XM And Sirius To Merge

Updated:

January 11, 2017 11:26 am

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Satellite radio giants XM and Sirius are set to merge soon, after 16 months of deliberating and deal-making. Through the deal, Sirius would gain control of XM holdings and stations, giving Sirius a monopoly over the satellite radio market.Satellite radio giants XM and Sirius are set to merge soon, after 16 months of deliberating and deal-making. Through the deal, Sirius would gain control of XM holdings and stations, giving Sirius a monopoly over the satellite radio market.

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The FCC, however, is taking steps to ensure that Sirius’ expanded market does not harm the consumer. Thus, the two stations must vow to meet a series of conditions before the merge can be finalized. Two of the more important conditions for consumers are the FCC’s demands for a cap on prices and the provision of interoperable radios. Upon the proposal of the conditions, FCC Chairman Kevin Martin said that he viewed the merge as a “transaction [that] would be in the public interest.”

The value of shares of the two companies increased pending announcement of the merge, and both companies agreed to freeze their marketing during the process of the deal. If the merge is approved, it is expected to move $4.6 billion in shares from the two companies.

Both satellite radio companies have faced a lot of competition from terrestrial radio and the increasing popularity of the iPod, so this move really does have consumer-friendly potential in that Sirius will be able to provide its listeners with more content and availability.