Executives of Sirius Satellite Radio are again hinting at a potential merger with XM Satellite Radio that they say would bring strong gains for investors.
Sirius executives mentioned “significant benefits” and “value creation” from a combination of the two radio companies.
“Consolidation creates value . . . particularly when you are in the same industry as anothercompany to be able to combine,” Sirius chief executive Mel Karmazin said
XM and Sirius are both facing slowing subscription growth and huge debt. Neither company has yet earned a profit.
“Both Sirius and XM could prosper much more easily if they took up the fight against terrestrial radio operators, rather than against each other,” Moran said.