On February 19, 2007, it was announced that longtime competitors, Sirius Satellite Radio and XM Satellite Radio, would combine their services to create a single satellite radio network throughout the U.S. and Canada. The merger look good on paper-after all, a merger of the two largest companies in satellite radio would bring the new combined effort a total of 13 million subscribers. It was also announced that each company’s group of stockholders would retain 50% of the new joined company. Sirius’ Mel Karmazin continued to serve as CEO while Gary Parsons continued serving as XM chairman. The only real change to come about came mid-year, when Hugh Panero, the CEO of XM, stepped down in August.
What is the latest news on the merger? The merger is not yet finalized, as it is currently under review by the U.S. Department of Justice’s Antitrust Division, as well as the FCC. However, it seems that everything is done but the shouting. (After all, this is radio!) The merger was first announced to shareholders on February 19, 2007, and it was not entirely unpredicted, as many industry insiders felt the combining of forces was imminent. From the period of March 2007 and to the end of the year, many technical aspects of Sirius’ acquisition were handled, including the FCC’s giving public notice of application filing to the shareholder vote, conducted from late October to November. Over 96% of Sirius’ stockholders agreed to the acquisition, and now the pending approval is in the hands of the FCC, which is expected to make an announcement in the first quarter of 2008.
