For those of you like me, who haven't been following stock prices, SiriusXM in the U.S. has seen their stock (pre-merger prices have been blended together) peak at $69.44, bottom out at 4 cents, have a recent peak of $4.18 and currently rest at $3.48 thanks to a CEO who has made profitability his first priority. According to what I've read in the financial press, the stock prices of the last year have been a result of investors believing that SiriusXM has a good chance of using their network of satellites and terrestrial repeaters in major markets to deliver data to vehicles, freezing out the wireless providers.
Yet, elsewhere I read that the electronic technology in vehicles is already cast in concrete five model years in advance, and that Connected Cars are only two model years away, for the majority of carmakers.
In fact, until a couple of weeks ago, when I first read pronouncements by the SiriusXM CEO like the one you see below, I had understood that cellular networks were being used universally by carmakers in the Connected Cars that are coming soon. Fait Accompli with no room for Johnny Come Latelies like SiriusXM.
Now, I'm just confused.
SiriusXM Completes Acquisition of Connected Vehicle Services Unit of Agero
Transaction Secures SiriusXM as a Leading Telematics Service Provider
NEW YORK, Nov. 4, 2013 /PRNewswire/ -- Sirius XM Radio (NASDAQ: SIRI) today announced that it has completed the previously announced acquisition of the connected vehicle services business of Agero, Inc.
"We are pleased to complete the acquisition of Agero's connected vehicle services business, creating a leading service provider of telematics and connected vehicle services," said Jim Meyer, Chief Executive Officer, SiriusXM. "With this transaction now complete, we are positioned to accelerate SiriusXM's development of our connected vehicle services platform, supporting the rapidly expanding field of connected vehicle services and strengthening our ability to provide services over satellite and mobile networks. We are pleased to welcome Agero's connected vehicle services team to SiriusXM."
Already offering unparalleled audio entertainment and data services in vehicles, SiriusXM is uniquely positioned to offer end-to-end telematics services. With this acquisition, SiriusXM will provide connected vehicle services to a host of major automotive manufacturers -- including Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan and Toyota. SiriusXM's offerings will include safety, security and convenience services for drivers and end-to-end, turnkey solutions for automakers.
In connection with the transaction, the business unit will change its name to Sirius XM Connected Vehicle Services Inc.