Will such a business merger help the growth of this medium and at what price to subscribers?
Allowing both companies to operate as a single entity could simultaneously create new positive and negative repercussions.
XM and SIRIUS claim such a merger would be to everyone's advantage, but some critics claim programming and choice will be subjugated to business expediency.
Is a merger fair to both subscribers and providers?
Current Status
Although subscribership continues to grow, both XM and SIRIUS continue to lose money.On May 13, 2008, The New York Times reported SIRIUS' latest quarterly loss was $104.1 million dollars and XM's net loss was $129 million.
Both companies are awaiting a decision from the Federal Communications Commission on the proposed merger.
Background
On February 19, 2007, XM Satellite Radio and SIRIUS Satellite Radio announced they had entered into an agreement to merge the companies, subject to regulatory approval.Under the terms of the agreement, XM shareholders will receive a fixed exchange ratio of 4.6 shares of SIRIUS common stock for each share of XM they own.
Mel Karmazin, currently Chief Executive Officer of SIRIUS, will become Chief Executive Officer of the combined company and Gary Parsons, currently Chairman of XM, will become Chairman of the combined company.
