fake news story guys.. (Score 1)

Mel Karmazin characterized a New York Post report of a potential XM-Sirius merger as the "third rumor" he has had to deal with in his first eight weeks as Sirius CEO. "I have not met with the [XM] chair or the CEO, so I have no idea where this has come from," he said during his firm's Wednesday morning (1/26) earnings conference call. Commenting later in the call on a question about potential antitrust restrictions for such a merger, Karmazin said he would never try to predict what the government would or wouldn't approve, adding that he thought such a merger would be a "difficult deal to get through." According to Post writer Tim Arango, the two satellite competitors have been meeting lately to talk about the possibility of a merger but the discussions have not advanced. Among the topics reportedly discussed is how to maneuver antitrust concerns that would arise from what would amount to a monopoly in the fledgling satellite radio business. To alleviate those concerns, the Post suggests the two rivals' strategy would be to convince regulators that satellite radio is part of the exploding mobil music market. Combining XM and Sirius would ease a price war for content, reduce marketing costs and provide other cost efficiencies.