XM and Sirius to Merge

Posted on February 19, 2007

The two companies that helped revolution radio and launch the ad free satellite radio industry are merging. The merger between Sirius Sattelite Radio and XM Satellite Radio is a $13 billion deal. There is one big possible wrench in the XM-Sirius merger plan and according to the Hollywood Reporter that wrench is regulator approval.

Experts have been saying for months that approval of a combined XM-Sirius depends on how the FCC and anti-trust regulators view the industry. If considered broadly, with digital music players and the Internet thought of as competition, then approval ought to be granted. However, if the government sees competition for XM and Sirius stemming only from each other and from free radio, then approval isn't likely.

Sirius and XM said Monday that they're confident they will be a single company by the end of the year. What they haven't yet decided is what their new company will be called and where it will be headquartered. Sirius is based in New York and XM in Washington, D.C.

We don't know what the name of the new company will be if they get regulator approval but we do know the company will have a huge subscriber base of 14 million listeners.

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