XM and Sirius Satellite Radio propose merger

In a deal worth $13 billion

20 February 2007 14:16 GMT / By Amber Maitland

The only two available satellite radio companies have announced a plans to merge their enterprises in a deal worth about $13 billion.

If the deal goes through, it means that people will only have one choice - to subscribe to the one satellite radio company available, or not.

The companies have promised that more content will be available, as they both have deals with different networks, as well as faster technological innovation.

Listeners have previously been forced to choose which one offers them what they're most interested in, whether it be talk show hosts or sports - XM broadcasts Major League baseball, while Sirius has rights to American football games.

However, the two companies have to face an investigation by the Federal Communications Commissions and the Department of Justice, who have to approve the merger.

Analysts and critics say the move would create a monopoly, but it more likely means a stronger position for satellite radio, which is in competition with regular, free radio, internet radio, and music downloads.