Running Head: XM SATELLITE RADIO
The Merge of XM and Sirius Satellite Radio
Jack Smith
Management
Davenport University
Abstract
The Merge of XM and Sirius Satellite Radio
Case Review and Relevant Facts
Since 1997, XM (formerly American Mobile since the late 1980’s) moved its private stock to public stock, signed licensed agreements with various media providers, and officially launched almost 200 mostly commercial-free channels. Once fierce rivals, XM and Sirius have taken the ultimate challenge of competing not against each other, but against the rapid growth of HD Radio, Internet radio, and next generation wireless technologies (Sirius XM radio Inc.).
The Merge of XM and Sirius Satellite Radio
Root Problem
Issues for XM and Sirius have come on since the arrival of iPods and MP3’s, which have allowed music lovers to “install adapters in their cars” en route to “skipping satellite altogether.” according to the Wall Street Journal (Wall Street Journal, 2009). Likewise, XM and Sirius constantly compete with ground-based stations and personal music devices in attempt for listener attention. On top of that, both have faced law suits from the record industry in apparent attempts to capture digital songs. To keep up with constant advanced technology, XM and Sirius Radio must provide broad content, exclusive sports coverage, entertainment, news, traffic, and weather offerings to stand a chance (Sirius XM Radio Inc.).
“We are excited for the many opportunities that an XM and Sirius combination has provided for our customers.” said Gary Parsons, chairman of XM and Hugh Panero, CEO of XM, in a joint statement (Sirius XM Radio Inc.).
The Merge of XM and Sirius Satellite Radio
References
Sirius and XM to combine in $13 billion merger of equals. (2009) Retrieved Nov 11, from
XM Sirius Satellite Radio. (2009) Retrieved Nov 11, from
Wallstreetjournal.com