quote: Dean KolletDon't be so sure. I dug up one of the articles on the subject.
something tells me that they will never merge....that's like every cell phone company saying they are "wireless content services" and then merging into one...
quote:From: Merger Story
E-MAIL STORY PRINTER FRIENDLY FOXFAN CENTRAL
Sirius, XM Merger in the Works?
Monday, January 31, 2005
By Tim Arango
Satellite radio rivals Sirius (SIRI) and XM (XMSR) 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.
The two companies have talked in the past about merging, but the discussions never got to an advanced stage. But in the wake of Sirius' hiring of former Viacom President Mel Karmazin (search) in November, the issue has gained renewed urgency, sources said.
"Mel is a roll-up guy, a deal guy," said one source close to Karmazin.
While many people in the media industry say it's inevitable the two companies will eventually merge, sources say a deal could be at least a year away.
A spokesman for Sirius said, "as a company we do not comment on rumor or speculation." An XM spokesman did not return a call seeking comment.
The satellite radio industry is currently a Federal Communications Commission (search)-licensed duopoly, and both XM and Sirius are hoping they can convince the FCC to redefine the market to include all content over wireless broadband 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.
Merrill Lynch analyst Laraine Mancini said in a conference call earlier this week that one of the chief risks of investing in the companies' stock is a potential price war and "irrational bidding" for content.
Last year, Sirius announced a blockbuster $500 million deal to bring Howard Stern (search) from traditional radio to satellite radio beginning in 2006. While some hailed the deal as a milestone for the fledgling sat radio industry, some on Wall Street said the company overpaid.
quote: Brad MillerHow is identifying yourself a commercial?
Sirius boasts "commercial free radio", but after virtually every song you have to listen to an announcer "you're listening to Sirius satellite radio, blah, blah, blah". THAT IS A COMMERCIAL!!! Then some stations have DJs who are just not funny on there too.
Is there a satellite music radio network that is TRULY commercial and DJ free, without even babbling about how wonderful their station is?
quote: Brandon WillisThat will only happen if more of the general public wants to support listener sponsored radio.
What we need, though, is more non-commercial stations on the regular broadcast bands.
quote: Mark J. MarshallWe've been selling it since it came online in this part of the country, and they've had DJs on some of the channels ever since day 1 as far as I know.
I thought XM didn't have DJs originally, and they added them later after getting that suggestion from listeners.
quote: Jennifer PanWell, I'm a trucker and it's a Godsend for me. I listen to XM about 14 hours a day. A good deal of satrad (think I just coined a term) listeners are truckers. I'm paid up a year at a time, so I don't have to worry with it. I'm also on my brother's family list, so that's a couple bucks off the monthly charge, too.
I'm still "iffy" about "paying" for radio.
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