"Sirius XM Radio" Please respond to the following:

From the case study, assess the major problems Sirius and XM radio faced during the acquisition of XM by Sirius as compared to the average acquisition during this period. Describe the key benefits of the acquisition to Sirius and XM.

Analyze the value of the Howard Sterns show to Sirius XM Radio.

Given your prediction of his continued success, provide a recommendation on contract extension for Stern based on his contribution to the financial stability of the company.

Case Study:

On February 19,2007, since Radio announced it would merge with XM Radio in a stock swap and the merge was closed on July 28,2008. At the time of ,merger each firm had a cumulative loss of about $4 Billion. The merged firm's 2008 revenues were nearly double in the 2007 revenues of Sirius Radio, but the combined firm reported a $5.30 Billion loss in 2008. The amount of $5.30 Billion loss in 2008 included a $4.77 Billion goodwill impairment charge at merger date, when XM Radio immediately wrote off 4.77 Billion of the $6.6 Billion goodwill it recorded as part of the price it paid for XM Radio. Cash flow from operations for 2008 was negatively by $153 million, including $51 million of merger-related costs.