XM and Sirius radio

[monet2u]

ooooo I hope they merge cuz I have XM (came with car) and I want Sirius cuz they have the Elvis channel.

Gigs & Bytes:
XSirius Business
Updated 23:56 PST Thu, Feb 22 2007

Rumors became reality February 19th as XM Satellite Radio Holdings and Sirius Satellite Radio Inc. announced plans to merge their separate operations into one big music box in the sky.

Of course, corporate unions of this magnitude do not occur in a vacuum and there was speculation over the last few months that the two companies were talking merger or that one would gobble up the other. In fact, the New York Post reported the merger only hours before the official announcement.

Valued at $11.4 billion, the "merger of equals" means shareholders of both companies will own about 50 percent of the combined company. However, current XM stockholders may end up on top because Sirius will give them 4.6 shares of that company's stock for each share of XM stock, working out to XM shareholders getting a premium of 22 percent to XM's $13.98 closing price on February 16th.

Sirius CEO Mel Karmazin will rule in the same capacity over the combined company, and Gary Parsons, XM's current chairman, will do the same. But don't expect XM CEO Hugh Panero to be a part of the new company's future. He's expected to leave the building once the deal closes.

Along with Karmazin and Parsons, the 12-member board will be made up of four execs from each company and one representative each from GM and Honda.

There is plenty for consumers to like in the merger, what with content from both companies suddenly becoming available to the other's subscribers. For instance, XM listeners will get Howard Stern and Martha Stewart, while Sirius customers will have access to XM's Major League Baseball package and other sports channels such as ESPN, Fox Sports and the PGA tour.

However, when it comes to programming, both sides do engage in duplication. For instance, both XM and Sirius offer channels devoted to blues, country, alternative and music selections grouped by decades. By combining similar programming, the new company will be able to devote more time and resources toward developing unique content.

The new merger would also mean an end to the "XM or Sirius" question currently facing consumers when shopping for satellite radio receivers. Neither service works on the other's hardware, although engineers for both companies are working on a unit that will receive both signals. Meanwhile, current users may have to upgrade to receive all the content the new company will offer.

On their own, neither XM nor Sirius has turned a profit, but combined 2006 figures show about $1.5 billion in revenue with about 14 million subscribers. Both companies' stocks dropped about 40 percent in 2006 because of worries about subscription growth.

But before Sirius and XM get too cozy, there are at least two major hurdles the two companies will have to overcome before they can consummate their corporate feelings for each other.

Like the Federal Communications Commission, which created a regulation back in 1997 specifically prohibiting the two companies from merging.

Of course, the FCC could either change the rule or just create an exception to the rule that only applies to this specific situation. Or maybe they could just toss it completely.

But that's not the current vibe emanating from the Commission. Chairman Kevin Martin has already said the two companies have a pretty tough case to prove consumers will benefit from the deal.

Then there's the Justice Department, which might consider the merger a violation of antitrust rules and regs. But that's just the government. Commercial broadcasters aren't too happy about the proposed merger either. Just ask National Association Of Broadcasters Executive Vice President Dennis Wharton.

"Given the government's history of opposing monopolies in all forms, NAB would be shocked if federal regulators permitted a merger of XM and Sirius," Wharton said. "It bears mentioning that regulators summarily rejected a similar monopoly merger of the nation's only two satellite television companies – DirecTV and Dish Network – just a few years back."

But the world has changed since 1997, when the FCC declared that XM and Sirius must forever go their separate ways. Back then, terrestrial radio was considered to be satellite radio's biggest competitor. Of course that was before iPods, music streaming on demand and Internet radio.

Plus, Sirius' Mel Karmazin has a reputation for getting what he wants. If the government tries to block the merger, you can bet Mel will give the feds one helluva fight.

[aquaphase]

actually you probably don't want a merger.

http://gizmodo.com/gadgets/gadgets/xmsi ... 238107.php

[Sybil]

as we celebrate mediocrity all the boys upstairs wanna see
how much you'll pay for what you used to get for free

So says Tom Petty, who has a deal with XM. Hypocrite much?

Sy "will NOT pay for it, no matter how mediocre" bil

[monet2u]

actually you probably don't want a merger.

http://gizmodo.com/gadgets/gadgets/xmsi ... 238107.php

oh crap then screw that. I'm already getting milked for my car (listen all the time) and a home system that I hardly ever use. oh well.

I'll just play my own damn elvis music! bastards

[mere1975]

Jackie I wish we could swap.

I'd trade my Sirius Elvis channel for your XM Lucy.

- Mere "everytime I go somewhere and love the music and ask the guy/gal behind the counter who made the mix cd, he/she says it's XM radio" 1975

[monet2u]

oh yes, lucy is nice. I have that and fred and ethel plugged into my fave buttons. soooo good. the only thing missing is Elvis. *sigh*