More Problems for XM
May 24, 2006 11:08 PM
comment(s) - last by
When it rains, it pours at XM
XM Satellite Radio is facing a bunch of problems recently. Earlier this year, XM's director Pierce Roberts Jr.
announced his resignation to the company
. Roberts said that there was increased tension between him and other executive board members and also warned that XM would be facing a critical situation down the road if costs weren't managed well. Later down the road,
XM was taken to court by the RIAA
. The company was brought to court because the RIAA claimed that users of XM's service are able to download tunes into portable XM players.
XM defended itself by saying
that its portable XM players do not allow users to transfer off music to other devices.
Unfortunately, the problems haven't ended for XM. This week, the company announced that its acquisition plans for WCS Wireless LLC have fallen through. Last year, the deal between XM and WCS was being put together so that XM could acquire WCS and obtain its technology as well as its frequency spectrum. Unfortunately, that deal took longer than expected and time has not been good to XM. The company's stock prices have dropped significantly since last year and unfortunately, this has negatively affected the acquisition. XM was to purchase WCS for 5.5 million shares of XM stock, which at the time was valued at roughly $200M USD. Now, the same amount of shares are worth less than half the original amount. From the official announcement:
At the time of the acquisition agreement between XM and WCS Wireless, announced July 13, 2005, the parties had expected to close their transaction by this time, with the timing dependent on receipt of necessary government approvals. Despite both parties' efforts to obtain that approval, it has not been forthcoming to date. Accordingly, XM and WCS Wireless have agreed to terminate the acquisition agreement in order to free WCS Wireless to pursue other alternatives for its spectrum licenses.
XM said that it originally
wanted to acquire WCS to expand its network offerings
. Audio, video and other content was in the works. XM has also been competing heavily against Sirius, which also offers competitive satellite radio services. WCS says that it hopes to find other companies to sell its technology to.
This article is over a month old, voting and posting comments is disabled
5/26/2006 9:56:29 PM
Yeah, I've heard of HD radio. I have heard that FM stations transmitting with it are drowning out adjacent stations. I have heard that it doesn't work at all on AM radio at night, and that a station transmitting HD on 1070 in LA will interfere with 1050 and 1090 in San Diego.
I've also heard that consumers will be asked to fork out $300 per unit for an untested product aimed at an unproven market. I've also heard that HD radio with faithfully reproduce 16, 20 or even 24 minutes of commercials per hour.
What a joke. HD radio is another big leap from the same tired people who brought us quadrophonic cound, AM stereo and an AMFM band that increasingly overcrowded, static-plagued and abysmally-programmed.
"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher
XM Issues Statement About RIAA Lawsuit
May 21, 2006, 3:33 PM
RIAA Sues XM Satellite Radio
May 18, 2006, 12:01 AM
Director at XM Resigns as Possible Crisis Looms
February 17, 2006, 11:00 AM
Finished Apple Watch Expected to be Showcased at"Spring Forward" Mar. 9 Event
February 26, 2015, 12:17 PM
Google Preps Pixel 2 ChromeBook, New X Server Replacement "Freon"
February 24, 2015, 11:12 PM
Report: Samsung Semiconductor Bounces Back w/ iPhone SoC and Memory Orders
February 24, 2015, 1:40 PM
Comcast Borrows Apple's Branding Flourishes for Its Remotes
February 24, 2015, 11:32 AM
NVIDIA Bows to Outraged Overclockers, Will Restore Feature in Upcoming Driver
February 23, 2015, 12:30 PM
BlackBerry Wages Legal War Against Ryan Seacrest's Typo 2 iPhone Keyboard
February 18, 2015, 5:24 PM
Most Popular Articles
Outbreak of Deadly Superbug at Californian Hospital Kills 2
February 20, 2015, 2:11 AM
Modern Glass (Windows 7 Aero Glass + Modern UI) Style is Coming to Windows 10
February 19, 2015, 1:05 PM
EDITORIAL: Board Wants to Anoint America World Police w/ Global Warrant Power
February 20, 2015, 9:10 AM
Quick Note: Microsoft Gives Dropbox Users Extra 100 GB of Free OneDrive Storage
February 20, 2015, 9:48 AM
DARPA Awards Boeing Contract to Test Jet Based Satellite Launches
February 19, 2015, 11:30 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information