XM and Sirius Announce Satellite Radio Merger

sportsou

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Jan 28, 2007
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XM Satellite Radio Holdings Inc. (XMSR) and Sirius Satellite Radio Inc. (SIRI) have agreed to merge, the two companies said Monday.

The deal would consolidate the only two companies in the emerging business of subscription-only satellite radio, and is sure to face tough scrutiny from federal regulators. Investors and analysts have been speculating about a deal for months.

The two companies said in a statement that Mel Karmazin, the CEO of Sirius, would become chief executive of the new company while Gary Parsons, the chairman of XM, would remain in that role. XM's CEO Hugh Panero will remain to oversee the closing of the deal, they said.

The deal would face significant regulatory hurdles in Washington, including a Federal Communications Commission rule that clearly states that one satellite radio provider cannot buy the other one. However, that rule could be waived.

A combination would also have to meet antitrust approval from the Department of Justice. The companies are expected to argue that they compete not only with each other but also with a growing base of digital audio sources such as iPods, mobile phones, and non-satellite digital radio.

Source: Fox News (more)
 
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Cerberus

In God We Trust
Sep 21, 2007
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i just don't see it happening as a merger. i think one will buy the other out per say and go from there. kinda like cingular/att/bellsouth/can't remember the other one. they would have to have new equipment also to do this for it to work. what ever they do it will be the best financial thing for them not us. btw i got XM.
 
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