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The Satellite Radio business is not even fully off the ground, and already the two Satellite Radio players, XM Radio and Siruis are discussing merger, reports the New York Post.. The two companies have talked in the past about merging, but the discussions never got to […]

The Satellite Radio business is not even fully off the ground, and already the two Satellite Radio players, XM Radio and Siruis are discussing merger, reports the New York Post..

The two companies have talked in the past about merging, but the discussions never got to an advanced stage. But in the wake of Sirius’ hiring of former Viacom President Mel Karmazin in November, the issue has gained renewed urgency, sources said.

It should not come as a surprise as both companies despite all the buzz (ala TiVo and Treo) are sucking wind, and losing money. Once together, they can stop spending marketing dollars bitch-slapping each other and instead focus on getting more customers away from terrestrial radio networks. Sirius which reported its quarterly results this morning, posted a loss of $712.2 million on revenues of $66.9 million. In 2005, the company expects an operating loss of $480 million on revenues of $210 million.

  1. XM and Sirius to Merge

    Om Malik notes that there’s much speculation about about the merging of Sirius and XM Radio … and no firm denials.

    That would be interesting. I’m not sure how I like having one monolithic satellite radio company, as I worry about lack of compet…

    COMMENT:
    AUTHOR: Jesse Kopelman

    This is why on-demand is the future. The natural trend for all broadcasters is monopoly as they are all fighting over exactly the same “main-stream” customers. The end result is disenfranchisement of everyone else and thus a market for on-demand. I think the overall on-demand market will end up being much larger than that for broadcast, but there is no potential for any giant companies in on-demand like there is in broadcast. That is a good thing, by the way.

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  2. Merger speculation in the satellite radio business

    Om Malik on the rumored merger between Sirius Satellite Radio and XM Satellite Radio: “It should not come as a surprise as both companies despite all the buzz (ala TiVo and Treo) are sucking wind, and losing money. Once together,…

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  3. [...] Malik notes that there’s much speculation about about the merging of Sirius and XM Radio … and no firm [...]

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