XM And Sirius To Announce Merger, NY Post

According to the NY Post, XMSR and Sirius will announce a merger as early as today. Both Sirius and XM trade near multi-year lows as their subscriber growth decelerates and they face competition from new consumer electronics devices like the Apple (AAPL) iPod.

The companies each has over $1 billion in debt.

A consolidation is seen as way to save hundreds of million of dollars in redundant costs, but the FCC may resist a merger which would eliminate competition in the satellite radio market.

Douglas A. McIntyre