The Week in Tech

This week in tech kicked off with the Feds (finally) giving a boost to satellite radio.

Tuning in a merger
On Monday, The Wall Street Journal reported that FCC Chairman Kevin Martin was on the verge of approving the proposed merger between XM Satellite Radio (Nasdaq: XMSR  ) and Sirius Satellite Radio (Nasdaq: SIRI  ) .

It's about freaking time.

There are, of course, conditions: caps on subscription fees and a licensing program to allow third parties to build receivers, for example. None of the caveats appear to spell doom. To the contrary; lower subscription fees could induce newbies to try satellite radio.

Or not. Bearish analyst Mark Wienkes this week lowered his price targets for both companies. For XM, his new bull's-eye is $6.50 per share. What's interesting here is the math, Foolish colleague Rick Munarriz writes: If you assume a deal will get done, XM's floor should be right around $8.

Perhaps an arbitrage opportunity is forthcoming?

All hail the iPod!
Who says the iPod, whose unit sales were up just 1% in the latest quarter, is dead?

Apple (Nasdaq: AAPL  ) yesterday announced that its iTunes Store has sold its 5 billionth song, just 3.5 months after crossing the 4 billion barrier. 

Wait, it gets better. Apple also says that it is selling and renting more than 50,000 movies per day. No doubt Netflix (Nasdaq: NFLX  ) is still the king of couch cinema, but aren't you impressed? Movie sales and rentals could soon be a $100 million business for Apple, according to media analyst Cynthia Brumfield.

More digital news from this week that you can use:

  • Shares of Motorola (NYSE: MOT  ) hit a five-year low; Fool Dave Mock and I debated the chances of the iPhone catching on in the enterprise world. (Follow the links for the pro and con arguments.)
  • Sprint Nextel (NYSE: S  ) teamed with Samsung to introduce the new "Instinct" smartphone, which it claims could be an iPhone killer. Don't bet on it.
  • Netflix dumped Profiles, which allows subscribers to split up an account into several queues for individual family members. The result? Less data and, very likely, less accurate recommendations. Dumb.
  • Downloads of version 3 of Firefox started slow but ended strong. More than 8 million took a chance on the new browser.

And that's it for this week in tech. See you back here next Friday, and in the meantime, Fool on!

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 669404, ~/Articles/ArticleHandler.aspx, 10/24/2016 3:39:08 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
AAPL $116.60 Down -0.46 -0.39%
Apple CAPS Rating: ****
MSI $73.62 Up +0.05 +0.07%
Motorola Solutions CAPS Rating: ***
NFLX $127.50 Up +4.15 +3.36%
Netflix CAPS Rating: ***
S $6.55 Down -0.17 -2.53%
Sprint CAPS Rating: **
SIRI $4.15 Up +0.02 +0.48%
Sirius XM Radio CAPS Rating: **
XMSR.DL $0.00 Down +0.00%
XM Satellite Radio CAPS Rating: No stars