Satellite Radio Merger More Uncertain In Canada
February 21, 2007 at 9:39 AM (PT)
THE NEW YORK TIMES reports while many questions surround the planned merger of the XM and SIRIUS satellite radio systems in the UNITED STATES, the situation for the two companies’ CANADIAN affiliates may be, if anything, more uncertain.
Because CANADIAN rules ban foreign ownership of broadcasters, two CANANDIAN-owned companies began offering the XM and SIRIUS services, with some additional CANADIAN content, in late 2005. The companies, SIRIUS CANADA and CANADIAN SATELLITE RADIO HOLDINGS, have not discussed a merger of their own, but technology and programming changes resulting from any deal in the U.S. would probably force them to combine. As in the U.S., any such merger would face intense regulatory scrutiny.
"I think for us in the short term, this makes things more complicated," said JOHN BITOVE, Chairman of CANADIAN SATELLITE, which has a 10-year agreement to sell XM services in CANADA. "In the long term, it will be much simpler. We’ll spend our time growing the satellite radio business rather than going after each other."
The full article can be read here.