January 2, 2007

• True to its word, Warner Music Group declared another dividend. This was announced on December 29 and was $0.13 per share, or $19.4 million in total. WMG has said it plans to pay quarterly dividends in an amount not exceeding $80 million per year. (Read press release)

• The on-again, on-again talks of a merger of Sirius and XM was the perfect satellite radio article for January 1st. The story rolls over from 2006 and everybody is still waiting for the two to tie the knot. The New York Times' Eric A. Taub took a look at the two companies and their longing for each other. And why shouldn't they want to hook up? Each is much like the other. One analyst said, "Customers cannot tell the difference between the two services." The other message of the article was the two companies' similar cost structures. "Clearly, a merger makes sense from an investor’s point of view to reduce costs, and to have a better return," said the CFO for Sirius. (Read article at New York Times)

• Maybe it's possible to gauge the health of the P2P market by the number of P2P companies willing to advertise at a P2P-friendly, anti-RIAA website. P2Pnet.net founder Jon Newton wrote the site "is one the verge of going offline" as income as dropped 80% through 2006. In case you haven't read the site -- and I would not recommend it -- P2Pnet.net covers the file-sharing market with little objectivity and much passion. (Read article at P2Pnet.net)

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Posted by Glenn at 10:43 AM | | | P2P | Satellite Radio | Warner Music Group