I would love it if this would happen. I’ve had XM for a little over two years, and it would be great if I could get NFL games. XM offers MLB games, and I can’t imagine going without all the other great music and sports it has.
The benefits of a merger have been promoted by the chief executive of Sirius, Mel Karmazin, for a number of months, and Sirius officials continue to say that a merger would be a good thing. XM has not commented on the possibility, and neither company has said whether they have actually discussed the issue.
“When you have two companies in the same industry, we have a similar cost structure. Clearly, a merger makes sense from an investor’s point of view to reduce costs, and to have a better return,” said David Frear, the chief financial officer for Sirius.
Both companies have continued to lose hundreds of millions of dollars because of marketing and other subscriber acquisition expenses. During the year, XM sharply lowered its expectations for 2006 subscriber levels, from January’s predicted end-of-year total of 9 million to a maximum of 7.9 million. (Sirius reduced its subscription projection by about 100,000.)
Nate Davis, XM’s president, said his company believed that the slower-than-expected growth rate was of its own making and not a result of any market indifference. “We did not stimulate the market with new products,” he said.
XM’s most talked-about receivers, the Pioneer Inno and Samsung Helix, were first announced one year ago. Several new receiver models will be introduced later in 2007. In addition, production of some receivers was temporarily halted to stop a condition that was allowing satellite signals to be picked up by neighboring vehicles.
The hiccups typical of fledgling industries appear to be over. Both companies have their programming lineups largely in place and a wide range of receivers available in retail stores.
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