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Rumor: Future XM & Sirius merger?

sperry

Silent Avalanche RIP
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Satellite Radio Merger in 2007?

From SkyReport.com 1-12-07

Some think the merger of Sirius Satellite Radio and its rival XM will never garner enough support in Washington to allow a lone satellite radio company. Others say considering the entire landscape of digital music, a merger between the two yet-to-be profitable companies makes perfect sense and it could happen as soon as this fall.

Citigroup analyst Eileen Furukawa this week raised her 12-month price target on XM by $5 per share telling clients at an investor conference that she sensed an increased openness on the company's consideration of such a merger. On hand at the event: XM Chairman Gary Parsons and CFO Joe Euteneuer.

While it is true that the combination of the two satellite radio players would face some hurdles, Furukawa believes if the companies worked to resolve differences on how they count subscribers and pricing concerns, the deal could be beneficial for both sides. The companies could accomplish a great deal of cost-cutting by joining forces in areas like programming, marketing and satellite business, she said.

The analyst said XM believes if the Justice Dept. were considering the threat of competitive disruptions related to a possible merger, it would take a broad view of the competitive landscape - one including terrestrial radio, iPods and MP3 players, HD radio and internet radio. The regulatory wildcard, so to speak, remains with the FCC, Furukawa said.

She also said both XM and Sirius would have to reconcile several matters. For example, XM would probably demand a substantial premium if it were to be acquired by Sirius. Also, the two companies have different ways of separating line items on their financials. Furukawa maintained her "buy" rating on XM's stock and raised her price target to $21 from $16.

-----------

So, what do you think of this?

Dish Network & DirecTV are still trying to work out their venture to merge even after that failed prior.

What chance do you think XM & Sirius have? ???
 
I read a article about that and the title sounded like it would happen but when i read the article it was kinda talking you out of the idea...

i say screw it...in a few years sirius will be #1 and xm will fold

why merge???

also dish and direct offer the same programeing besides some sport options....

the radio's have completely different options......

I LOVE MY SIRIUS :)

Howard and bubba and classic v  and some country is all i need
Oh yeah..NBA Radio too

Full court press is awesome!!!
 
Satellite Radio Merger Talk Spurs Advocacy Group

From SkyReport.com 1-16-07

Despite recent upticks in the satellite radio sector, problems with the FCC and sluggish 4Q retail sales have created even more uncertainty about the service's future. But now that rumors are circulating that a merger between XM and Sirius Satellite Radio could turn things around for both companies, a group of law students has formed an organization aimed at keeping the companies apart.

Students at George Washington University recently created the Consumer Coalition for Competition in Satellite Radio (C3SR) - a consumer advocacy group dedicated to ensuring there is fair competition in the digital satellite radio industry. Created in response to the rumors of a potential merger between XM and Sirius, the student-run organization said its mission is to protect the 13 million current satellite radio subscribers from potential negative impacts.

With analysts projecting that the companies will have a combined 19 million subs by the end of the year, C3SR said it is the only consumer advocacy group solely dedicated to ensuring the interests of the industry's growing number of customers. Without consumer advocacy, the group contends, a merger would drastically threaten the status quo for XM and Sirius subscribers.

"The competitive duopoly in satellite digital radio created by the FCC in 1997 is clearly at risk," said Chris Reale, one of C3SR's founding members. "If the only two companies operating in the satellite radio industry are permitted to combine, consumers not only will lose their choice, but they will be totally at the mercy of a monopoly provider."

Although the group's objective is to keep XM and Sirius separate, and industry press has been fueling the flames of a possible merger, not everyone thinks that combining the country's satellite radio companies is just a matter of time. Oppenheimer analyst Thomas Eagan - despite maintaining a "buy" rating on both stocks - said that the merger speculation is overdone and cautioned investors to wait for a pullback before acting too soon.

"We do not expect that XM management's appetite (or lack thereof) for a merger has increased in recent months," Eagan said. "It is likely, however, that Sirius management's consistent discussion of the benefits of a merger may provoke XM to at least look at merger economics."

Still, Eagan said he believes Washington regulators would consider the union as FCC Chair Kevin Martin has said the deal somewhat resembles EchoStar's merger attempt with DIRECTV years ago. Although a that deal failed, Martin has said that any merger application would stand on its own merits.

"Approval of a satellite radio merger is more feasible than a satellite TV merger (because the former) is more easily broadened to include terrestrial radio and iPod use (thereby) reducing concerns that the merger would be anti-competitive," Eagan wrote.

Said Reale, "There I was studying antitrust concerns while executives from Sirius and XM - operating in an industry with no other competitors - were chatting away on the merits of a merger." If the potential deal were to receive approval, the law student said, "some of my favorite channels may disappear and/or the subscriptions fees will go up."

C3SR said it will make its debut this week at the National Conference on Media Reform in Memphis, TN with plans to raise consumer awareness about the potential negative impacts of a merger.
 
Travis_z34 said:
I read a article about that and the title sounded like it would happen but when i read the article it was kinda talking you out of the idea...

i say screw it...in a few years sirius will be #1 and xm will fold

why merge???

also dish and direct offer the same programeing besides some sport options....

the radio's have completely different options......

I LOVE MY SIRIUS :)

Howard and bubba and classic v? and some country is all i need
Oh yeah..NBA Radio too

Full court press is awesome!!!

I have XM and miss bubba  Wonder if he will change now that he got married this weekend?
 
It's on!!!!!!!!!!  Just received this email as an XM subscriber:


"February 20, 2007  Dear XM Radio Subscriber: We want to share with you some exciting news:  Yesterday, in Washington DC, we announced XM Radio will be merging with Sirius Satellite Radio to form the premier digital audio service.  The merger will create a satellite radio company that will provide consumers across the country with more and better premium radio programming. The combined company will be able to compete better in what has become a very complex and dynamic entertainment market.  Where today our exclusive contracts mean you had to choose between baseball and football or Oprah and Martha Stewart, the new company will seek to ensure that in the future, you will be able to access both companies' programming.  And, once we are fully integrated, those of you who have factory-installed satellite radio will no longer be limited to the programming provided by the exclusive satellite radio service chosen by their car manufacturer.  This merger should be completed in late 2007 or early in 2008.  Throughout the year, we will provide updates on how the merger is progressing and information will be available at our website, www.xmradio.com.  Between today and the merger date, as well as during the period immediately after the merger date, all of your services will remain the same.  The channel lineup, the customer service number, the great music technology, and the XM Radio web site will all remain unchanged and there will be no disruption to service.  But, if you have questions, information will be available and maintained on our website, and you can contact our Listener Care team at 800-XMRADIO, with questions and concerns.  XM Radio continues to be committed to providing you the highest quality audio entertainment and customer service available today.  After the merger, our new company will be able to offer you the most exciting listening experience in radio. 

Sincerely, 
Hugh PaneroCEO, XM Satellite Radio"



Yndio
 
I got the letter from Sirius

February 19, 2007

To: SIRIUS Subscribers

Today is a very exciting day for SIRIUS customers.  As you may have
heard, SIRIUS Satellite Radio and XM Satellite Radio are merging to form
the nation's premier audio entertainment provider. 

This combination of our two offerings will benefit you - our loyal
listeners.  As a single company, we'll provide superior programming to you
every day with the best of both SIRIUS and XM.  Currently, XM and
SIRIUS broadcast a wide range of commercial-free music channels, exclusive
sports coverage, news, talk, and entertainment programming.  Howard
Stern.  Oprah and Friends.  The NFL.  MLB.  NBA.  ESPN.  CNBC.  Fox News. 
Additionally, the combined company will be able to improve existing
services such as real-time traffic information and rear-seat video as well
as introduce new ones. 

After shareholder and regulatory approvals, we anticipate that the
combination will be finalized by the end of 2007. Until then, both
companies will continue to operate independently.  We will continue to provide
you with the uninterrupted service - as well as the outstanding
customer support - that you have come to expect and enjoy from SIRIUS. We do
not anticipate any changes in your service during the merger process,
however, please call our customer care team on 1- 888-539-7474 should you
have any questions.

We look forward to the many benefits this combination will offer and
continuing to make your listening experience an enjoyable one - offering
more of the Very Best Radio on Radio. 

Stay tuned,

Mel Karmazin, CEO






Forward Looking Statements
This letter 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 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.



Please note: this is not a promotional e-mail.  As a SIRIUS subscriber,
you will periodically receive service notices via e-mail.  These
service notices are intended to provide you with helpful information that
will facilitate and enhance your SIRIUS listening experience.

 
To all the Sirius or XM radio owners:

I just completed a conversation with XM radio. If you are looking to convert from one to the other, WAIT!!
The representative told me that after the merger (which should be completed by the end of this year) both XM and Sirius customers will receive programming from XM and Sirius alike. I don't know how the rates are going to be affected; however I have one of each in my vehicles and would like to have a discount on multiple radios without having to buy additional hardware.
Take Care to all
 
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