TMCnet News
Sirius, XM Seek to Ease Merger Fears TMCnet Web Editor Almost two weeks after a proposed merger between satellite radio giants Sirius and XM was announced, managements of both companies attempted to calm their listeners’ fears by restating commitment to their customers.
Sirius went as far as to guarantee to its more than 12 million listeners that existing radios will not become obsolete if the merger is approved. The company unveiled the guarantee in a national print and retail advertising campaign today.
Presently, Sirius has millions of radios in the market, including many that are built into the vehicles manufactured by its automakers.
Sirius added that customers who sign up now for SIRIUS will have their subscription rate honored by the merged company.
XM also tried to placate its customers. In an open letter published in USA Today, XM said it expected existing radios will be able to receive a mix of programming from both services.
The company reportedly has more than 7.6 million subscribers.
XM added that content unique to its services, such as Major League Baseball, Oprah & Friends, Bob Dylan, and Opie and Anthony, would not be interrupted by the merger.
Under the proposed merger, XM shareholders would receive 4.6 shares of Sirius common stock for each XM share they own. Both companies would have equal representation on the combined board of directors.
The merger has garnered much negative publicity, with the FCC (News - Alert) and industry broadcasting groups concerned that a single satellite radio provider would hike prices and limit programming.
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