New York - Nov 28, 2006 - Denver-based analyst Kit Spring of Stifel Nicolaus believes that a merger between Sirius Satellite Radio and XM Satellite Radio is likely to occur within the next 18 months. He put the chances of a bid by one side or the other at 75 percent.
Sirius CEO Mel Karmazin and XM Chairman Gary Parsons suggested the possibility of a merger, but both have also said that they think that regulators would block the action.
Radio magazine has pondered the viability of an audience supporting two satellite services, and it's not surprising that a merger could be considered. The two services each occupy 12.5MHz of adjacent spectrum, which would provide a substantial chunk of spectrum to a single entity.