[Infowarrior] - Rumor: XM and Sirius May Be About to Merge

[Richard Forno]

(I thought the FCC told them recently that they couldn't merge??   -rf)

XM and Sirius May Be About to Merge
By THE ASSOCIATED PRESS
Published: February 19, 2007
http://www.nytimes.com/aponline/business/AP-XM-Radio-Sirius.html

Filed at 1:33 p.m. ET

NEW YORK (AP) -- Satellite radio rivals XM and Sirius could announce a
merger deal as early as Monday, The New York Post reported.

The Post, citing an unnamed person familiar with the matter, said that XM
Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. were in
advanced negotiations but that the deal could still fall apart.

Spokesmen for both companies didn't return calls and e-mails seeking
comment.

Speculation about a potential merger between the two companies has persisted
for months, and analysts and company executives say such a deal could have
significant cost savings. However, many remain skeptical that a deal would
be able to pass regulatory scrutiny.

A clause in the Federal Communications Commission ruling granting licenses
to the satellite radio operators says that one company cannot own the other
one, but the FCC would have the power to change the rule if it chose to. Any
deal would also have to pass an antitrust review at the Department of
Justice.

The New York Post reported that XM's chairman Gary Parsons would likely keep
that title in the combined company, while Sirius' CEO Mel Karmazin would
become CEO. It wasn't clear if XM's CEO Hugh Panero would remain.

The shares of both Sirius and XM tumbled more than 40 percent last year on
concerns about whether the rapid growth both companies had seen would
continue. Both stocks have gained support in recent months from speculation
that they would attempt to merge.

XM's stock rose again on Friday after an analyst said in a research note
that a merger would have a good chance of passing regulatory hurdles.