XM / Sirius Satellite Radio merger is a done deal?

[Toddzilla]

At least so says the New York Post:

http://www.nypost.com/seven/02192007...ter_lauria.htm

Originally Posted by NYPost

February 19, 2007 -- Satellite radio operators Sirius and XM are expected to announce their long-awaited merger today, according to a source familiar with the deal.

The two sides were locked in negotiations over the weekend trying to hammer out a final agreement with an eye toward going public with the merger today in Washington, D.C., where XM is based, this source said.

Talks were still going on at press time and the deal could fall apart at any time. With antitrust issues of paramount importance, this source said lawyers for both companies were working overtime to fine-tune the language of the agreement and frame the discussion around the deal itself and not regulatory concerns.

[Ksyrup]

Woo-hoo!

Oh wait, this is somehow going to cost me more a month, isn't it?

[terpkristin]

Holy moly, this is quite interesting!

I thought, though, that the FCC (or was it FTC) was going to block the merger?

/tk

[mauchow]

I wonder what'll happen to those of us who have nice long subscriptions..

[jeff061]

I can't imagine they'd hike the rates. They are still competing with a "free" format.

[Honolulu_Blue]

Originally Posted by terpkristin

Holy moly, this is quite interesting!

I thought, though, that the FCC (or was it FTC) was going to block the merger?

/tk

The FTC/DOJ (more likely the DOJ) and FCC would certainly take a long, hard look at the deal. The question really boils down to whether there is a separate market for "satellite radio" or the market includes "satellite" and "terrestial" radio.

If I recall in the failed satellite TV merger, the FCC and DOJ defined the market as including only cable and satellite. It was some sort of mult-channel distribution market definition that excluded terrestrial TV. They also found that, for certain consumers, satellite TV was there only option and, therefore, there would be a merger-to-monopoly for those customers and for the others (who had access to cable) it would lead to a duopoloy.

I am not sure the same analysis would apply to radio, since pretty much anyone get can terrestrial radio anywhere and there are multiple providers of it (as opposed to just one cable company). It'll certainly be interesting.

[Ksyrup]

This area of the law is foreign to me. Can you "force" two companies of an emerging technology to remain separate, yet operate in the red? It would seem to me that we would benefit from having one solid company to provide a service we otherwise would not have, even if it costs us more. In some respects, that's a "choice" for us to make in and of itself. Since you can get talk radio and hip-hop and sports programming and classic rock on local free stations, it doesn't seem necessary to require more than 1 company to provide a type of radio broadcast that companies are not jumping at the opportunity to provide at this point in time. I realize the merger would make it that much more difficult in the future for a new company to compete, but then again, I could see regional providers making inroads years down the line, much like in the airline industry.

Are there any smaller satellite providers - I don't know of any?

[Toddzilla]

I wonder what this means for the long-proposed and long-awaited "generic" satellite radio receiver, which could be used for either XM or Sirius (or some other future provider).

I'm happy about the merger, so long as there isn't any major house cleaning talent-wise (O&A, Howard, Oprah, etc).

The possibility of being able to listen to every MLB and NFL game is pretty cool, however.

[Honolulu_Blue]

Originally Posted by Ksyrup

This area of the law is foreign to me. Can you "force" two companies of an emerging technology to remain separate, yet operate in the red? It would seem to me that we would benefit from having one solid company to provide a service we otherwise would not have, even if it costs us more. In some respects, that's a "choice" for us to make in and of itself. Since you can get talk radio and hip-hop and sports programming and classic rock on local free stations, it doesn't seem necessary to require more than 1 company to provide a type of radio broadcast that companies are not jumping at the opportunity to provide at this point in time. I realize the merger would make it that much more difficult in the future for a new company to compete, but then again, I could see regional providers making inroads years down the line, much like in the airline industry.

The short answer to the question is "yes", the government can "force" two companies to remain separate if they find that there will be a "substantial lessening of competition" in a relevant market. That's sort of the basic threshold test, but it's vague and there are a host of arguments to be made. One recognized one being the "failing firm" defense, in which you argue that, but for the merger one of the two companies would go out of business, so the competitive impact of the merger would be same as a non-merger (one company left, instead of two), but there are benefits to consumers if you allow the merger to go ahead as opposed to just letting one of the companies die off and all of their investments go to waste.

[Ksyrup]

Yeah, that's what I was getting at. I think that's a strong argument to make here, where it seems like this sub-industry is benefitting us by providing an advanced-technology service that isn't readily available and isn't yet conducive to full-scale market participation anyway.

[panerd]

Well put me down as somebody who bought Sirius for its content and had zero interest in XM. (I am certain there are people who have the exact opposite view) I hope the merger doesn't change either offering too much or they may lose a customer to the MP3 route.

As somebody who bought XM stock at the worst possible time ($25 a share) I do look forward to seeing what happens tommorow. Of course the holiday gives the government a day to make their announcement and actually send the stock spiraling down again.

[panerd]

I read the original post as NY Times and now that I reread the post I see it was written by the National Enquirer of newspapers. We should end the discussion until a legit news source actually confirms this story.

[Ksyrup]

There are all sorts of discussions and articles about this, but I assume they are all based on the original report. But if Forbes and respected analysts are discussing it, I don't see why we shouldn't.

[panerd]

Originally Posted by Ksyrup

There are all sorts of discussions and articles about this, but I assume they are all based on the original report. But if Forbes and respected analysts are discussing it, I don't see why we shouldn't.

I don't mind the discussion, it's interesting. I am just questioning the "done deal" coming from the NY post. Analysists have been discussing this merger for months, even years, but the FCC has always said it aint gonna happen. I want to know what new information the Post has that makes this deal done. It it happens today I will eat my words, but I have seen plenty of NY Post "exclusives" fizzle in the wind.

[rkmsuf]

Howard will clear this all up tomorrow.

[molson]

Originally Posted by rkmsuf

Howard will clear this all up tomorrow.

I think he's off this week.

[rkmsuf]

Originally Posted by molson

I think he's off this week.

bah, thought it was just today

[sooner333]

I would actually be more inclined to get sat. radio if the merger goes through. I like the sports content of XM for the baseball games, but Sirius is better for college sports. Not getting both has made me less likely to get either one. Plus, I don't really drive that much.

[14ers]

Originally Posted by Toddzilla

I'm happy about the merger, so long as there isn't any major house cleaning talent-wise (O&A, Howard, Oprah, etc).

You are not at all concerned about price?

Something tells me I will be paying at least $25.00 a month this time next year for the same service I have now with XM.

[Ksyrup]

Price will be an issue, but if you wanted all of the programming from both right now, how much would you be paying?

Maybe they'll compromise and have some sort of "tiered" packages like cable/satellite providers do now, where you only pay $15 a month for the XM block, etc. Then you'd have to choose whether you want football or baseball, or whether to have it all and pay more. But at least that way, you'd get a choice.

Technology-wise, I wonder how this would work with existing receivers?

[CU Tiger]

hmmmm..
If you had a lifetime sirius subscription and we are to believe the company will emerge under XM trade name, I wonder what that means for your $299 lifetime deal...

I had a sirius lifetime and then bought xm and pay for it just because I liek there offering better. If I could somehow now get XM's channels and be free for eternity or 2100 (like original "contract" actually said) that would kick AZZZZ

[molson]

Originally Posted by 14ers

Something tells me I will be paying at least $25.00 a month this time next year for the same service I have now with XM.

You could already get both XM and Sirius for a combined $25/month - who's going to pay that with largely redundant content? The industry isn't doing too great, this seems like a desperation move.

[molson]

Originally Posted by CU Tiger

hmmmm..
If you had a lifetime sirius subscription and we are to believe the company will emerge under XM trade name, I wonder what that means for your $299 lifetime deal...

It's really weird to think of Howard Stern promoting "XM radio", if that's indeed the trade name that emerges. I wonder if he has anything in his contract what Sirius agrees to in that regard.

[rkmsuf]

Originally Posted by molson

It's really weird to think of Howard Stern promoting "XM radio", if that's indeed the trade name that emerges. I wonder if he has anything in his contract what Sirius agrees to in that regard.

As long as Riley Martin and Bigfoot are retained I don't care.

[Ksyrup]

Originally Posted by molson

You could already get both XM and Sirius for a combined $25/month - who's going to pay that with largely redundant content? The industry isn't doing too great, this seems like a desperation move.

The problem is, though, that if they end up cutting a number of similar/same channels, they still have the specific channels that will be added together. If you have both XM and Sirius today, chances are you aren't paying $25 combined for 2 versions of ESPNews. You're paying for Stern, Anthony and Opie, MLB, NFL, college football/basketball, Oprah (haha), etc. So to get all of that in one place it's not inconceivable that they could still try to command the same price.

From the music perspective, it will be interesting to see how they marry up the channels. There are channels that have similar content/genres/audiences, but target them slightly differently. It will be disappointing to see some of those x-ed out as opposed to combined.

[rkmsuf]

Originally Posted by Ksyrup

The problem is, though, that if they end up cutting a number of similar/same channels, they still have the specific channels that will be added together. If you have both XM and Sirius today, chances are you aren't paying $25 combined for 2 versions of ESPNews. You're paying for Stern, Anthony and Opie, MLB, NFL, college football/basketball, Oprah (haha), etc. So to get all of that in one place it's not inconceivable that they could still try to command the same price.

From the music perspective, it will be interesting to see how they marry up the channels. There are channels that have similar content/genres/audiences, but target them slightly differently. It will be disappointing to see some of those x-ed out as opposed to combined.

Shade 45 isn't going down without a fight. There will be drive bys.

[JonInMiddleGA]

Could it happen? Perhaps.
But not without a change in the FCC rules put in place when the original licenses were issued, as they specifically state that the two licenses cannot be held by a single entity.

The FCC chairman is already on record as opposing the merger on those grounds, although there could always be an end run around the rules via Justice Department approval (argued on the basis that they don't compete with each other as much as with all other forms of delivery) or through a change in the existing rules.

But one or the other has to happen otherwise this cannot legally amount to anything except talk.

edit to add: One interesting possibility is that if the argument is made that satellite competes more with broadcast than with each other, then it seems logical that they would have to accept the same regulations that broadcast operates under, including content regulation. In that scenario, if that's the tradeoff, then I could see approval coming very quickly.

[stevew]

Originally Posted by Ksyrup

Technology-wise, I wonder how this would work with existing receivers?

Yeah, I just picked up a MyFi portable receiver for XM the other day...I hope it will still work.

[stevew]

SIRIUS and XM to Combine in $13 Billion Merger of Equals
Provides Consumers with Enhanced Content, Greater Choices and Accelerated Technological Innovation

Enables Satellite Radio to Better Compete in Rapidly Evolving Audio Entertainment Industry

Extraordinary Value Creation for Shareholders

Mel Karmazin to Serve as Chief Executive Officer and Gary Parsons to Serve as Chairman of Combined Company

WASHINGTON and NEW YORK, Feb. 19 /PRNewswire-FirstCall/ -- XM Satellite Radio (NASDAQ: XMSR) and SIRIUS Satellite Radio (NASDAQ: SIRI) today announced that they have entered into a definitive agreement, under which the companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $13 billion, which includes net debt of approximately $1.6 billion.

Under the terms of the agreement, XM shareholders will receive a fixed exchange ratio of 4.6 shares of SIRIUS common stock for each share of XM they own. XM and SIRIUS shareholders will each own approximately 50 percent of the combined company.

Mel Karmazin, currently Chief Executive Officer of SIRIUS, will become Chief Executive Officer of the combined company and Gary Parsons, currently Chairman of XM, will become Chairman of the combined company. The new company's board of directors will consist of 12 directors, including Messrs. Karmazin and Parsons, four independent members designated by each company, as well as one representative from each of General Motors and American Honda. Hugh Panero, the Chief Executive Officer of XM, will continue in his current role until the anticipated close of the merger.

The combined company will benefit from a highly experienced management team from both companies with extensive industry knowledge in radio, media, consumer electronics, OEM engineering and technology. Further management appointments will be announced prior to closing. The companies will continue to operate independently until the transaction is completed and will work together to determine the combined company's corporate name and headquarters location prior to closing.

The combination creates a nationwide audio entertainment provider with combined 2006 revenues of approximately $1.5 billion based on analysts' consensus estimates. Today the companies have approximately 14 million combined subscribers. Together, SIRIUS and XM will create a stronger platform for future innovation within the audio entertainment industry and will provide significant benefits to all constituencies, including:

* Greater Programming and Content Choices -- The combined company is
committed to consumer choice, including offering consumers the ability
to pick and choose the channels and content they want on a more a la
carte basis. The combined company will also provide consumers with a
broader selection of content, including a wide range of commercial-free
music channels, exclusive and non-exclusive sports coverage, news,
talk, and entertainment programming. Together, XM and SIRIUS will be
able to improve on products such as real-time traffic and rear-seat
video and introduce new ones such as advanced data services including
enhanced traffic, weather and infotainment offerings.

* Accelerated Technological Innovation -- The merger will enable the
combined company to develop and introduce a wider range of lower cost,
easy-to-use, and multi-functional devices through efficiencies in chip
set and radio design and procurement. Such innovation is essential to
remaining competitive in the consumer electronics-driven world of audio
entertainment.

* Benefits to OEM and Retail Partners -- The combined company will offer
automakers and retailers the opportunity to provide a broader content
offering to their customers. Consumer electronics retailers, including
Best Buy, Circuit City, RadioShack, Wal-Mart and others, will benefit
from enhanced product offerings that should allow satellite radio to
compete more effectively.

* Enhanced Financial Performance -- This transaction will enhance the
long-term financial success of satellite radio by allowing the combined
company to better manage its costs through sales and marketing and
subscriber acquisition efficiencies, satellite fleet synergies, combined
R&D and other benefits from economies of scale. Wall Street equity
analysts have published estimates of the present value of cost synergies
ranging from $3 billion to $7 billion.

* More Competitive Audio Entertainment Provider -- The combination of an
enhanced programming lineup with improved technology, distribution and
financials will better position satellite radio to compete for
consumers' attention and entertainment dollars against a host of
products and services in the highly competitive and rapidly evolving
audio entertainment marketplace. In addition to existing competition
from free "over-the-air" AM and FM radio as well as iPods and mobile
phone streaming, satellite radio will face new challenges from the rapid
growth of HD Radio, Internet radio and next generation wireless
technologies."We are excited for the many opportunities that an XM and SIRIUS combination will provide consumers," said Gary Parsons, Chairman of XM Satellite Radio and Hugh Panero, CEO of XM Satellite Radio, in a joint statement. "The combined company will be better positioned to compete effectively with the continually expanding array of entertainment alternatives that consumers have embraced since the Federal Communications Commission (FCC) first granted our satellite radio licenses a decade ago."

"This combination is the next logical step in the evolution of audio entertainment," said Mel Karmazin, CEO of SIRIUS Satellite Radio. "Together, our best-in-class management team and programming content will create unprecedented choice for consumers, while creating long-term value for shareholders of both companies. The combined company will be positioned to capitalize on SIRIUS and XM's complementary distribution and licensing agreements to enhance availability of satellite radios, offer expanded content to subscribers, drive increased advertising revenue and reduce expenses. Each of our companies has a strong commitment to providing listeners the broadest range of music, news, sports and entertainment and the best customer service possible. We look forward to sharing the benefits of the exciting new growth opportunities this combination will provide with all of our stakeholders."

The transaction is subject to approval by both companies' shareholders, the satisfaction of customary closing conditions and regulatory review and approvals, including antitrust agencies and the FCC. Pending regulatory approval, the companies expect the transaction to be completed by the end of 2007.

SIRIUS's financial advisor on the transaction is Morgan Stanley and Simpson Thacher & Bartlett LLP and Wiley Rein LLP are acting as legal counsel. XM's financial advisor on the transaction is J.P. Morgan Securities Inc. and Skadden Arps, Slate, Meagher & Flom LLP; Jones Day; and Latham & Watkins LLP are acting as legal counsel.

Conference Call and Webcast Information

The companies will hold a joint conference call and webcast on Tuesday, February 20, 2007 at 8:30 AM ET to discuss this announcement. The conference call can be monitored by dialing 800-573-4840 within the U.S. and 617-224-4326 for all other locations, passcode 29490052. The webcast can be accessed at http://www.sirius.com/ and http://www.xmradio.com/ as well as on their satellite radio services by tuning to SIRIUS channel 122 and XM channel 200. The webcast will be archived at http://www.sirius.com/ and http://www.xmradio.com/.

About SIRIUS

SIRIUS, "The Best Radio on Radio," delivers more than 130 channels of the best programming in all of radio. SIRIUS is the original and only home of 100% commercial free music channels in satellite radio, offering 69 music channels. SIRIUS also delivers 65 channels of sports, news, talk, entertainment, traffic, weather and data. SIRIUS is the Official Satellite Radio Partner of the NFL, NASCAR, NBA and NHL, and broadcasts live play-by-play games of the NFL, NBA and NHL, as well as live NASCAR races. All SIRIUS programming is available for a monthly subscription fee of only $12.95.

SIRIUS Internet Radio (SIR) is a CD-quality, Internet-only version of the SIRIUS radio service, without the use of a radio, for the monthly subscription fee of $12.95. SIR delivers more than 75 channels of talk, entertainment, sports, and 100% commercial free music.

SIRIUS products for the car, truck, home, RV and boat are available in more than 25,000 retail locations, including Best Buy, Circuit City, Crutchfield, Costco, Target, Wal-Mart, Sam's Club, RadioShack and at http://shop.sirius.com/.

SIRIUS radios are offered in vehicles from Audi, Bentley, BMW, Chrysler, Dodge, Ford, Infiniti, Jaguar, Jeep®, Land Rover, Lexus, Lincoln, Mercury, Maybach, Mazda, Mercedes-Benz, MINI, Mitsubishi, Nissan, Rolls Royce, Scion, Toyota, Volkswagen, and Volvo. Hertz also offers SIRIUS in its rental cars at major locations around the country.

Click on http://www.sirius.com/ to listen to SIRIUS live, or to purchase a SIRIUS radio and subscription.

About XM

XM (NASDAQ: XMSR) is America's number one satellite radio company with more than 7.6 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City, Chicago, the Country Music Hall of Fame in Nashville, Toronto and Montreal, XM's 2007 lineup includes more than 170 digital channels of choice from coast to coast: commercial-free music, premier sports, news, talk radio, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Hyundai, Nissan, Porsche, Subaru, Suzuki and Toyota is available in 140 different vehicle models for 2007. XM's industry-leading products are available at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com/.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., including potential synergies and cost savings and the timing thereof, future financial and operating results, the combined company's plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "should," "may," or words of similar meaning. Such forward- looking statements are based upon the current beliefs and expectations of SIRIUS' and XM's management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond the control of SIRIUS and XM. Actual results may differ materially from the results anticipated in these forward-looking statements.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statement: general business and economic conditions; the performance of financial markets and interest rates; the ability to obtain governmental approvals of the transaction on a timely basis; the failure of SIRIUS and XM shareholders to approve the transaction; the failure to realize synergies and cost-savings from the transaction or delay in realization thereof; the businesses of SIRIUS and XM may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; and operating costs and business disruption following the merger, including adverse effects on employee retention and on our business relationships with third parties, including manufacturers of radios, retailers, automakers and programming providers. Additional factors that could cause SIRIUS' and XM's results to differ materially from those described in the forward-looking statements can be found in SIRIUS' and XM's Annual Reports on Form 10-K for the year ended December 31, 2005, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006 which are filed with the Securities and Exchange Commission (the "SEC") and available at the SEC's Internet site (http://www.sec.gov/). The information set forth herein speaks only as of the date hereof, and Sirius and XM disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this press release.

Important Additional Information Will be Filed with the SEC

This communication is being made in respect of the proposed business combination involving SIRIUS and XM. In connection with the proposed transaction, SIRIUS plans to file with the SEC a Registration Statement on Form S-4 containing a Joint Proxy Statement/Prospectus and each of SIRIUS and XM plan to file with the SEC other documents regarding the proposed transaction. The definitive Joint Proxy Statement/Prospectus will be mailed to stockholders of SIRIUS and XM. INVESTORS AND SECURITY HOLDERS OF SIRIUS AND XM ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Investors and security holders will be able to obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC by SIRIUS and XM through the web site maintained by the SEC at http://www.sec.gov/. Free copies of the Registration Statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC can also be obtained by directing a request to Sirius Satellite Radio Inc., 1221 Avenue of the Americas, New York, NY 10020, Attention: Investor Relations or by directing a request to XM Satellite Radio Holdings Inc., 1500 Eckington Place, NE Washington, DC 20002, Attention: Investor Relations.

SIRIUS, XM and their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding SIRIUS' directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2005, which was filed with the SEC on March 13, 2006, and its proxy statement for its 2006 annual meeting of stockholders, which was filed with the SEC on April 21, 2006, and information regarding XM's directors and executive officers is available in XM's Annual Report on Form 10-K, for the year ended December 31, 2005, which was filed with the SEC on March 3, 2006 and its proxy statement for its 2006 annual meeting of shareholders, which was filed with the SEC on April 25, 2006. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Joint Proxy Statement/Prospectus and other relevant materials to be filed with the SEC when they become available.

Contacts

[Ksyrup]

The "a la carte" offering could be worrisome, since critics have called out cable/satellite TV companies for suggesting the same thing. If we can't get the same number/variety of channels "a la carte" as we can now, then we are going to get screwed. I bet they offer a basic plan that includes most of the music and talk/news stations, but then we'll have to pay extra for the MLB/NFL/NHL/Stern/A&O, etc., channels. So even if you want to duplicate what you currently have, it will cost more. That's my guess.

[rkmsuf]

Originally Posted by Ksyrup

The "a la carte" offering could be worrisome, since critics have called out cable/satellite TV companies for suggesting the same thing. If we can't get the same number/variety of channels "a la carte" as we can now, then we are going to get screwed. I bet they offer a basic plan that includes most of the music and talk/news stations, but then we'll have to pay extra for the MLB/NFL/NHL/Stern/A&O, etc., channels. So even if you want to duplicate what you currently have, it will cost more. That's my guess.

Yeah, I don't like this.

[panerd]

Originally Posted by Ksyrup

The "a la carte" offering could be worrisome, since critics have called out cable/satellite TV companies for suggesting the same thing. If we can't get the same number/variety of channels "a la carte" as we can now, then we are going to get screwed. I bet they offer a basic plan that includes most of the music and talk/news stations, but then we'll have to pay extra for the MLB/NFL/NHL/Stern/A&O, etc., channels. So even if you want to duplicate what you currently have, it will cost more. That's my guess.

I would be very cool with this idea. I think I may be one of the few satellite radio subscribers who listens to 100% music. My only motivation for getting Sirius was how shitty St. Louis (insert any city is my guess) radio had gotten and the MP3 solution had nowhere near the variety XM and Sirius offer. I could care less about NFL (I get Sunday Ticket and watch the games), Stern, MLB, playoby, Maxim, etc. However if my music package ends up being the price I am currently paying for everything right now than I will be a little annoyed.

[FBPro]

I'm quite curious how this is going to play out, practically my whole family has Sirius.....

[stevew]

Originally Posted by Ksyrup

The "a la carte" offering could be worrisome, since critics have called out cable/satellite TV companies for suggesting the same thing. If we can't get the same number/variety of channels "a la carte" as we can now, then we are going to get screwed. I bet they offer a basic plan that includes most of the music and talk/news stations, but then we'll have to pay extra for the MLB/NFL/NHL/Stern/A&O, etc., channels. So even if you want to duplicate what you currently have, it will cost more. That's my guess.

yeah, that troubled me a lot too.

[jaygr]

I used to want this (without giving it much thought) only because I wanted Sirius to get the punk channel that XM has (which they are getting one in April anyway now so it doesn't matter). But now that it is real and right in front of me, I don't like this one bit. I don't see how it is really going to be much of a good thing for us consumers because you know somehow we are going to have to end up paying more to at least get the same content we get now. I really enjoy Stern and the NFL channel (they are probably my most listened to) and the thought of having to add them like I would a movie channel on cable really pisses me off. I just don't know yet how this could end well.

edit: I wanted to add that I am not trying to jump to conclusions or anything because there are so little facts out right now. I think that like I said, now that sirius is getting a punk channel, XM has nothing that I want. I only really follow the NFL, I don't like O & A, no to Oprah, and most things already have an equivalent on Sirius. So I guess, for myself at least, I don't currently see any benefits.

[Ksyrup]

I wonder how well this will work, if true. I mean, XM tried to offer pay channels (A&O and Playboy), but it flopped and they changed to free (well, A&O anyway). So, they already know that this model likely won't work, unless they're banking on people wanting sports and Stern so badly they're willing to pay for it.

I'm also hoping the rumors about the need to upgrade receivers is just that. I have a built-in receiver in my car and will be damned if I am going to buy a new unit that I have to stick on my dash.

[Flasch186]

WOOHOO I hung onto my sirius stock!!!! Cant wait for tomorrow!!!

huh?

What does this mean for my Sirius shares?

Under the terms of the agreement, XM shareholders will receive a fixed exchange ratio of 4.6 shares of SIRIUS common stock for each share of XM they own. XM and SIRIUS shareholders will each own approximately 50 percent of the combined company.

and

That would value XM shares at $17.02 each, based on Friday's closing prices, representing a premium of 22 percent from XM's closing value of $13.98 Friday. Markets were closed Monday for the Presidents' Day holiday.

[molson]

Originally Posted by panerd

However if my music package ends up being the price I am currently paying for everything right now than I will be a little annoyed.

You'll be even more annoyed if the merged company uses the new XM model of commercials on most of their music channels.

[Eaglesfan27]

As long as I can use my current receiver, I'm fine with this deal. If not, I will be very annoyed. The "a la carte" aspect is only mildly concerning to me at this point.

[Jas_lov]

Originally Posted by jaygr

I used to want this (without giving it much thought) only because I wanted Sirius to get the punk channel that XM has (which they are getting one in April anyway now so it doesn't matter). But now that it is real and right in front of me, I don't like this one bit. I don't see how it is really going to be much of a good thing for us consumers because you know somehow we are going to have to end up paying more to at least get the same content we get now. I really enjoy Stern and the NFL channel (they are probably my most listened to) and the thought of having to add them like I would a movie channel on cable really pisses me off. I just don't know yet how this could end well.

My thought exactly, except I have XM basically for MLB coverage. I always wanted the NFL too and thought it'd be cool if XM and Sirius merged together, but not if I have to pay more just to get MLB games. It'd be great if they let us keep whatever package we have now and have the rest be a premium package but that probably won't happen. I really hope they don't offer a basic package and then charge current XM subscribers more for MLB and current Sirius subscribers more for NFL. Add in the whole having to change receivers and this could be the worst thing for us.

[molson]

It looks like we'd be looking at least a year and half until this is all sorted out.

[Terps]

As long as I can keep my Roady XT receiver and add Howard Stern to my current XM service I don't care what happens.

[Toddzilla]

Originally Posted by molson

You'll be even more annoyed if the merged company uses the new XM model of commercials on most of their music channels.

WTF are you talking about? XM has more commercial-free music channels than Sirius does. XM also carries a few channels (3 or 4 tops) per their agreement with Clear Channel which have commercials on them. So while XM doesn't have 100% commercial-free music, they offer more commercial-free music than Sirius does.

[terpkristin]

I guess this could be cool.
I got XM originally because it had ESPNRadio and ACC Coverage. Since getting it I've fallen in love with BPM and the 2 explicit comedy channels, and I'd be lying if I said I didn't use the MLB. As long as I can keep these, I'm totally fine with the merger.

/tk

[CU Tiger]

Originally Posted by Toddzilla

WTF are you talking about? XM has more commercial-free music channels than Sirius does. XM also carries a few channels (3 or 4 tops) per their agreement with Clear Channel which have commercials on them. So while XM doesn't have 100% commercial-free music, they offer more commercial-free music than Sirius does.

I think he was refering to the XM channels, you know how they advrtise for each other 3 times per hour while new playlists are added.

When I had Sirius I never heard this.

I.E. your listening to a top 40 channel and they tell you about their country, or O&A or whatever channel

[molson]

Originally Posted by Toddzilla

WTF are you talking about? XM has more commercial-free music channels than Sirius does. XM also carries a few channels (3 or 4 tops) per their agreement with Clear Channel which have commercials on them. So while XM doesn't have 100% commercial-free music, they offer more commercial-free music than Sirius does.

I was mistaken. In which case, I have to wonder whether the revenue coming from commercial advertising on 3 or 4 stations (that presumably no one would listen to), is worth the bad press (even if exaggerated) of being less than 100% commercial free. After all, it's the people that don't have XM (potential customers) who are going to misunderstand this impact.

[Toddzilla]

Originally Posted by molson

It's really weird to think of Howard Stern promoting "XM radio", if that's indeed the trade name that emerges. I wonder if he has anything in his contract what Sirius agrees to in that regard.

Not *that* strange...he's done it before...

hxxp://afro202.com/archives/XM-Foundry/04132005_howie_endorses_xm.mp3

[Toddzilla]

Wait a second....

Hasn't Dish Network and DirecTV already tried this? I think the SEC was VERY clear on those merger implications before they shot it down. I don't really see how this is much different.

Also, I think the FCC has quite a bit of pull within the SEC - basically dictating to them how to handle the terrestrial radio mergers on the 90s - and they are going to be dead-set against any XM/Sirius merger, so I'm not convinced this is going to happen any time soon.

[Logan]

Originally Posted by Toddzilla

Wait a second....

Hasn't Dish Network and DirecTV already tried this? I think the SEC was VERY clear on those merger implications before they shot it down. I don't really see how this is much different.

Also, I think the FCC has quite a bit of pull within the SEC - basically dictating to them how to handle the terrestrial radio mergers on the 90s - and they are going to be dead-set against any XM/Sirius merger, so I'm not convinced this is going to happen any time soon.

I think the best reasoning for why this will go through is...these companies will eventually die if it doesn't happen. There's way too much money being lost for the format to survive the way it's constructed now.

[JonInMiddleGA]

Originally Posted by molson

In which case, I have to wonder whether the revenue coming from commercial advertising on 3 or 4 stations (that presumably no one would listen to), is worth the bad press (even if exaggerated) of being less than 100% commercial free.

In fairness to XM, they aren't carrying the ads for the revenue they generate, they're carrying the ads because they are contractually obligated to Clear Channel to do so. Part of the deal that saw CC invest in XM included them (CC) providing programming for several channels & in return CC had the right to sell commercial time on those channels.

XM needed the money from CC, while CC was hedging their bet on the future of broadcast ever so slightly by investing and getting a chance to experiment with the medium a little bit. By all accounts I hear, both sides will be happy enough to see their contractual agreement come to an end, as the negative press wasn't something XM wanted & CC never really managed to generate any significant revenue from their channels

(Wanna advertise? You can for as little as $30 a spot & about as many spots as you want. To put that in perspective, $30 is less than it costs to run a spot 7p-12a on the Modern Rock station Huntsville, Alabma)