Articles

Fate of large XM Sirius Merger Could Be Decided Today

In economics/money, Satelite Radio, Technology on December 4, 2007 by Editor Z


Today is supposed to be the date by which the Federal Communications Commision (FCC), rules whether or not Sirius Satellite Radio and its sole competitor XM Satellite radio can merge to form one satellite radio company. XM and Sirius are currently the only two satellite radio providers.

Skeptics and terrestrial radio (free, non-paid regular radio), are worried that such a merger would violate anti-trust laws. Some others believe it would create a monopoly where only one colossal Satellite radio company, dominates the entire Satellite radio market.

Backers of the possible merger however state that Satellite radio already has competition in terms of alternate avenues for listeners to listen to music, news, and sports; such as ipods, Internet radio, and terrestrial radio.

The ruling was and is expected today, but some experts are saying that the ruling could be delayed.

MY TAKE: Don’t know how I feel about this one. I am a Sirius satellite radio subscriber and listener, as many whop fervent this site are aware. However in this age of media deregulation in ownership, where a scant number of corporate giants tower over the public with loud voices that are beginning to sound almost identical to the ear, any merger should be questioned. Other venues and possibly other satellite radio companies in the future must be able to have a decent opportunity to flower in the market place and not be stomped out by the iron foot of one all powerful provider.

Correction: (4:50PM Eastern time)- In this post I stated that the Department of Justice would be handing down a ruling. My bad, today is the end of the Federal Communication Commision’s 180 day period of examining a possible merger. The ruling on whether the two are going to be able to merge is what is being decided today, while later on the Justice Department will have to approve the merger if it passes muster with the FCC. Again sorry for the error.

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One Response to “Fate of large XM Sirius Merger Could Be Decided Today”

  1. i think it would be too huge. ONE company means less choice & too much growth for us.

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