XM-Sirius Merger Ploys

Business Week offers an interesting primer on techniques satellite radio sweeties XM and Sirius may have to use to win regulator approval for their proposed merger. Besides the now familiar argument that the competitive landscape includes everything capable of playing, transmitting or storing music in digital form, XM and Sirius may have to make some […]

Business Week offers an interesting primer on techniques satellite radio sweeties XM and Sirius may have to use to win regulator approval for their proposed merger.Xm_logo_11

Besides the now familiar argument that the competitive landscape includes everything capable of playing, transmitting or storing music in digital form, XM and Sirius may have to make some concessions, such as agreeing to give up traffic, weather and other localized content that tends to give terrestrial radio broadcasters the vapors everytime satelite radio gets involved.

The companies may also have to avail themselves of the embarrassing but potentially persuasive "failing companies doctrine." If two satellite radio companies can't survive financially, such an argument goes, consumers would be better served by one broadcaster than none. Given the state of both company's finances since inception, making the first part of argument stick should be a slam dunk.

New Conditions May Ease XM-Sirius Merger [Business Week]