Explain the acquisition (Exhibit 2). How subjective are the intangible asset valuations? Why did Sirius XM Radio immediately write off $4.77 billion of the acquired goodwill (Exhibit 6)? Did the write-off indicate Sirius overpaid for XM radio? Was the merger a wise for Sirius? For XM?
Explain the acquisition (Exhibit 2). How subjective are the intangible asset valuations? Why did Sirius XM Radio immediately write off $4.77 billion of the acquired goodwill (Exhibit 6)? Did the write-off indicate Sirius overpaid for XM radio? Was the merger a wise for Sirius? For XM? Assume there were no costs associated with Mr. Stern’s … Read more