XM & Sirius Satellite Merger in a Nutshell

XM and Sirius Satellite radio companies spend way too much on exclusive radio talent like Oprah, Howard Stern, and Major League Baseball games. For better financial health, they're proposing a "merger of equals", where Sirius plans to buy XM for 4.6 Billion in stock. The FCC may oppose it, worrying about an anti competitive marketplace. Meanwhile, the two companies are whining that iPods are kicking its ass. I'd agree.

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My thoughts...


If the FCC allows this, yes, they would be the only sat radio folks in town, and the word monopoly comes to mind. But that doesn't mean that we have no where else to get music from. So, If XM and Sirius try to jack their prices, and lose their competitive edge they'll lose customers. I'd say, the merger should help us all. As long as prices stay the same, and content stays as rich, we won't have to choose between the talent on each network. A big if, especially in the long term, but I believe the market will sort it all out.

http://news.yahoo.com/s/nm/20070220/... [Yahoo!]