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XM Satellite Radio/Sirius Satellite Radio Merger Deal

On February 19, 2007, it was announced that Sirius satellite radio and XM satellite radio would have a corporate merger if approved by the FCC. This would mean that they would become the sole satellite radio provider in North America, giving them a monopoly over the North American satellite radio market.

Depending on the way this these two companies go about this merger this could spell happy days or doom for the average satellite radio subscriber or anyone looking into becoming a new subscriber.

First of there's the corporate side of this merger deal, this could possibly make Sirius and XM stock very valuable as large shareholders could sell stock to the open market for a large profit, but it could tern around and blow up in your face leaving u with a severe lose of capitol. There is a chance that the FCC could find this merger deal to be a violation of anti-trust laws and nullify there merger killing it dead in its tracks, there forth making the stock go on a death drop strait downward until it eventually brakes even.

Benefits for the average consumer, benefits for the average consumer-subscriber include the following. Both companies have the exclusive rights to certain sports coverage and big name celebrity talk show hosts the proposed merger would bring all of there exclusive content onto one receiver for the subscribers. Product development would increase resulting in the development of cheaper, more durable receivers, with better built in abilities and better reception quality.

Consumer awareness groups have pointed out one major technical flaw if the merger was allowed to happen. Both companies' receivers are incompatible with each other meaning that if they merge u are going to have to buy a whole new receiver pack.

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Comments (1)
#1 by mr.zach, Jun 20, 2007
please post your coments and opinions obout my article and its subject.
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