AdAge Suggests Sirius/XM Merger On Horizon

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Dugg (Red) DangleA new article published in the online edition of AdvertisingAge (AdAge) suggests Sirius and XM Radio may pair up to fight off new digital technologies. This entire issue concerning a Sirius/XM merger was escalated last week when Mel Karmazin told investors and venture capitalists at The Deals Convergence 2.0 conference that “wed love to buy” XM.

That one small blurb, which most people didnt take seriously, has begun a new round of rabid speculation that a merger between the satellite radio giants is inevitable. But not so quick, there are hurdles, not to mention what is probably the highest hurdle, the FCC.

AdAge says the satellite radio industry faces more competition than it may have anticipated. The competition, according to AdAge – Wi-Fi and premium-online-content.

The article certainly points out very good reasons for two companies to merge, but I can think of a thousand reasons for Chrysler and GM to merge. In fact, I can think of a thousand reasons for just about any company that faces competition to merge with a competitor. Together, Sirius and XM would be a force, but that would leave room for a new Sirius XM Merger?satellite radio company. What then, another merger? Merger talk between Sirius and XM has been a heated topic on stock chat rooms for more than a year. For those investors holding out for a satellite radio marriage, I have one suggestion – dont hold your breath.

Can you imagine living in a world where companies merged when a new competition entered the market? It just doesnt make sense. Merging isnt going to magically make the competition disappear. The only real counter to competition is to offer better, if not the best product available. Whats wrong with that idea? Nothing, because its the first thing an entrepreneur learns when entering the business world.

AdAge even listed the pros and cons for a Sirius/XM merger. To be honest, listing the pros and cons of a satellite radio merger isnt exactly challenging. But what the heck, lets take a look at the pros and cons, according to AdAge.

Pros and cons

Reasons to merge:

* Better efficiency in programming, contracts with auto makers

* Increased competition from internet radio and wireless streaming devices

* A much-needed boost to stock prices

Reasons not to:

* Regulatory hurdles

* Interoperability costs

* Company culture clashes

Well, that does it for me, Im off to the closest Burger King with a suggestion for the manager – consider a merger with McDonalds, they have better salads.

– Dugg (Red) Dangle – Sirius Fan Network