Monday, February 19, 2007
XM - Sirius to Merge
The two players in the Satellite radio space have announced plans to merge. 14 million users are rejoicing, with few casting wary eyes toward the attendant loss of competition. That could be a sticking point, as current rules expressly forbid one company from acquiring the other. The expectation on the part of many pundits and analysts is to see a waiver of that rule. A newly merged broadcast giant will likely put additional pressure on already struggling local radio broadcasters. The complexion of media creation and distribution is undergoing tectonic realignments, as are the players and the content. Given the likelihood of robust growth in net-based content distribution, including streaming radio broadcast, the only long-term survival model for the satellite delivery systems was to merge.