Finally, A Sirius Merge for XM
by Chris Neiger
After 16 months of being held up in the regulatory process, Sirius and XM are finally close to their desired merger. 
Yesterday, the FCC Chairman Kevin Martin gave the O.K., and later this week we'll find out if the other commissioners will vote yes on the issue (only two more votes are needed for it to be official, which they'll likely get). If all goes well, the official merge will take place in about a month and will come over a year after the Justice Department's antitrust division said yes to the marriage.
Martin has asked for a few concessions from the companies, that many feel would good for the satellite business and for the consumer. Let's check out a few:
- Over 24 channels (or 8% of the programming) would have to be set aside for non-commercial and minority programming.
- There will be a three-year price freeze for customers.
- Optional packages will have to be set up so consumers can choose (to a certain degree) what channels they want and by doing so, help decide how much they're charged each month.
- XM and Sirius have to allow any hardware manufactures to make and sell satellite receivers; one of the biggest requirements.
The companies have agreed to these and other conditions, signaling that the two are in agreement with the FCC and want to keep moving forward with the process. And who can blame them? Analysts believe that the merge will save the companies billions of dollars by cutting costs. With news of the O.K. from Martin, stocks for Sirius rose by 3.15% and 3.96% for XM. Kevin Martin feels confident that the merger is "in the public interest" and if consumers are able to get cheaper satellite subscriptions, have the freedom to buy a receiver from whomever they want and lock in a price for three years, I'd have to agree.
A few years back when I graduated college, I almost purchased some Sirius stock. I didn't know (and still don't) much about investing at the time, but I ordered their company info online and sifted through all the stock reports and other information. I ended up using most of the graduation money to live off of while I was working as a (non-payed) magazine intern in Orlando. Occasionally I wonder how much I could have made off of that early investment, especially with this new merger and what it means for the companies, but I don't regret my decision for one moment. I will however be anxiously watching to see how this XM-Sirius deal pans out. If it all goes well, you better be sure I'll be investing on my next hunch.