Sirius Stock Rises On VW Deal
Mar 20, 2006, 8:32 AM
Sirius Satellite stock rose 6.4 percent to $4.80 on Friday after the company announced a new deal with automobile manufacturer Volkswagen to install Sirius radio sets in some Volkswagen cars, beginning in 2007. The deal, inked to last until 2012, gives Sirius an exclusive satellite radio concession with Volkswagen to the exclusion of competitor XM. Volkswagen will install Sirius radios in about 80 percent of 2007 model vehicles, and will also offer three months of free satellite service as an incentive. Nonetheless, XM still holds the lion's share of the new-car market--boasting 58 percent versus Sirius' 39 percent, even after the Volkswagen deal.