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XM and Sirius to merge


Czarina
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Satellite radio's XM, Sirius to merge

February 19, 2007

 

NEW YORK --XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. 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.

 

© Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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I would think that Sirius has the better content, but that is basically biased because of the NFL rights and Howard Stern.

 

This is probably a good move from a product standpoint, however I'd hate to see rates get jacked up.

 

 

 

Fixed

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Wait, when I suggested this before lulu said I was lying? :D

 

 

 

That was never my name and what I said was it wouldn't be allowed because it would be a monopoly.

 

EDIT-The name was Lula after one of Bush's relatives. Lula Flickinger

 

Quit lying. If this does go through it will be heavily regulated.

 

"Regulatory approval, in particular, is far from certain. Last month, the commission’s chairman, Kevin Martin, suggested that a merger between XM and Sirius, the only two sizeable satellite radio services in the United States, would run afoul of the law."

Edited by Randall
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I have a lot of Sirius stock. I'm not sure if that is a good or bad thing if they merge.

 

 

 

Me too..I would like to know the answer to this as well

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As an XM guy, i can't wait to get the NFL games from my car. As a sirius guy, I've never really felt I needed any more stations from my boat. It'll be interesting.

 

nevertheless, I don't see this going through anytime soon. The govt is going to take its sweet time investigating this one.

Edited by Seattle LawDawg
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I received the following email from mel:

 

February 19, 2007

 

To: SIRIUS Subscribers

 

Today is a very exciting day for SIRIUS customers. As you may have heard, SIRIUS Satellite Radio and XM Satellite Radio are merging to form the nation's premier audio entertainment provider.

 

This combination of our two offerings will benefit you - our loyal listeners. As a single company, we'll provide superior programming to you every day with the best of both SIRIUS and XM. Currently, XM and SIRIUS broadcast a wide range of commercial-free music channels, exclusive sports coverage, news, talk, and entertainment programming. Howard Stern. Oprah and Friends. The NFL. MLB. NBA. ESPN. CNBC. Fox News. Additionally, the combined company will be able to improve existing services such as real-time traffic information and rear-seat video as well as introduce new ones.

 

After shareholder and regulatory approvals, we anticipate that the combination will be finalized by the end of 2007. Until then, both companies will continue to operate independently. We will continue to provide you with the uninterrupted service - as well as the outstanding customer support - that you have come to expect and enjoy from SIRIUS. We do not anticipate any changes in your service during the merger process, however, please call our customer care team on 1- 888-539-7474 should you have any questions.

 

We look forward to the many benefits this combination will offer and continuing to make your listening experience an enjoyable one - offering more of the Very Best Radio on Radio.

 

Stay tuned,

 

Mel Karmazin, CEO

 

Edited by justin
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I received the following email from mel:

 

 

 

The end of 2007. This could work out for everyone if approved. It was originally said it wouldn't ba allowed because of anti-trust reasons because only 2 companies were allowed to do satellite radio for several years, but maybe they will allow competition so they can merge.

 

Story from last month that such a deal wouldn't be allowed.

 

Perhaps they will counter by opening up cpompetition. As an XM listener(I have had both) I would like the NFL to be added.

 

This from XM-the channel lineup will remain the same?

 

This merger should be completed in late 2007 or early in 2008. Throughout the year, we will provide updates on how the merger is progressing and information will be available at our website, www.xmradio.com.

 

Between today and the merger date, as well as during the period immediately after the merger date, all of your services will remain the same. The channel lineup, the customer service number, the great music technology, and the XM Radio web site will all remain unchanged and there will be no disruption to service. But, if you have questions, information will be available and maintained on our website, and you can contact our Listener Care team at 800-XMRADIO, with questions and concerns.

 

XM Radio continues to be committed to providing you the highest quality audio entertainment and customer service available today. After the merger, our new company will be able to offer you the most exciting listening experience in radio.

 

Sincerely,

 

Hugh Panero

CEO, XM Satellite Radio

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  • 1 year later...

:wacko: Below is some text from the link explaining the Justice Department's thoughts.

 

The Justice Department, in a statement explaining its decision, said the combination of the companies won’t hurt competition because the companies are not competing today. Customers must buy equipment that is exclusive to either XM or Sirius, and subscribers rarely switch providers.

 

“People just don’t do that,” said Assistant Attorney General Thomas Barnett, in a conference call with reporters.

 

The government also appeared to endorse the argument of the companies that they compete with other forms of audio entertainment, including “high-definition” radio, Internet-based radio stations and even devices like Apple Inc.’s iPod.

 

“The likely evolution of technology in the future, including the expected introduction in the next several years of mobile broadband Internet devices, made it even more unlikely that the transaction would harm consumers in the longer term,” the Justice Department said.

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