Executives of Sirius Satellite Radio are again hinting at a potential merger with XM Satellite Radio that they say would bring strong gains for investors.
Sirius executives mentioned “significant benefits” and “value creation” from a combination of the two radio companies.
“Consolidation creates value . . . particularly when you are in the same industry as anothercompany to be able to combine,” Sirius chief executive Mel Karmazin said
XM and Sirius are both facing slowing subscription growth and huge debt. Neither company has yet earned a profit.
“Both Sirius and XM could prosper much more easily if they took up the fight against terrestrial radio operators, rather than against each other,” Moran said.
Google has completed the development of radio advertising system and begun a limited test allowing customers to buy ads via its online ad-buying system.
Google Audio Ads is working with more than 700 radio stations covering more than 200 metropolitan U.S. markets. Analysts expect Google Audio Ads to shake up the $20 billion annual U.S. radio advertising industry by offering a simplified Web-based purchasing process for radio ads to its existing base of hundreds of thousands of text advertisers
One executive at a big radio company said last month the industry was moving cautiously in its dealings with Google.Â
Bank concurred, saying: “There’s a real mixed emotion among radio operators.” On the one hand, Google’s entry may turn radio advertising into more of a commodity. “A disaster could occur if people who were buying spots offline started buying online at a lower pricing level,” Bank said.
Google is seeking to expand beyond the pay-per-click Web search advertising market it dominates to offer advertising across a range of traditional and new media formats ranging from newspapers to online video.