technology firegeezer on 30 Jul 2008 12:53 pm
Sirius and XM SatRadio Merger Completed
AFTER 17 MONTHS OF REGULATORY HURDLES and lobbying, the long-awaited merger of the Sirius and XM satellite radio services was completed yesterday (Tuesday). The new company is named “Sirius XM Radio.”
While this may be the only chance for the satellite radio format to survive and offer millions of dollars in savings, the new, combined stock immediately dropped yesterday when it was disclosed that the new corporation is starting out with $3 billion in debt.
The merger was in actuality an acquisition of XM by Sirius. The history of large losses combined with a slowing of signing up new subscribers has left investors wary. One of the concessions given before FCC approval was recieved is to offer an a la carte mode of subscribing that allows customers to chose which stations they want to pay for and receive. So this may, with good publicity and advertising, encourage a wave of new subscribers to sign up.
Reuters has an analysis of the merger HERE.
