XM, Sirius Satellite Radio Rivals to merge.

Posted by: PocketBrain on Feb 20 2007

     XM and Sirius have begun to get serious about their plans to merge, in spite of an FCC provision forbidding just such a merger.  They announced their plans to do so Feb. 19.

     In the face of the obvious questions that arise when such consolidation eliminates competition in a particular market, XM radio tells us that the monthly service rates will not rise, and that they are motivated to keep their services affordable.  Time will tell, of course, whether this is true.  To another top question whether the programming lineup will be affected, XM says that only redundant programming will be eliminated, and subscribers to either/both services will gain "access to a greater portfolio of rich and diverse programming."  This seems to suggest a true merger, wherein nothing is lost.  XM won’t say quite yet whether XM radios will be able to tune in Sirius broadcasts, and Sirius units will play the XM lineup. 

     The merger, considered a "Merger of equals," will yield a combined value of approximately $13 Billion, and XM and Sirius shareholders will each end up owning approximately half of the combined company.  The combined company claims to provide the following benefits to its constituents:

• Greater programming and content choices.
• Accelerated technological innovation.
• Benefits to OEM and retail partners (by way of the greater programming content).
• Enhanced financial performance; important to shareholders.
• More competitive audio entertainment provider (to the free, terrestrial radio stations).

     Basically, they are saying that their combination will give you more stations to choose from, their technologies will combine favorably, it will make more money, but still be competitive with your free, commercial-ridden radio.

     In the latest update, XM/Sirius appears to have no plans to merge content or technology, and their prices may jump.  So much for "all for us."

FAQ about the merger at XM Radio.

XM’s press release about the merger

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