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The Merger Effect: What a Combined XM and SIRIUS Satellite Radio Means to You

Dateline: 07/26/08

By Corey Deitz, About.com

I recently contacted SIRIUS Satellite Radio with some questions about how things would change for subscribers should the merger complete as expected. Unfortunately, a representative was not able to provide any further details. He wrote back:

"Don’t think can really help right now. We are not doing any press outreach. Only confirming what is already public."

I wasn't too surprised that everyone's lip was zipped. I'm sure employees at both services have been holding their breath for a while while waiting for the F.C.C. approval - which finally came on Friday (7/25).

Well, after revisiting what is public I thought I would fit a square peg in a round hole by posing those same questions here and trying to answer them with what SIRIUS has already stated throughout this process. If nothing else, it should give you an overall idea of where you and your subscription will stand after the merger.

Question 1: Any time frame on how quickly programming will be combined?

SIRIUS has told the F.C.C. "Within three months of the consummation of the pending merger, the first a la carte-capable radios will be introduced in the retail after-market and the combined company will commence offering a la carte programming."

Question 2: How will you deal with incompatible hardware? Will there be some sort of sale, incentive program, rebate, etc. to move people to universally acceptable radios?

According to siriusmerger.com: "We guarantee that no SIRIUS radio will become obsolete as a result of the merger. The two companies have millions of radios in the market, including many that are factory-installed in automobiles. After the merger, you will not need another radio to continue to receive the programming you now enjoy."

Question 3: How will you decide which overlapping programming stays and goes? Based on what criteria?

There's not much on that question yet. Siriusmerger.com simply states: "As more decisions are made regarding new subscription packages, the programming line up, and the additional benefits to SIRIUS fans, we will communicate to all our subscribers."

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