It will be “business as usual” for Sirius and the CBC’s Sirius channels, according to CBC veep Michel Tremblay.
His full statement, issued a few minutes ago:
SIRIUS Satellite Radio Inc. and XM Satellite Radio Inc. today announced a $13-billion merger of equals in the United States, which has been the subject of much speculation in recent months. This proposed merger has raised questions with respect to its effect on SIRIUS Canada’s operation.
Clearly, the proposed transaction is of interest to SIRIUS Canada and its owners, including CBC/Radio-Canada. SIRIUS Canada and its owners will be reviewing the progress of the proposed transaction and closely monitoring developments. However, based on the information that has been released today, SIRIUS Canada and CBC/Radio-Canada believe it will be business as usual for SIRIUS Canada’s Canadian operations.
Although SIRIUS Satellite Radio Inc. does have an ownership interest in SIRIUS Canada, they are two separate and distinct companies. SIRIUS Canada is Canadian-controlled: CBC/Radio-Canada and Standard Radio each hold 40 per cent of the voting shares of the company.
And as an aside, why do p.r. people keep putting corporate or show names in all-caps? Sirius is not an acronym nor an initialism, thus it shouldn’t be all caps. Same with LITTLE MOSQUE ON THE PRAIRIE (seriously, that’s how they write it in CBC news releases). Can someone from CBC Corporate Communications enlighten me?
It’s confirmed. Both Sirius and XM Radio in the U.S. are planning to merge. Needless to say, both of the companies’ Canadian arms are carefully reviewing the proposal.
Three cheers for competition. Hip hip… oh, never mind.
Canadian Reaction
XM Canada already loves the idea. “This is great news for the satellite radio industry in North America and could offer further benefits to consumers, retailers, partners and shareholders,” said John I. Bitove, Chairman of Canadian Satellite Radio Holdings Inc. “As Sirius and XM seek U.S. government approval, we will diligently review the possible alternatives available to Canadian Satellite Radio.”
Read: “Holy crap, we want to merge ASAP too!!!”
Sirius Canada, XM Canada’s competitor, is 40% owned by the CBC. They put out a release late today, saying, uh, pretty much nothing. “SIRIUS Canada’s 300,000 subscribers will continue to receive the best news, talk, sports, entertainment and commercial-free music programming available,” said Mark Redmond, President and CEO, SIRIUS Canada Inc. “SIRIUS Canada’s board of directors and senior leadership team is working closely with SIRIUS Satellite Radio in the U.S., CBC and Standard Radio Inc. here in Canada to ensure the Canadian operation continues to deliver the best entertainment available.”
UPDATE: The U.S. broadcast regulator is saying it will block such a merger.
There’s a buzz growing today that suggests XM and Sirius in the U.S. will announce a merger shortly. Personally, I don’t understand how the FCC would allow these two companies — the only two in their category — to merge, and thereby eliminate all competition from the market. This would have an impact on the Canadian operations of the same name, as they are partially owned by their American parents.