FCC Chair Quashes Satellite Radio Merger Speculation
The sell-off was sparked by comments made by Kevin Martin in response to a press query that FCC rules prohibit "one entity owning both of those businesses." Speculation about a combination of the two largest satellite-radio providers has been rife lately, with both companies apparently more open to a pact.
Sirius CEO Mel Karmazin got the ball rolling earlier this month when he noted a merger could serve the best interests of both companies. "One way you can create shareholder value is through consolidation, particularly in a fragmented industry like radio," says Karmazin. "Conceptually, a deal makes sense, and you could add value from synergies."