Both XM and Sirius have been dropping hints since last summer that the two could merge into one giant satellite radio provider with a subscriber base of 12 million. It appears after a marathon negotiation session last weekend, the two are finally ready to make it offiicial sometime today and start the long process of gaining SEC approval. Though approval will likely take over a year, we doubt the feds will break this one up. While XM and Sirius technically compete with each other for subscribers, satellite radio as an industry is in a fight for its life with other forms of audio distribution, like regular old terrestrial radio, internet radio and the 800 lb. gorilla, Apple's iPod. These two company's have a better shot at surviving by jumping in the same bunker.

Of course, auto interiors are the primary front in this war, which makes the merger interesting to us. Car owners subscribed to one of the two services will be the big winners, as Howard Stern and Oprah will now occupy the same dial. You'll be able to get all your satellite radio sports coverage with one subscription now, as well.

Trying to meld two established brands into one, however, is not an easy thing to do. Just ask DaimlerChrysler if you need a reference. We chuckled out loud while reading the linked article from the New York Post when the author describes the deal as a "merger of equals". Sure...

[Source: The New York Post]

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