XM (XMSR) Merger With Sirius (SIRI) Approved With Industry Already Dead

The FCC, after one-and-half years of deliberation, finally approved the merger between XM Satellite (XMSR) and Siruis (SIRI). It does not matter much. The business is dying.

As part of the merger approval, the FCC insisted that the two companies cap their prices to consumers for the next three years. With their major source of subscribers, new car sales, in deep trouble, the ability to raise subscription fees is critical to their revenue growth.

Satellite radio is in a great deal of trouble The share prices off the two companies show that. With a combined $2.5 billion in debt, negative operating income, and plenty of competition that did not exist five year ago, the handwriting is on the wall.

Douglas A. McIntyre