Monday, February 19, 2007
XM Gets Sirius: A merger of "equals"... two companies that, equally, have lost a lot of money. I know a lot of good people who work at both companies and you know that if this goes through, layoffs of equals will ensue. Bottom line: Satellite has a long way to go to get close to FM/AM radio in terms of reach, influence and most importantly, profits.
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Right on the money, Joel. Both satellite companies have been bleeding money since they launched. I don't know what's worse: letting them merge, or keeping them from merging and having one of them go out of business anyway. The end result would be the same: one satellite radio company.
The problem, as I see it, is, they overpaid for content, and there aren't enough Howard Stern listeners at $12.95 a month to help them make their money back.
The FCC denied DirecTV and Dish Network their merger a few years back, and they both seem to have turned out OK.
Good read, Joel. Thanks,
Buzz @ KIIM
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