firstadopter
01-26-2005, 07:45 AM
<img src="http://www.firstadopter.com/images/sirius.jpg" border="0" align="right">
The New York Post <a href="http://www.nypost.com/business/38810.htm">is reporting</a> Sirius and XM Radio are in merger talks and according to sources have already met. Executives however are concerned about anti-trust issues as the combined company would create a satellite radio monopoly. As both companies still are unprofitable, a merger would help with cost synergies, lower bidding for content like sports and future Howard Sterns, and pricing power on the consumer end.<br><br>
<em>But in the wake of Sirius' hiring of former Viacom President Mel Karmazin in November, the issue has gained renewed urgency, sources said. "Mel is a roll-up guy, a deal guy," said one source close to Karmazin. While many people in the media industry say it's inevitable the two companies will eventually merge, sources say a deal could be at least a year away. </em>
The New York Post <a href="http://www.nypost.com/business/38810.htm">is reporting</a> Sirius and XM Radio are in merger talks and according to sources have already met. Executives however are concerned about anti-trust issues as the combined company would create a satellite radio monopoly. As both companies still are unprofitable, a merger would help with cost synergies, lower bidding for content like sports and future Howard Sterns, and pricing power on the consumer end.<br><br>
<em>But in the wake of Sirius' hiring of former Viacom President Mel Karmazin in November, the issue has gained renewed urgency, sources said. "Mel is a roll-up guy, a deal guy," said one source close to Karmazin. While many people in the media industry say it's inevitable the two companies will eventually merge, sources say a deal could be at least a year away. </em>