Author Topic: XM and Sirius Satelite Radio Have MERGED  (Read 1287 times)

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Offline tomterp

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Re: XM and Sirius Satelite Radio Have MERGED
« Topic Start: February 19, 2007, 10:16:27 PM »
The merger will have to be approved by the FTC, Federal Trade Commission, I believe.  As mentioned earlier in the thread, they will claim their competitors are terrestrial and internet radio stations, not each other.  To a certain extent they have a pretty strong argument.  Say each one has 5% of the total market, together 10%.  Are they trying to steal customers from the other guy's 5% or from the 90% of other folks out there?  

EDIT:  From hearing additional news stories about this, a key regulator is the FCC, or Federal Communications Commission, which has a rule that basically bars monopolies from satellite radio.  This is considered the top hurdle to overcome in the contemplated merger.

It is however, bad news.  I could easily see them cutting services and raising prices.  At least I just renewed for 2 years, and I think they have a long term deal with MLB, so okay for a while.  It would be okay if they consolidated similar music formats, they could have some economies there without impacting the product much.