# So did Sirius buy XM or what?! **URL:** \ **Category:** Factual Questions\ **Created:** [February 20, 2007, 7:10pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997 "2007-02-20T19:10:22Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Meeko](https://avatars.discourse-cdn.com/v4/letter/m/e495f1/32.png) [@Meeko](https://boards.straightdope.com/u/Meeko)\ **Post date:** [February 20, 2007, 7:10pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/1 "2007-02-20T19:10:22Z")
The merger was announced yesterday, yet it seems like old news already. What I am trying to figure out, is who bought the other. I think we all know that ‘merger’ is a euphamism. Everything I can discern, points to Sirius buying XM. Yet XM was the better service (I thought) and had more subscribers / made more of a profit. Anyone have the SD on this? ---
**Author:** ![Joey\_P](https://avatars.discourse-cdn.com/v4/letter/j/919ad9/32.png) [@Joey\_P](https://boards.straightdope.com/u/Joey_P)\ **Post date:** [February 20, 2007, 7:13pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/2 "2007-02-20T19:13:16Z")
The only thing I’ve heard so far is that the president/CEO of Sirius will be the president/CEO of the new company and the chairman of XM will keep his position. All I really care about is how it will effect ME. Am I going to get in my car one day to find twice as many stations? ---
**Author:** ![Fat\_Chance](https://avatars.discourse-cdn.com/v4/letter/f/8baadc/32.png) [@Fat\_Chance](https://boards.straightdope.com/u/Fat_Chance)\ **Post date:** [February 20, 2007, 7:20pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/3 "2007-02-20T19:20:56Z")
[QUOTE=Meeko] The merger was announced yesterday, yet it seems like old news already. What I am trying to figure out, is who bought the other. I think we all know that ‘merger’ is a euphamism. Everything I can discern, points to Sirius buying XM. Yet XM was the better service (I thought) and had more subscribers / made more of a profit. Anyone have the SD on this? [/QUOTE] One thing - XM as slightly more subscribers, but both companies are very very very very UNprofitable. ---
**Author:** ![Si\_Amigo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/si_amigo/32/2877_2.png) [@Si\_Amigo](https://boards.straightdope.com/u/Si_Amigo)\ **Post date:** [February 20, 2007, 7:25pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/4 "2007-02-20T19:25:05Z")
Nope, not allowed to until the FCC rules that it will not be an illegal monopoly. Good luck, the FCC already ruled that the satilitte TV providers could not merge. XM and Sirius are taking the position that they compete agaisnt MP3 players and HD Radio, so that it would not be a monopoly. :dubious: Well, don’t the satilite TV people compete agaisnt cable and broadcast as well. :smack: It’s most likely that it is a last ditch effort on both of their parts to avoid going into bankruptcy. ---
**Author:** ![Joey\_P](https://avatars.discourse-cdn.com/v4/letter/j/919ad9/32.png) [@Joey\_P](https://boards.straightdope.com/u/Joey_P)\ **Post date:** [February 20, 2007, 7:26pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/5 "2007-02-20T19:26:44Z")
[http://xmradio.com/merger/index.xmc](http://xmradio.com/merger/index.xmc) Here’s a 21 page PDF I didn’t feel like reading [http://library.corporate-ir.net/library/69/696/69614/items/232081/FINAL%2002.20.07.pdf](http://library.corporate-ir.net/library/69/696/69614/items/232081/FINAL%2002.20.07.pdf) ---
**Author:** ![scr4](https://avatars.discourse-cdn.com/v4/letter/s/59ef9b/32.png) [@scr4](https://boards.straightdope.com/u/scr4)\ **Post date:** [February 20, 2007, 7:27pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/6 "2007-02-20T19:27:56Z")
[QUOTE=Si Amigo] It’s most likely that it is a last ditch effort on both of their parts to avoid going into bankruptcy. [/QUOTE] Would the FCC take this into account? I mean, if one of them went out of business, we’d still be left with a monopoly, right? ---
**Author:** ![Si\_Amigo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/si_amigo/32/2877_2.png) [@Si\_Amigo](https://boards.straightdope.com/u/Si_Amigo)\ **Post date:** [February 20, 2007, 8:13pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/7 "2007-02-20T20:13:39Z")
There are alot of automotive companies in bankruptcy right now, it doesn’t mean that you are out of business. So no, I doubt that the FCC would feel obligated to consider that. ---
**Author:** ![Tiamatpuppy](https://avatars.discourse-cdn.com/v4/letter/t/e5b9ba/32.png) [@Tiamatpuppy](https://boards.straightdope.com/u/Tiamatpuppy)\ **Post date:** [February 20, 2007, 9:56pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/8 "2007-02-20T21:56:20Z")
[QUOTE=Fat Chance] One thing - XM as slightly more subscribers, but both companies are very very very very UNprofitable. [/QUOTE] As are all startup companies with big initial capital expenditures. Both companies were targeted to at last have profits last quarter of 06. ---
**Author:** ![Acsenray](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/acsenray/32/4519_2.png) [@Acsenray](https://boards.straightdope.com/u/Acsenray)\ **Post date:** [February 20, 2007, 10:05pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/9 "2007-02-20T22:05:54Z")
[QUOTE=Meeko] I think we all know that ‘merger’ is a euphamism. [/QUOTE] How is “merger” a euph **e** mism? Sometimes one company is buying out the other. Sometimes a new, third, entity is created and the other two are merged into it. ---
**Author:** ![AskNott](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/asknott/32/5790_2.png) [@AskNott](https://boards.straightdope.com/u/AskNott)\ **Post date:** [February 20, 2007, 10:56pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/10 "2007-02-20T22:56:08Z")
Mergers are seldom happy marriages. At one time, it was safe to assume that the bigger company has swallowed up the smaller, and will now be in charge. In recent years, it is often the other way around; to avoid being eaten, the little company borrows carloads of money to buy a company twice its size. Thousands of headcount are cut. Behind all that wailing and gnashing of teeth, the big shots that lost in the game of rockpaperscissors are gently let down with a generous golden parachute. When Daimler-Benz merged with Chrysler, it was all smiles and happy talk. It would be “an equal partnership.” As we now know, the US bosses were booted out, and the Daimler guys run the show. Just recently, the news was that Daimler-Chrysler wants to sell Chrysler. A merger is seldom a pretty picture. ---
**Author:** ![badkittypriestess](https://avatars.discourse-cdn.com/v4/letter/b/8baadc/32.png) [@badkittypriestess](https://boards.straightdope.com/u/badkittypriestess)\ **Post date:** [February 20, 2007, 10:56pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/11 "2007-02-20T22:56:31Z")
To: SIRIUS Subscribers Today is a very exciting day for SIRIUS customers. As you may have heard, SIRIUS Satellite Radio and XM Satellite Radio are merging to form the nation’s premier audio entertainment provider. This combination of our two offerings will benefit you - our loyal listeners. As a single company, we’ll provide superior programming to you every day with the best of both SIRIUS and XM. Currently, XM and SIRIUS broadcast a wide range of commercial-free music channels, exclusive sports coverage, news, talk, and entertainment programming. Howard Stern. Oprah and Friends. The NFL. MLB. NBA. ESPN. CNBC. Fox News. Additionally, the combined company will be able to improve existing services such as real-time traffic information and rear-seat video as well as introduce new ones. After shareholder and regulatory approvals, we anticipate that the combination will be finalized by the end of 2007. Until then, both companies will continue to operate independently. We will continue to provide you with the uninterrupted service - as well as the outstanding customer support - that you have come to expect and enjoy from SIRIUS. We do not anticipate any changes in your service during the merger process. This is what I got in an e-mail since I have Sirius ---
**Author:** ![teela\_brown](https://avatars.discourse-cdn.com/v4/letter/t/d9b06d/32.png) [@teela\_brown](https://boards.straightdope.com/u/teela_brown)\ **Post date:** [February 20, 2007, 11:13pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/12 "2007-02-20T23:13:21Z")
Hmmph. I get Sirius, and I like it, and I also own a bit of Sirus stock. I wonder what will happen to that? Also, Sirius has been pulling the TV cable-company style of dumbing down the initial subject of its channels. First, it had a swing music channel, which I loved. Then it combined the swing channel with the standards channel - I was annoyed, but I could still catch some Benny Goodman and Duke Ellington in between the Ella Fitzgerald and Mel Torme. Now this combined channel is going to change again to become “Siriusly Sinatra” or some such horseshit. I _hate_ Sinatra! I wonder if the merger will re-expand the channel selection or just narrow it down further? Hmmph. ---
**Author:** ![Cerowyn](https://avatars.discourse-cdn.com/v4/letter/c/82dd89/32.png) [@Cerowyn](https://boards.straightdope.com/u/Cerowyn)\ **Post date:** [February 20, 2007, 11:42pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/13 "2007-02-20T23:42:29Z")
[QUOTE=Si Amigo] There are alot of automotive companies in bankruptcy right now, it doesn’t mean that you are out of business. [/QUOTE] Really? Which ones? I know a lot of automotive companies are bleeding red ink, but I don’t think any of them are in bankruptcy. With regard to “merger” being a euphemism for take-over, as others have noted that ain’t necessarily so. Sometimes it’s a way of placating shareholders of the acquisition target (such as the Coors takeover of Molson), but sometimes it really _is_ the merger of two equal companies forming a new entity. ---
**Author:** ![anson2995](https://avatars.discourse-cdn.com/v4/letter/a/c77e96/32.png) [@anson2995](https://boards.straightdope.com/u/anson2995)\ **Post date:** [February 21, 2007, 12:16am UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/14 "2007-02-21T00:16:51Z")
[QUOTE=Meeko] The merger was announced yesterday, yet it seems like old news already. [/QUOTE] Just to be clear, it’s only a proposal at this point, one that requires regulatory approval. That will take months. ---
**Author:** ![asterion](https://avatars.discourse-cdn.com/v4/letter/a/4da419/32.png) [@asterion](https://boards.straightdope.com/u/asterion)\ **Post date:** [February 21, 2007, 1:38am UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/15 "2007-02-21T01:38:04Z")
[QUOTE=badkittypriestess] To: SIRIUS Subscribers Today is a very exciting day for SIRIUS customers. As you may have heard, SIRIUS Satellite Radio and XM Satellite Radio are merging to form the nation’s premier audio entertainment provider. This combination of our two offerings will benefit you - our loyal listeners. As a single company, we’ll provide superior programming to you every day with the best of both SIRIUS and XM. Currently, XM and SIRIUS broadcast a wide range of commercial-free music channels, exclusive sports coverage, news, talk, and entertainment programming. Howard Stern. Oprah and Friends. The NFL. MLB. NBA. ESPN. CNBC. Fox News. Additionally, the combined company will be able to improve existing services such as real-time traffic information and rear-seat video as well as introduce new ones. After shareholder and regulatory approvals, we anticipate that the combination will be finalized by the end of 2007. Until then, both companies will continue to operate independently. We will continue to provide you with the uninterrupted service - as well as the outstanding customer support - that you have come to expect and enjoy from SIRIUS. We do not anticipate any changes in your service during the merger process. This is what I got in an e-mail since I have Sirius [/QUOTE] From a similar email I got today from XM: Dear XM Radio Subscriber: We want to share with you some exciting news: Yesterday, in Washington DC, we announced XM Radio will be merging with Sirius Satellite Radio to form the premier digital audio service. The merger will create a satellite radio company that will provide consumers across the country with more and better premium radio programming. The combined company will be able to compete better in what has become a very complex and dynamic entertainment market. Where today our exclusive contracts mean you had to choose between baseball and football or Oprah and Martha Stewart, the new company will seek to ensure that in the future, you will be able to access both companies’ programming. And, once we are fully integrated, those of you who have factory-installed satellite radio will no longer be limited to the programming provided by the exclusive satellite radio service chosen by their car manufacturer. This merger should be completed in late 2007 or early in 2008. Throughout the year, we will provide updates on how the merger is progressing and information will be available at our website, [www.xmradio.com](http://www.xmradio.com). Between today and the merger date, as well as during the period immediately after the merger date, all of your services will remain the same. The channel lineup, the customer service number, the great music technology, and the XM Radio web site will all remain unchanged and there will be no disruption to service. But, if you have questions, information will be available and maintained on our website, and you can contact our Listener Care team at 800-XMRADIO, with questions and concerns. XM Radio continues to be committed to providing you the highest quality audio entertainment and customer service available today. After the merger, our new company will be able to offer you the most exciting listening experience in radio. Amusingly, the disclaimer on the end of this email is longer than the actual email. ---
**Author:** ![Rick](https://avatars.discourse-cdn.com/v4/letter/r/9f8e36/32.png) [@Rick](https://boards.straightdope.com/u/Rick)\ **Post date:** [February 21, 2007, 1:45am UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/16 "2007-02-21T01:45:14Z")
[QUOTE=Cerowyn] Really? Which ones? I know a lot of automotive companies are bleeding red ink, but I don’t think any of them are in bankruptcy. [/QUOTE] ::: Cough::: Ford ::: Cough::: ---
**Author:** ![Si\_Amigo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/si_amigo/32/2877_2.png) [@Si\_Amigo](https://boards.straightdope.com/u/Si_Amigo)\ **Post date:** [February 21, 2007, 2:06am UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/17 "2007-02-21T02:06:03Z")
Just off the top of my head, Tower Automotive is in bankruptcy. I’ll post more in the morning. Ford is not in bankruptcy, yet. ---
**Author:** ![Si\_Amigo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/si_amigo/32/2877_2.png) [@Si\_Amigo](https://boards.straightdope.com/u/Si_Amigo)\ **Post date:** [February 21, 2007, 2:22am UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/18 "2007-02-21T02:22:46Z")
Collins & Aikman, Dana and Delphi are also in bankruptcy. Visteon will most likely end up there as well. These are major suppliers to the big 3 US name brands and the government is not giving them any special help. Don’t count on the FCC providing any help to XM or Sirius. ---
**Author:** ![Cerowyn](https://avatars.discourse-cdn.com/v4/letter/c/82dd89/32.png) [@Cerowyn](https://boards.straightdope.com/u/Cerowyn)\ **Post date:** [February 21, 2007, 6:07am UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/19 "2007-02-21T06:07:40Z")
[QUOTE=Si Amigo] Just off the top of my head, Tower Automotive is in bankruptcy. I’ll post more in the morning. Ford is not in bankruptcy, yet. [/QUOTE] Indeed, I was not considering automotive parts suppliers. ---
**Author:** ![Acsenray](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/acsenray/32/4519_2.png) [@Acsenray](https://boards.straightdope.com/u/Acsenray)\ **Post date:** [February 21, 2007, 12:53pm UTC](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997/20 "2007-02-21T12:53:00Z")
[QUOTE=Si Amigo] Nope, not allowed to until the FCC rules that it will not be an illegal monopoly. [/quote] The Federal Communications Commission does not have jurisdiction over the question of whether a combination might be an illegal monopoly. That’s the Federal Trade Commission. The F.C.C. will decide whether such a merger would violate the Communications Act of 1934 (as amended) or the commission’s own regulations, some of which limit the size of communications companies, but, and this is important, those regulations _are not_ based on the notion of illegal monopolies. [QUOTE=Si Amigo] There are alot of automotive companies in bankruptcy right now, it doesn’t mean that you are out of business. So no, I doubt that the FCC would feel obligated to consider that. [/QUOTE] I doubt very much that the state of the automotive industry will have any relevance to decision-making at the F.C.C. [Next page](https://boards.straightdope.com/t/so-did-sirius-buy-xm-or-what/392997.md?page=2)