WashPost: Sirius Continues to See Benefits in Potential Merger with XM

Authored by Mark Hefflinger on December 8, 2006 - 1:47pm.

Washington - Fueling speculation about a potential merger between two bitter rivals, executives from Sirius Satellite Radio said that they see "significant benefits" from a combination with XM Satellite Radio, The Washington Post reported on Friday.

"Consolidation creates value . . . particularly when you are in the same industry as another company to be able to combine," Sirius CEO Mel Karmazin told analysts.

However, it is unclear if federal anti-trust regulators would approve such a merger. His statements, as well as those from CFO David Frear, have helped to spur interest in the two companies' stocks in recent days. A spokesman from XM declined to comment to The Post.

The companies have about 14 million combined subscribers, but each is facing slowing subscriber growth and debt of more than $1 billion.

Related Links:
http://tinyurl.com/vppzl (Washington Post)