may hold to make concessions on the subscription fees which would not be worthy for two companies that have unenthusiastic earnings and 2x the liability to assets.
Answers: I honestly don't know. Both companies have be perpetually losing money for years. The thought is that most of that money was used to compete beside each other, and if they merge they will no longer own to spend money to gain more subscribers. The fatal flaw to that view is that the contracts are long term and they still enjoy to be paid, which doesn't relieve the company in the short possession (1-5 years). LT there could be some good point there, but I cogitate there is something fundamentally wrong beside the business model of satellite radio, and in lay down to get the merger approved they may hold to make concessions on the subscription fees which would not be worthy for two companies that have unenthusiastic earnings and 2x the liability to assets.