Based on the logic that XM is significantly at-risk for going under, which would leave Sirius all alone in the satellite radio market and not obligated to offer a-la-carte pricing to consumers, the DOJ and FCC should approve the merger to guarantee a-la-carte pricing and a robust radio entertainment platform for consumers. There is also a chance that both companies could go under, which, assuming no other entity were to buy out either tattered company, might leave many American consumers and auto retailers with useless radios installed in their vehicles. Additionally, failure of either or both companies could result in a loss of royalty revenue…and we all know that starving artists need to get paid.

Interestingly enough, the stock prices of XM and Sirius generally tend to move in parallel as opposed to anti-parallel (i.e. Intel & AMD). When one company reports good news, both of their stocks tend to rise. It seems that these two companies are not engaging each other as competitors in the market. These two companies appear (and have for a while) to be an oligopoly. I suspect that whether or not the merger is approved, XM and Sirius will continue to collaborate in order to redefine the consumer’s radio entertainment experience and safeguard their very survival in the entertainment market.

For the record, I do not use either of these companies’ services as I am quite content with my MP3s.