Things never get dull for the country’s lone satellite-radio provider. Shares of Sirius XM Radio Inc (NASDAQ:SIRI) moved slightly higher on the week, climbing 0.9% to hit $3.38. The media darling’s gain wasn’t as strong as the 2.2% Nasdaq pop, but there’s no point in complaining about a positive run.
There was more going on beyond the share-price gyrations, though. Auto sales for June clocked in strong, and that’s naturally good news for Sirius XM Radio Inc (NASDAQ:SIRI) down the line. Majority stakeholder Liberty Media Corp (NASDAQ:LMCA)‘s push for Time Warner Cable Inc (NYSE:TWC) may happen with Sirius XM playing a significant role. Weeks after striking a deal to broaden Sirius XM Radio Inc (NASDAQ:SIRI)’s reach, Ford Motor Company (NYSE:F) expanded the global reach of its SYNC AppLink platform with a deal in China. Let’s take a closer look.
Car sales are revving up
It was a good month for new-car sales, and that’s huge, since the sale of new cars with factory-installed satellite receivers is the lifeblood of new subscriptions at Sirius XM Radio Inc (NASDAQ:SIRI). Ford Motor Company (NYSE:F)’s U.S. sales soared 13% in June, just above the 12% that upbeat analysts were targeting.
Sales were strong for the company’s SUVs and flagship pickup trucks, but a major driver has been the smaller fuel-efficient cars that drivers are turning to as a way to save on gasoline consumption. This is an important move for Sirius XM Radio Inc (NASDAQ:SIRI), because it doesn’t want to lose subscribers who give up driving as a way to save on high fuel prices. Smaller, gas-sipping cars keep folks on the road and subscribing to Sirius.
It’s no secret that Liberty Media Corp (NASDAQ:LMCA) mastermind John Malone has his sights set on Time Warner Cable Inc (NYSE:TWC), and we know he isn’t afraid to shake his assets to make things happen.
There don’t seem to be any fears that Malone will dump Liberty Media Corp (NASDAQ:LMCA)’s roughly 51% stake in Sirius XM at the moment, but The Wall Street Journal argues that Liberty Media’s valuable stake in the satellite-radio giant may come into play here. The financial publication’s “Heard on the Street” column on Wednesday suggests that Liberty Media could potentially borrow against its stake in Sirius XM to consolidate Time Warner Cable Inc (NYSE:TWC) into its existing cable television assets.
Either way, this is a matter that Sirius XM investors will want to keep an eye on in the coming months.