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Re: SIRI / XM Prepare Merger Announcement (Feb. 19(
A merger would result in a yearly savings of about $7B, some analysts figure, which immediately boosts profitability. Because you'd be able to share satellite space, a phase it would allow both signal types to carry the new unified programming.
Some changes that would be certain to happen:
* Code-Share enterprises would dissappear. A merger would basically call for an end agreements with terrestrial radio providers, so commercials would be gone, and there would be no more channels programmed to match ala XM now.
* Other Code-Share enterprises would be bought out. Mark it: CBS radio would immediately buy out O&A's contract and make them a terrestrial exclusive. Exposure to a much larger satellite base as well as the fact that a merged company would have a far more effective means to sell ads would almost require CBS to make the move to not share content with the new satellite company. I see lots of threads talking about Howard or O&A want this or that, forget all of it.. if there is a merger, CBS will be the one who pulls the strings and makes O&A go terrestrial just to protect their value to CBS.
* They would instantly be the largest marketplace for full-sports feeds. MLB, NFL, NASCAR, NHL, and many college sports would be unified under a single provider.
* Both have strong resources in combination satellite & terrestrial technology; unification of those helps compliment the strengths of each other and shore up weaknesses.
* If they were ever going to merge, pressure is now. The current FCC board has said they would greenlight it after originally saying they wouldn't. So they know they can get it done. There are no certainties that a future board appointed by an unknown future president will have such similar feelings. Figuring a 12-month to 15-month window for full FCC clearance, they would have to get this announced before the end of the month in order to guarantee completion before the 2008 election cycle begins in full (Summer 2008) to prevent it from being tabled for political reasons.
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