http://www.nypost.com/seven/02192007/business/heavenly_deal_business_peter_lauria.htm

I wonder what that means for subscribers.

New units? Higher fees?

I just leased a Dodge Ram last summer, and it came with a free one year subscription to Sirius, and I'm not really impressed with it. I'm really into music, and I listen to very specific things, and Sirius just doesn't impress me that much. Theres a few good rap and rock stations, then a good techno station, and really the only other good thing are the comedy channels.

I was so pissed off at sirius when I was driving back up to school during game 3 of the ALCS, I got too far from Detroit and lost 1130, and none of Sirius' 9 sports channels were carrying the fucking ALCS.

I've had XM for about a year and a half and love it.

Very interesting stuff.

My first thought is that this is bad news, competition is always good.

My first thought is that this is bad news, competition is always good.

I don't know if that's really going to be the case here. First thought is that you've got both XM and Sirius channels. What more do you really need?

That's good news until the rates double because they have no reason to keep them low anymore.

Especially since so many people are hooked by now.

So you are telling me I can get both stations channels for free now though? Because that would be sweet.

I KNOW Moxie can further elaborate, but this is "Economics 101" stuff, when you have a new and super prohibitivley expensive venture like this start up, the "competition" is really a race to see who amasses more resources to buy the other one out. This merger was inecitable from day one. You just hope the rates DON'T double, but what you gonna do now that you're sucked in?
That's the way it works with utilities, cable TV, and now this gig.
The real genius is creating a market that wasn't there before, and doing a good enough job to make it a necessity, and KA CHING!!! Now the "market"(suckers) can't live without your gadget!
I've always said: The rich get richer cuz the rest of us are busy getting out of their way.*
From the book "Idiotic Thoughts By Zip Goshboots", subtitled "I interviewed Zip Goshboots, but honestly, officer, I don't know what happened to him after that!"

I don't regret converting my home made satellite into a cappuccino machine. Those morning cappuccino's are good.

Sirius, XM see deal closing in 2007

By Paul Thomasch and Kenneth Li
1 hour, 12 minutes ago

NEW YORK (Reuters) - Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. pledged on Tuesday to work with regulators to close their proposed $4.9 billion merger by year's end, seeking to calm concerns that U.S. antitrust authorities would block the deal.

Sirius (Nasdaq:SIRI - news) Chief Executive Mel Karmazin, a seasoned dealmaker and media veteran, said the goal of the deal was not to raise consumer prices but to boost subscriber growth by combining the two satellite radio services and bringing stars like Howard Stern and Oprah Winfrey under one roof.

But he acknowledged that Sirius's planned takeover of XM (Nasdaq:XMSR - news) has been clouded by worries over scrutiny from the U.S. Federal Communications Commission and the Justice Department, which are most concerned about the drop in competition boosting prices for consumers.

"I'm sure the regulatory approval process is on everybody's mind," Karmazin told a conference call with analysts. "We believe there's a solid basis for approval and are committed to work with regulatory agencies to assure this approval."

Concerns about the approval, however, appeared to cap the share prices of both companies, which rose sharply on the first trading session after the deal was announced, only to backtrack later. By afternoon, shares of Sirius and XM were up 7 percent and 13 percent, respectively.

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

The deal values XM at about $4.9 billion based on current market prices and the latest regulatory filing, which says XM has 268.5 million outstanding shares, excluding convertible securities.

"We think there is no question that such a deal is a huge positive for both companies; the only question is whether or not such a deal will pass muster with the Department of Justice and the FCC," Citigroup analyst Eileen Furukawa said in a research note.

Sirius and XM will argue that their combination would not hurt consumers because satellite radio operators already face meaningful competition from terrestrial radio, wireless music devices or portable players like Apple Inc.'s (Nasdaq:AAPL - news) iPods.

"We believe that the planned XM-Sirius merger is more likely than not to receive government approval, though we acknowledge that it's a close call, as the two satellite radio companies will be combining into one and have to rely on untested arguments about competition and convergence in the broader digital," Blair Levin of Stifel Nicolaus wrote in a note.

PUBLIC INTEREST

Sirius and XM said they expect shareholders to vote on the "merger of equals" in four to six months, and receive regulatory approval in about nine months.

The deal would create a company with about $1.5 billion in 2006 revenue and bring together shows from shock-jock Stern, entertainer Winfrey, singer Bob Dylan, Major League Baseball and motivational guru Deepak Chopra.

Subscribers may eventually be able to pick the shows they prefer and pay a related monthly fee, much like cable TV.

First, though, the companies would have to supply their customers with technology that would allow them to tap into both services. Some analysts have expressed concerns that product and service development could suffer as executives faced regulatory scrutiny.

FCC Chairman Kevin Martin, a key player in the approval, weighed in on the deal on Monday, saying that the hurdle for a go-ahead would be high.

Meanwhile, XM Chairman Gary Parsons, who would continue as chairman of the combined company with Karmazin taking on the role of CEO, said on Tuesday the companies were committed to the merger and would see it through any political or regulatory questions.

"We would not have entered into this transaction ... if we were not confident this was in the public interest," he said.

Shares of Sirius were up 25 cents at $3.95 after hitting a high of $4.06. XM was up $1.80 at $15.78 after hitting a high of $16.36.

I just got this email too.


February 20, 2007

Dear XM Radio Subscriber:

We want to share with you some exciting news: Yesterday, in Washington DC, we announced XM Radio will be merging with Sirius Satellite Radio to form the premier digital audio service.

The merger will create a satellite radio company that will provide consumers
across the country with more and better premium radio programming. The combined company will be able to compete better in what has become a very complex and dynamic entertainment market.

Where today our exclusive contracts mean you had to choose between baseball and football or Oprah and Martha Stewart, the new company will seek to ensure that in the future, you will be able to access both companies' programming. And, once we are fully integrated, those of you who have factory-installed satellite radio will no longer be limited to the programming provided by the exclusive satellite radio service chosen by their car manufacturer.

This merger should be completed in late 2007 or early in 2008. Throughout the year, we will provide updates on how the merger is progressing and information will be available at our website, www.xmradio.com.

Between today and the merger date, as well as during the period immediately after the merger date, all of your services will remain the same. The channel lineup, the customer service number, the great music technology, and the XM Radio web site will all remain unchanged and there will be no disruption to service. But, if you have questions, information will be available and maintained on our website, and you can contact our Listener Care team at 800-XMRADIO, with questions and concerns.

XM Radio continues to be committed to providing you the highest quality audio entertainment and customer service available today. After the merger, our new company will be able to offer you the most exciting listening experience in radio.

Sincerely,

Hugh Panero
CEO, XM Satellite Radio

Damn right fuckers better not be thinking about taking my Oprah from me!

Will you be able to use the same radio? eg) my friend got a sirius setup for Christmas, but he hasn't subscribed yet. Will that unit still work for the new merged stuff?

I will not be surprised if we have to buy the sports packages like cable. I'm sure they can get $30 for the nfl package.

http://articles.moneycentral.msn.com/Investing/SuperModels/WhySiriusIsStillDoomed.aspx
Check this out. It's about the proposed merger between XM and Sirius, and whether or not it will save satellite radio.

The merger announcement lifted Sirius by about 10% on Monday, and the company issued an earnings report Wednesday that was not quite as terrible as usual. But make no mistake: The death march is on. If the merger deal fails to gain regulators' approval -- and the betting now is that its chances of success are less than 30% -- Sirius shares are headed back under $3 by the end of the year.

Is anybody getting a better rate for XM than $12.95/mo?

It's time for my renewal and I want to see if I need to request a lower rate.