XM and Sirius to announce merger today?
updated 01:15 pm EST, Mon February 19, 2007
XM, Sirius merger today?
Rumored for months, the New York Post is claiming that XM and Sirius may announce a merger later today, following a weekend of intense negotiations which could still collapse at any time. The primary issue is said to be anti-trust concerns, as a merger would create a monopoly over satellite radio in North America, possibly running afoul of US law despite weakened regulations. The financial incentives could be worth it for the companies, however; analysts predict savings of almost $7 billion per year, and the combined subscriber base would amount to over 12 million people. There would also be less hesistance with the public as a result of competing standards. If the deal is announced, it may takes as long as 15 months to be approved by the US government.
