Satellite radio titans might finally merge
Last modified on Monday, 28 January 2008 13:39
The merger deal between satellite radio titans, Sirius and XM, was announced last February and the $4.6 billion deal has been hung up in legal wrangling in Washington, D.C. since the announcement. It looks like an end might finally be in sight, as the Feds have finally granted regulatory approval to proceed with their merger plans. The deal required regulatory approval because many worried that the merger was not in the public interest since it would create a satellite radio monopoly.
According to various reports, Sirius and XM are expected to receive the “green light” to go ahead before the end of this February. While the review of the merger has taken longer than expected, the merger should benefit consumers in the long run with a single source for content, rather than the exclusive content deals that both companies enjoyed. The combined company is expected to continue to be operated under the Sirius name.
After the merger, at some point analysts suggest that Sirius will move to bring users onto one platform in the future, rather than trying to operate two independent satellite radio infrastructures. With the addition of the satellites from XM, it will be interesting to see what can be done with all of the additional capacity that Sirius will then have available; in the long term this could lead to expansion into additional markets or the addition of more content.