Obviously financial pundit Jim Cramer missed The Deal's Convergence 2.0 conference June 26. If he had attended, then he may have been reticent to suggest on his radio show that Sirius Satellite Radio should make a bid for archrival XM Satellite Radio. Had Cramer gone to the event, and listened to keynote speaker Sirius chief executive Mel Karmazin's Q&A with Deal senior editor Richard Morgan, then he'd know Karmazin's not interested in a deal. Although, Karmazin did admit at the conference that a deal might make sense for some of the same reasons that Cramer argues, he said there are a number of hurdles that may be insurmountable. Here's an outtake:
"Our business plan doesn't include making a deal." He explained that he wouldn't mind acquiring XM, but there are a few very real concerns, one being regulation, the other being how do you integrate competing services post merger. He likened the Sirius/XM culture to the "Coke vs. Pepsi" scenario.
For more about a Sirius/XM merger, visit some of the links below. —Matthew Wurtzel
See story from TheStreet.com
See Richard Morgan's related story from The Deal
See Tech Confidential blog for Convergence 2.0 coverage archive
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