Sirius XM Merger

Over a year and a half following the original merger announcement, Sirius and XM Satellite Radio completed their channel integration on November 12, 2008. XM users were introduced to 22 new channels, originally provided only to Sirius users, while Sirius introduced 11 new channels to their users. While the two companies remain independently ran, depending on a users choice of service, they now offer the same radio content and are both owned and operated by Sirius.

Fast Facts

1. Sirius and XM are the only satellite radio services available in the U.S.
2. Shares for both companies rose sharply after the Department of Justice approved merger in March 2008
3. Companies agreed to settle $19.7 million in outstanding FCC fines, in order to clear the deal¹
4. Combined operations will equal 17.3 million subscribers²
5. Mel Karmazin will retain position as the CEO

Criticism and Response

Critics across the political spectrum had criticized the proposed merger, saying that it could hinder commercial competition, grant fewer options to consumers and compromise the functionality of existing technology.³ Sirius has insisted, however, that all existing devices will work with any new services offered, and that better choices in programming will be available for less money.⁴

History

• February 19, 2007: XM Satellite Radio agrees to be purchased by Sirius Satellite Radio in a merger that would be worth over $4 billion.

• March 24, 2008: The U.S. Department of Justice approves the merger after concluding it would not significantly restrict competition and therefore would not harm consumers.⁵

• July 24, 2008, Sirius and XM agree to pay a combined $19.7 million for FCC violations accrued by both companies.¹

• July 25, 2008: The FCC, which had criticized the deal along with consumer groups and the terrestrial radio industry, approves the merger.

• November 12, 2008: Sirius and XM officially merge channels

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