Sirius and XM, the two largest satellite radio companies in the US, completed their merger in July 2008 after overcoming regulatory concerns. The new company, Sirius XM Radio, has over 18.5 million subscribers, making it the second largest radio company in the US. The merger was approved by the FCC and is expected to lead to cost savings and profits through synergies. Critics argue it could reduce competition for talent. The new company offers over 300 channels of programming.

1. Satellite Radio The Sirius/XM Merger

2. How It All Went Down Sirius, XM merger completed, creating US satellite radio giant (AFP) – Jul 29, 2008 WASHINGTON (AFP) — US satellite radio giants Sirius and XM completed their merger Tuesday after winning a lengthy battle with regulators over concerns about market competition. The new company formed by Sirius Satellite Radio's buyout of XM Satellite Radio, will be called Sirius XM Radio Inc. The combined company has more than 18.5 million subscribers, making it the second-largest radio company, based upon revenue, in the country. But the company has "significant" growth prospects because it currently has cornered less than 10 percent of the home and car market, it said. "We have worked diligently to close this transaction and we look forward to integrating our best-in-class management teams and operations so we can begin delivering on our promise of more choices and lower prices for subscribers," chief executive Mel Karmazin said in a statement. The Federal Communications Commission approved in a 3-2 vote Friday all-stock buyout of XM, ending some 16 months of regulatory limbo for the nation's only satellite radio companies. Company executives have long argued that the merger would lead to major cost savings and the first-ever profits in the fledgling industry. Some critics of the deal had argued that a combined satellite group would form a monopoly that would benefit from sharing the same broadcast stars and could bring an end to bidding wars for top talent. The deal was approved by XM and Sirius shareholders last December, when Sirius had more than 8.3 million subscribers compared with nine million for XM. The new company broadcasts more than 300 channels of programming, including exclusive radio broadcasts from shock-jock Howard Stern, television magnate Oprah and home-decorating guru Martha Stewart. The FCC approval marked the final regulatory hurdle needed for the merger, which passed antitrust scrutiny by the Justice Department in March. When the companies first began publicly discussing the merger, in February 2007, the deal was valued at 13 billion dollars.

3. What’s next? WHEN does a merger mean more choice for consumers? When it's a satellite radio merger -- at least according to XM and Sirius, which have been trying to complete their merger plans for more than a year. Now, indications are that the deal may be consummated this summer. The final stumbling block has been securing approval by the Federal Communications Commission. But last week two developments appeared to push it toward a conclusion. First, the companies filed a letter with the F.C.C. outlining voluntary commitments the operators would agree to should the merger be approved. Then the F.C.C. chairman, Kevin J. Martin, issued a statement that the conditions outlined by the companies would, in his opinion, satisfy the requirement of being in the public interest. And he would put his support behind the merger. Central to the promised post-merger offerings is a $14.99 monthly subscription plan that would allow customers to choose a combination of up to 100 channels selected from programming offered by XM and Sirius. So XM listeners could get Howard Stern or Hair Nation from Sirius, and Sirius subscribers could grab exclusive XM programs like ''Theme Time Radio Hour,'' hosted by Bob Dylan. There are already several car radios that can work with either XM or Sirius tuners. When I asked Ted Cardenas, the director of product planning for Pioneer Electronics, about using a Pioneer head unit to receive XM and Sirius broadcasts, he said it was possible to do that today. However, two tuners and two antennas usually have to be installed in the car. And, of course, without the merger, customers would have to subscribe separately to each service; $12.95 a month for Sirius and another $12.95 a month for XM. JOHN R. QUAIN