Will Google (GOOG) buy Howard Stern's Sirius (SIRI)?

Posted Sep 25th 2007 8:45AM by Peter Cohan
Filed under: Deals, Rumors, Google (GOOG), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Marketing and Advertising

WebProNews reports on a rumor that Google Inc. (NASDAQ: GOOG) is proposing to take over Sirius Satellite Radio (NASDAQ: SIRI). This rumor originated with Zachary Rodgers on ClickZ who posted: "A high profile source is pretty convinced ol' Goog is on the verge of snapping up Sirius Radio."

While such a merger would benefit Google, which is looking for a satellite outlet for its dMarc/AdWords radio advertising technology, there is little likelihood that Sirius would cooperate. After all, it's trying to get approval to merge with XM Satellite Radio Holdings (NYSE: XMSR).

I think this rumor is amusing, and if Google wants Sirius to use its technology to serve radio advertisements, it could just wait until after the merger and try to sell it to the new company. It's hard to see why buying a money losing company for, say, $5 billion just to sell it some technology would generate a positive return for Google shareholders.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Tags: deals, goog, howard stern, HowardStern, inthenews, siri, xmsr

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Reader Comments (Page 1 of 1)

9-25-2007 @ 9:36AM

ericsmusclecars said...

Im thinking Google isn't far away from buying the world......

http://www.ericsmusclecars.com

9-25-2007 @ 9:59AM

Sam said...

I didn't know Howard Stern had purchased Sirius!

9-25-2007 @ 10:11AM

Gump said...

Google Satellite Radio: It's_ON.

9-25-2007 @ 10:24AM

Andrew Eller said...

Howard Stern brought it up on his radio show yesterday (9/24). That is probably who he is referencing when he says "a high profile source".

10-19-2007 @ 12:02PM

Jeff said...

How does this garbage even make the news?

9-25-2007 @ 4:09PM

Bob Ross said...

Because the stock most likely will never be at the levels it is now, and can be bought. After the merger, Sirius will be worth much more, and profitable. If this guy thinks Howard Stern is all there is to Sirius, he really knows very little about the subject he is writting about.