XM and Sirius Officially Merge

Illustration for article titled XM and Sirius Officially Merge

The rumors were flying all day after that NY Post story hit and now we can officially tell you that XM and Sirius are indeed merging. Mel Karmazin (head of Sirius) will be CEO while Gary Parsons (head of XM) will be chairman of the new company. Both companies will continue to operate independently until the merge goes through. In other words, you ain't getting a load of new channels when you turn your satellite radio on tomorrow. (Damn!) But the world of satellite radio will get interesting regardless. An "official" press conference is expected tomorrow.

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Sirius and XM to Combine [Press Release]

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DISCUSSION

elvindeath-old
elvindeath

Judging by the legal talent each company brought to the table, they've got a way around any regulatory hurdles. The only real concern they have is anti-trust, and they have a credible argument that they do not dominate the market. That's why their presser is already setting the stage by saying the satellite broadcasters compete against iPods, internet radio and terrestrial radio ... not against other satellite delivery systems.

It's a solid argument. Consumer's have tons of choices for media content ... satellite is just one of dozens of options for obtaining your content.

My guess is rather than maintain seperate lineups, they combine redundant stations (ie, music) and allow subscribers to choose a la cart for others (such as a "political" package with all the talking head shows, an "entertainment" package with Stern and O&A, etc. etc).