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Tuesday, February 20, 2007 |
Tech: Satellite Of Love: XM In Sirius Merger Talks
Sirius Satellite Radio announced plans to purchase competitor XM Radio, for $4.6 billion. Though there are some who say the companies could stand alone if they had to, the real question is why you would want to do that. Sanford C. Bernstein analyst Craig Moffett says the companies "will have to announce a fairly complicated technology-migration plan", which presumably they have yet to do. As it is, doubts about federal regulators allowing the merger have caused share prices of XM to fall 15% below the bid price indicated by Sirius. Apparently — and I'm not making this up — to get past regulatory concerns, they're going to try the argument that they aren't just about satellite radio.
Supposedly, this will be a good thing for customers and shareholders alike, as Sirius carries NFL but has no access to MLB, and XM has MLB but not NFL.
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