Sirius Buys XM Satellite Radio for $4.6 Billion

[Audioholics]

<A href="http://www.audioholics.com/news/editorials/sirius-buys-xm-satellite-radio.php"><IMG style="WIDTH: 125px; HEIGHT: 37px" alt=[sirius2] hspace=10 src="http://www.audioholics.com/news/thumbs/sirius2_th.gif" align=left border=0></A>Yes, you heard that right - it's not reversed. Sirius Satellite Radio has agreed to buy out rival XM Radio in a $4.6 billion dollar stock deal. This is the equivalent of Apple buying out Microsoft... OK, maybe just all their secretaries, but you get the idea. The arrangement would mean that all subscribers of both services would now be able to access such hot ticket satellite radio stars as Oprah Winfrey and Howard Stern. I for one am holding out for Brittany Spears to open a show about hair care products.

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[Matt34]

Maybe with Sirius at the helm they will send me my lost password email since that seems to be too much to ask from XM.

I just renewed my annual subscription for both the wife's and my cars, wonder how soon we can expect changes?

 

[westcott]

Who really cares at Audioholics if you can not even get CD quality sound?

Just a waste of bandwidth.

I suggest they cut their station offerings to 15 or 20 CD quality stations or offer 4 or 5 to at least pacify some of us with something better than a HTIB speaker system.

 

[JonBaker99]

You know they aren't going to cut their stations back, if anything they are going to expand because most customers don't really care about cd quality sound. They want a wide variety of music to listen to in a less than optimal listening environment. I'm kind of excited about the merger. I've been a long time XM subscriber but I have seriously considered switching to serious because of thier music channel selection.

 

[Matt34]

Living in southern Arizona we have very few radio stations(actually only one that comes in decent), unless you're fluent in Spanish. Both the wife and I spend almost an hour commuting back and forth to work each day so satellite radio is a great feature in that aspect.

 

[Matt34]

Just got this....

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 Panero
CEO, XM Satellite Radio

 

[j_garcia]

Wow, that went from rumor to reality in short time.

 

[amanchester]

Here is the letter I received from ole Mel.....

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

 

[stratman]

Will receivers now in operation work when they merge?

 

[Matt34]

Will receivers now in operation work when they merge?

I don't see how they could realistically get 12 million people to buy new equipment. I know sirius and xm antennas are already interchangeable, so I doubt they will force an upgrade. If they do, it damn well better be free.

I hope they offer a a la carte type service with this merger.

 

[stratman]

I hope you're right. My fear is one company, "you want satellite radio, buy the new one." Since there's no competition it can be a mess.

 

[timetohunt]

Most people could care less about the sound quality. But the product itself is absolutely perfect for some people. My friend is a truck driver, and as you can imagine, sat radio is a godsend. No more fiddling for channels every 30 miles. Also Sirius has traffic and weather for most metro areas 24x7. Plus my wife loves it, she works in manufacturing, which can be boring, so the comedy channels and all of the music choices keeps her going.
Frankly - I rarely listen though except for the NFL station which is excellent. Its mostly for my wife.

I had a question though? Since we are subscribers to Sirius, I wonder if my XM ready home receiver might be able to get the Sirius channels sometime soon. I never bought the receiver cause of the XM radio, it just happened to come with it.