epiac1216: Sirius and XM: Merger in the Skies

epiac1216 (

epiac1216) wrote,
@ 2007-02-20 08:36:00

Current location:	Republic of Panama
Current mood:	anxious
Current music:	Blue Eyes Crying in the Rain by Willie Nelson
Entry tags:	satellite radio

Sirius and XM: Merger in the Skies

After several months of negotiations, it was finally announced yesterday that Sirius and XM would merge. At his moment it is uncertain if it's a merge between equals or if Sirius actually bought out XM.

According to Yahoo News "Sirius Satellite Radio plans to buy U.S. rival XM Satellite Radio for $4.6 billion in stock to bring entertainers such as Oprah Winfrey and shock-jock Howard Stern under one roof, but a top regulator said the deal would face a tough time winning approval."

Under the agreement announced by the two companies on Monday, XM shareholders would receive 4.6 Sirius shares for each XM share held, or a 21.7 percent premium based on the two companies' Friday closing prices.

The deal to create a company with about $1.5 billion in 2006 revenue could benefit fans of Stern, Oprah, singer Bob Dylan, Major League Baseball and motivational guru Deepak Chopra, whose programs are split between the services. In time, subscribers may be able to pick the shows they prefer and pay a related monthly fee, much like cable TV.

I work for a call center in Panama that provides customer service to XM Satellite Radio's customers, so this news will certainly affect our call center in Panama. If Sirius purchased XM, then it means that there will be many changes in the future. I hope I will not lose my job because of this. They say that when elephants fight, the only one that gets hurt is the grass underneath.

It's expected that it will not be an easy task to get the merger through. The proposed merger will likely face objections from terrestrial radio companies and undergo tough scrutiny from regulators that want to ensure consumer prices do not increase as a result of less competition.

Attendees look at satellite radio receivers at the XM satellite radio display at the Consumer Electronics Show (CES) in Las Vegas, Nevada, January 2007.