This week, XM and Sirius, the two main satellite radio companies, agreed to merge. Considering there aren’t really any other radio satellite companies out there, this is a big deal. An editorial in the New York Times raises concerns over this merger. One important point that the editorial addresses is the young ages of these companies. If after only about six years these companies are already ready to get together and have a party, one has to wonder if they have thoroughly thought out this merger. Time is essential in this situation, but perhaps these companies are rushing a bit too much. When the government is deciding whether or not to permit this merger they too should look to time. The decision needs to be heavily weighed, especially considering this will have a lasting affect on satellite radio competition. This merger should have waited and the government should do the same.
XM and Sirius: Two Become One
Jonas Pelli @ Fri, 03/23/2007 - 11:08am
^^ True, Howard and O&A will be at each other's throats once again if they're under the same roof, wonder how they feel about it.
Cari Wolfert @ Fri, 03/23/2007 - 10:53am
I think a lot of pros and cons will come from the merger if it is approved. Customers will be able to get coverage of both the NFL and MLB (before it was split up between XM and Sirius and customers had to choose). Yet what inevitably will come from this merger is a sharp increase in the price of subscriptions, something that may discourage people from using satellite radio in general. It should be interesting to see what happens.