XM and Sirius Satellite Radio Giants Agree to Merger

The advancement of the new generation of radio took another step forward today as XM Satellite Radio and Sirius Satellite Radio, the two major brand names in subscription satellite radio agreed to a merger that would make them the largest satellite radio provider in the nation.

The deal is expected to draw heavy scrutiny from federal regulators as the dissolution of any competition in the open field of satellite radio would create one major power. Washington will surely be brought in soon to oversee the details, especially in light of a particular Federal Communications Commission Rule stating no Satellite radio provider shall purchase another. The respective companies expect for the rule to be waved however.

Anti-trust issues might also be brought to the fore by the Justice Department might also derail the attempted merger, though a spokesman for XM Satellite Radio states that the companies compete not only with each other but with Ipods, digital music, and traditional radio. Both companies have seen a significant drop in market value in the last year, as much as 40 percent in light of analyst concerns over subscription bases and any possibility for growth.

The new company has yet to be named, though they have released a statement that both halves will take an equal share of the new Satellite Radio giant. Sirius Satellite Radio CEO Mel Karzimin will take the role as CEO of the new company. When Sirius brought Karzimin on board more than two years ago, speculation increased that there could be a merger between the two. Those rumors have been repeatedly quashed for much of the last two years, though analysts have agreed that the possibility was inevitable.