- Sirius XM (SIRI +2.9%) is going to focus on creating internal value rather than pursuing any major merger/acquisition activity, its chief financial officer says.
- Speaking at Citi's Global TMT West Conference, David Frear said "Our organic growth opportunities are still massive," warning that major acquisitions might not be the most efficient way to grow and might even risk focus.
- "You can pursue the ego-gratifying strategic initiatives, and take all of managements' attention and focus on what has been acquired," he said. "Then you take your eye off of the part of the business that creates all the value."
- Terrestrial radio, not Spotify (Private:MUSIC), is Sirius' real competitor, he says, but rather than buy a terrestrial operator, "We're just a cash-flow machine. We look at ways to deploy the capital and grow the business, first through organic investments."
- Previously: SiriusXM higher after posting guidance update (Jan. 10 2018)
- Now read: U.S. IPO Weekly Recap: IPO Calendar Begins To Fill Up In The First Week Of 2018
Original article