![]() ![]() By the end of 2012, Sirius XM's subscriber base had grown to 23.9 million, mostly due to an increase in partnerships with automakers and car dealers a strong push in the used-car market and continued improved car sales in the US in general. Sirius XM ended 2009 with 18.8 million subscribers. Increased automobile sales in the US were also a factor. The company's resurgence was owed in part to the loan from Liberty Media. This came after net losses of $245.8 million in the year following the merger. In the fourth quarter of 2009, Sirius XM posted a profit for the first time, with a net income of $14.2 million. Post-merger Resurgence and growth Īfter coming close to filing for Chapter 11 only months after the 2008 merger, having gone so far as to hire lawyers to prepare a possible bankruptcy filing, Sirius XM was able to avoid declaring bankruptcy with the assistance of a $530 million loan from Liberty Media in February 2009, which Mel Karmazin negotiated in exchange for a 40% equity stake in Sirius XM. Several Congressional Democrats also opposed the merger, calling it anticompetitive and criticizing the Bush administration for allowing it to go through. Shortly after the Justice Department gave its support to the merger without restrictions, attorneys general from 11 states (Connecticut, Iowa, Maryland, Mississippi, Missouri, Nevada, Ohio, Oklahoma, Rhode Island, Utah, and Washington) urged the FCC to impose restrictions on the merger. ![]() The National Association of Broadcasters was adamantly opposed to the merger, calling it a monopoly. Sirius' programming included Howard Stern, Martha Stewart, live NBA and NFL games, and NASCAR races, while XM's included Willie Nelson, Opie and Anthony, Snoop Dogg, Oprah Winfrey, and Major League Baseball games. Conditions included allowing third-party satellite radio devices, producing new radios that can receive both XM and Sirius channels, allowing consumer choice, freezing subscription rates, setting aside 8% channels for noncommercial programmers, and paying $19.7 million in fines. ![]() The merger faced challenges in selling more subscriptions due to reduced car sales and online radio-streaming competition. The FCC approved the merger with a 3–2 vote, stating it was not a monopoly due to competition on the Internet. The US Department of Justice approved the Sirius and XM merger in 2008, recognizing satellite radio's competition with terrestrial radio, online streaming, and mp3 players. Sirius CEO Mel Karmazin ignored the FCC's rule, hoping other audio entertainment companies would consider the merger competitors. The merger aimed to lower programming costs by eliminating overlapping stations and duplicated marketing costs. The two satellite radio providers had 14 million combined subscribers, with XM having a $3.75 billion valuation. The $13 billion merger between Sirius and XM was announced on February 19, 2007, after years of speculation and negotiations. Pre-merger Early days of Sirius Main article: Sirius Satellite Radio Early days of XM Main article: XM Satellite Radio Merger Announcement Sirius XM Radio is a primary entry point for the Emergency Alert System. In September 2018, the company agreed to purchase the competing streaming music service Pandora, and this transaction was successfully completed on February 1, 2019. Sirius and XM argued that a merger was the only way that satellite radio could survive. The proposed merger was opposed by those who felt it would create a monopoly. Through Q2 2017, Sirius XM had more than 32 million subscribers. The deal was valued at $3.3 billion, not including debt. The merger brought the combined companies a total of more than 18.5 million subscribers based on current subscriber numbers on the date of merging. on July 29, 2008, 17 months after the companies first proposed the merger. Federal Communications Commission (FCC) approved the merger of XM Satellite Radio Holding, Inc. a direct, wholly owned subsidiary of Sirius XM Holdings, Inc. At the end of 2013, Sirius XM reorganized their corporate structure, which made Sirius XM Radio Inc. The company also has a minor interest in Sirius XM Canada, an affiliate company that provides Sirius and XM service in Canada. The companies Sirius Satellite Radio and XM Satellite Radio are now merged into SiriusXM Radio. SiriusXM is an American broadcasting company headquartered in Midtown Manhattan, New York City that provides satellite radio and online radio services operating in the United States. ![]()
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