Sirius and XM Announce Merger
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“XM Satellite Radio (NASDAQ: XMSR) and SIRIUS Satellite Radio (NASDAQ: SIRI) today announced that they have entered into a definitive agreement, under which the companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $13 billion, which includes net debt of approximately $1.6 billion.,” according to a company press release.
Greater Programming and Content Choices — The combined company is committed to consumer choice, including offering consumers the ability to pick and choose the channels and content they want on a more a la carte basis. The combined company will also provide consumers with a broader selection of content, including a wide range of commercial-free music channels, exclusive and non-exclusive sports coverage, news, talk, and entertainment programming. Together, XM and SIRIUS will be able to improve on products such as real-time traffic and rear-seat video and introduce new ones such as advanced data services including enhanced traffic, weather and infotainment offerings.
This is good news for consumers. Personally, I held off picking up a satellite radio, and when I bought my car, I wouldn’t take one with either because I always believed the two companies couldn’t survive on their own and I didn’t want to pick the wrong company and then be stuck with non-functional hardware. I also wanted some programming from each and neither seemed more attractive to me over the other. It was clear to me that the economics just wouldn’t work and either a merger, buy out, or bankruptcy was inevitable. I’m glad it didn’t come to the last.
Do you have XM or Sirius? How do you feel about the merger? Some shows and stations will probably be dropped, are there any you cannot live without?
[tags]xm radio, sirius radio, satellite radio, radio, xmsr, siri[/tags]
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6 Comments
James Britton
February 20th, 2007
at 4:42am
I don’t have either, but how will this deal go through? I seem to remember that the FCC clearly stated in the books that neither company will ever be allowed to merge. I own shares of SIRI and it would be nice to see one company, but I just don’t see how they will get FCC approval without some major string pulling.
Corey Maertz
February 20th, 2007
at 10:33am
Its hard to say, being a Sirius subs. I really do not want to lose some of my programing. I have had XM in the past and wasn’t to excited about it, however something about Sirius did it for me.
I do think that the FCC does need to look into the fact that Sirius|XM do have competition. Its Free over the air radio and HD Radio. At least here, the local radio stations play clips bashing XM and Sirius all the time. So, as far as creating a monopoly, they are the only sat. radio company, but its not like you don’t have a choice as far as what to listen to.
Ken Cadieux
February 20th, 2007
at 11:26am
I have been a loyal subscriber to Sirius Satelite radio from the begining. I tell you, Satelite radio is like getting a new fridge with an ice maker on it- you lived without it no problem but once you have it, you can’t live without it. I don’t go anywhere without listening to Sirius weather it be in the car or at work. I think the merger is a great oppurtunity for both companies. They both have their strong areas and would benefit from each other. Owning sirius stock, I’m excited to see what a merger would do for the radio I love so much. I just hope they keep the sirius name.
Danny Kidd
February 20th, 2007
at 1:50pm
I’ve been an XM subscriber for about 5 years and am excited about the merge. As long as they give us more choices of channels.
I prefered XM because Sirius tended to have greatest hits channels (Hair Nation, Buzzsaw, Octane, and Hard Attack) whereas Boneyard tends to play SOME new stuff from old bands. Please lets not start a flame war, hopefully we’ll get lots of great music with the merger!
The only bummer was, I was ready to buy new hardware but will wait now.
Logan C
February 20th, 2007
at 3:37pm
Well I am a huge Sirius fan, I enjoy the channels especially Hard-Attack. Big reason I went with Sirius was the coverage especially in the Northern remote areas of British Columbia, CA. Just less drops…even in the Queen Charlotte’s. That said, I just hope that the merger will bring the best of both Stations together. Look forward to seeing what comes of it.
Rodney
February 20th, 2007
at 7:10pm
I had an XM Roady, loved it, great sound even over FM transmitter. But the reason I got XM was to be able to listen to Air America.
I bought a Mazda 2 years ago, and they’re prewired for Sirius, which also had Air America, plus no wires and the sound would be directly wired into the head unit, so better, right?
Wrong. Sirius sound quality is poor compared with XM, and Air America signed an exclusive deal with XM *2 WEEKS* after I bought my car. I’ve continued to pay the $13/month, but I don’t listen to it more than once a month, and then only for traffic (which XM does better, IMO).