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January 04, 2008

Revisiting Merger Buzz Between Sirius and XM with Common Connections

Screenhunter_02_jan_04_1324 Though Sirius Satellite Radio was able to end the year with a 38% increase in subscribers, analysts can’t help but question whether or not greater success would be seen with the approval of the company’s attempts at merging with XM Satellite Radio. Not much faith is being put in Sirius’ viability as a stand-alone company, leading once again to speculation that a merger with XM could still be sought after (see article by Douglas McIntyre in BloggingStocks).

Federal regulators have been quick to reject such a deal on the grounds that it would create a monopoly that would increase consumer costs and reduce competition. Through the creation of an IntellectSpace Knowledge Map, NewsVisual investigated the connections that could be preventing Sirius and XM from giving up on a deal so easily.

Joseph P Clayton (Chairman of Sirius) and James E Meyer (President of Operations and Sales of Sirius) may be well acquainted with XM Director Eddy W Hartenstein through the Thomson Corporation. Clayton and Meyer were previously Senior Executives at Thomson, where they likely knew Hartenstein, who continues to serve as a Director of the company.

PanAmSat may also serve as a worthy connector as a number of individuals at Sirius and XM, namely Eddy Hartenstein, Jack Shaw and Adrienne Elizabeth Calderone. Each served in Board or Senior Executive Positions at PanAmSat prior to the company’s acquisition by Intelsat in 2005. Also, Sirius Founder Martine A Rothblatt is the Founder of PanAmSat, further strengthening Siruius’ ties to XM. Rothblatt also had a hand in helping launch WorldSpace Inc, where XM Chairman Gary Parsons was a Director through 2006.

If Sirius and XM have continue to have their hearts set on a merger, common connections could be greatly utilized to find a way to make it happen.

Click here or copy this link into your Internet Explorer browser for an interactive version of this IntellectSpace Knowledge Map: http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=7d53b3c3-0dad-4d79-bccb-3f2cedc77abc

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