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February 19, 2007

Sirius and XM Satellite to Merge

That assumes the government will let them.  The precedent for DirecTV and Dish Network having a merger rejected by the Justice Department looms large.  There was concern at the time that there would be only one satellite television provider even though that delivery method competed with cable and the nascent telco offerings.  The only difference from television compared to radio offerings is that there were more than two satellite companies around.  PrimeStar was purchase by DirecTV years before the proposed DirecTV-Dish Network merger.

The radio side may be a bit more complicated as there are only two, with no immediate prospect for any additional competition.  Is it better to have two weak providers or one strong provider?  What is the market definition?  Is it just radio satellite or is it satellite including terrestrial stations?  The Justice Department will weigh in on this one soon enough.

The story is in the Washington Post.

February 19, 2007 | Permalink

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