Sirius and XM-possible merger ?

[LiviaOlivia]

New York Post
SATELLITE CHAT
By TIM ARANGO

Satellite radio rivals Sirius and XM have been cozying up to each other, The Post has learned. While talks have not advanced far, executives from both sides have been meeting lately to discuss the possibility of a merger, according to several sources close to the matter.

Sources say the executives have not yet discussed price. They have, however, been weighing any potential antitrust concerns that would arise from a deal, which would create a monopoly in the nascent satellite radio business.

~snip~

The satellite radio industry is currently a Federal Communications Commission-licensed duopoly, and both XM and Sirius are hoping they can convince the FCC to redefine the market to include all content over wireless services. As mobile technology in the United States advances, XM and Sirius are hoping the FCC will consider satellite radio as part of the broader industry of delivering music and other content through mobile devices, such as cellphones, say sources.

A merger between XM and Sirius — neither of which is yet profitable — would alleviate a price war for premium content and allow the two companies to save significant amounts of money on marketing costs.

~snip~


http://www.nypost.com/business/38810.htm

[codswallop]

1. This was inevitable

for the monopoly to reach full bloom.

[mstrsplinter326]

2. sweet, maybe Microsoft will finally buy Apple now. nt

[LiviaOlivia]

3. Sirius denies merger story

The New York Times
January 26, 2005
Sirius Satellite Radio Widens Quarterly Loss
By THE ASSOCIATED PRESS

Filed at 7:29 p.m. ET

NEW YORK (AP) -- Sirius Satellite Radio Inc. Chief Executive Mel Karmazin has not met with top executives of rival XM Satellite Radio Holdings to discuss a merger between the two broadcasters, Karmazin said on a conference call Wednesday after Sirius reported a wider fourth-quarter loss.

"I have not met with the chairman or CEO, so I have no idea where any of this came from," Karmazin said in response to a New York Post story that claimed Sirius and XM have started early merger discussions.

Marquis Investment Research analyst Greg Gorbatenko said in a research note that he believes the merger is unlikely to happen because "we doubt it would pass regulatory muster."

~snip~

http://www.nytimes.com/aponline/business/AP-Earns-Sirius-Satellite-Radio.html

[Armstead]

4. And the Democrats will sleep though this one too

At some point the Democrats have to wake up to the fact that merger-mania in all industries is a major problem.

But they won't if they continue their own "friendly talks" to become an affiliate of the Republican Party.