(3) What is the most recent strategic alliance your company has formed? Identify and evaluate the rationale behind this alliance. Does it make sense?
The most recent strategic alliance that Sirius has formed was in December 2003, when Sirius signed a seven-year exclusive deal with the NFL to broadcast games in the 2005-2006 season. Sirius also signed a five-year deal with Howard Stern.
The most recent strategic alliance that XM has formed was in October 2004, when they signed an eleven-year $650 million deal with the MLB, giving XM exclusive rights to the satellite broadcast of MLB games beginning in 2005, including the World Series.
This makes sense for the companies because it justified the premium subscription price of its service for Sirius, and for XM it was a response to moves made by its competitor.
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(1) Identify a strategic change your company has gone through in the last decade.
The $8 billion market cap satellite radio service helped prime itself for a deal on Jan. 23 when it announced the hire of former Allen & Co. investment banker Andreas Lazar as senior VP of business development, a newly created role at the company (Catton).
Prior to his tenure as a VP at Allen & Co., Lazar was a banker at Credit Suisse First Boston, and a release by New York-based Sirius reads, he "executed strategic and financing transactions for companies in media and communications including mergers and acquisitions," (Catton)
Sirius's shares, which traded at $5.82 as of press time, slid slightly from their high of $6.40 on the day of the announcement. The shares hit their 52-week high of $7.98 in mid-December. The acquisition of Lazar and the new position he now occupies has clearly helped the company drastically. With his experience and expertise, the profitability of the company and future success look s promising.
References Used for my comment
"Sirius Gets Serious About M&A"
By: Grant Catton
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