The New York Post is reporting that XM and Sirius are holding preliminary talks on a possible merger. No discussions about price yet, however, according to to the Post's sources they have discussed potential antitrust concerns.
XM and Sirius are hoping the Federal Communications Commission considers satellite radio as part of the broader industry of delivering music and other content through mobile devices, such as cellphones.
According to the Post, the fact that Mel got on board with Sirius gave a lift to discussions between the two merging.
The NY Post sources say the deal could be at least a year away.
CNN/Money also cover this story here.
UPDATE: According to the Billboard Radio Monitor, Mel is 'quashing' the Sirius-XM Merger.
Mel Karmazin characterized a New York Post report of a potential XM-Sirius merger as the ?third rumor? he has had to deal with in his first eight weeks as Sirius CEO.
He stated, ?I have not met with the [XM] chair or the CEO, so I have no idea where this [rumor] has come from.? Later adding, that he thought such a merger would be a ?difficult deal to get through,? when asked about potential antitrust restrictions for such a merger.
I'm not so sure if Mel's statement actually 'quashes' the merger rumors - he simply stated that he hasn't met with Hugh Panero. Whether or not talks have been initiated are still unknown for sure.
ANOTHER UPDATE: Chance Patterson, XM spokesperson, has made a statement about the merger rumors, "This is the same news organization that last fall reported on its cover Dick Gephardt was named John Kerry's running mate. So consider the source. We don't comment on rumors and speculation, which this clearly rates as."
(well said)
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