02.19.07
Sirius and XM radio announce merger
The 2 major players in the burgeoning satellite radio industry have announced a deal to merge into a single company. The move, announced as a merger of equals, will combine the services of both companies to create a much more comprehensive lineup to subscribers. Sirius CEO, Mel Karmazin, will lead the new company with XM CEO, Hugh Panero, sticking around only until the deal is closed. While the deal has been announced, it still faces several hurdles including antitrust approval and provision with the Federal Communications Commission that specifically forbids the two companies from combining. What this move means for subscribers is still a question that can’t be answered. On one hand, subscriptions may go down, due to reduced cost and shared resources, but on the other hand may go up as a result of price fixing due to the monopolistic nature of the merge.
