The much hyped merger of Satellite radio providers XM and Sirius has stalled, and the deadline is looming. The original deal was struck on February 19, 2007 and the termination date is Saturday. Sirius is desperate for the merger but regulators have still not approved the plan. Sirius CEO Mel Karmazin said he expects the boards of both companies to meet to extend that deadline. The DOJ seems to be stuck on the question of whether the merger would result in a monopoly. The answer to most is no, given that most satellite radio usage happens in cars, where DVD players, iPods, and free radio are also options. Since February 20, 2007, Sirius shares have fallen 22% to $3.05, while XM shares have sunk 15% to $13.13.
The much hyped merger of Satellite radio providers XM and Sirius has stalled, and the deadline is looming. The original deal was struck on February 19, 2007 and the termination date is Saturday. Sirius is desperate for the merger but regulators have still not approved the plan. Sirius CEO Mel Karmazin said he expects the boards of both companies to meet to extend that deadline. The DOJ seems to be stuck on the question of whether the merger would result in a monopoly. The answer to most is no, given that most satellite radio usage happens in cars, where DVD players, iPods, and free radio are also options. Since February 20, 2007, Sirius shares have fallen 22% to $3.05, while XM shares have sunk 15% to $13.13.
Read [Reuters]
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