SIRIUS XM merger offers competition within the audio entertainment marketplace.

Have you ever watched a STOCKUMENTARY? Click the following  link to view your first ever full length STOCKUMENTARY: http://www.stockwire.com
   
  Thomas Hazlett, the former Chief Economist  of the Federal Communications Commission, Professor of Law & Economics at  George Mason University, and a principal in Arlington Economics, today released  a study regarding the merger of SIRIUS Satellite Radio (Nasdaq: SIRI) and XM  Satellite Radio (Nasdaq: XMSR).
 
  The paper, "The Economics of the Satellite Radio  Merger," explores the financial and strategic rationale behind the  SIRIUS-XM merger and concludes that the merger offers the potential to yield  substantial efficiencies, benefit consumers and enhance the dynamics of  competition within the audio entertainment marketplace. The paper was prepared  for XM and SIRIUS and was filed today at the Federal Communications Commission  (FCC) as part of the companies' merger application.
 
  Commenting on the merger, Professor Hazlett stated,  "After a thorough analysis, it is my opinion that the merger of XM and  SIRIUS will predictably enhance consumer welfare. The National Association of  Broadcasters' (NAB) staunch opposition to the merger illustrates their similar  expectation. The improved economic vitality of a combined satellite radio  company would drive industry innovation, promote competition and enhance  programming and pricing options for customers."
 
  Key findings from the study include:
 
  The proposed XM-SIRIUS merger will increase competition among  providers of audio entertainment.
 
  -- AM/FM radio -- "free radio" -- competes with  satellite radio, as evidenced by long-standing opposition by terrestrial  stations to satellite rivalry and to the proposed merger.
 
  -- If the terrestrial broadcasters genuinely believed that the  merger would substantially increase price, they would support -- not oppose --  the merger, given that higher prices for satellite radio would translate into  larger audiences and ad revenues for them.
 
  -- Since satellite radio first appeared on the scene,  broadcasters have consistently attempted to restrain this new service to  protect their interests at the expense of market competition.
 
  Numerous independent investment analysts have concluded that  the proposed merger will yield substantial efficiencies.
 
  -- The merger is expected to lift the financial prospects of  satellite radio, lower capital financing costs, and foster economies of scale.  Consensus estimates identify cost synergies of between $3 billion and $7  billion in net present value.
 
  -- These efficiencies will permit more aggressive investment  in satellite systems and products and prompt competitive responses from  terrestrial broadcasters and other rivals.
 
  By any measure, satellite radio is dwarfed by terrestrial  radio.
 
  -- The most common measure of economic size is revenue.  Terrestrial broadcasters accounted for over $21 billion in sales in 2006, as  compared to just $1.6 billion for satellite -- less than 7% of overall radio  broadcasting revenues.
 
  -- In market value, terrestrial stations have an estimated  enterprise value, in aggregate, of about $82 billion as compared to about $9  billion for XM and SIRIUS combined.
 
  -- XM and SIRIUS compete in a complex and dynamic market. When  iPods and other digital audio media are considered in addition to terrestrial  broadcasting, satellite's revenue share falls to 4%.
 
  Consumers will benefit from the proposed merger.
 
  -- By combining two small players in the audio entertainment  market, the transaction will bring economic vitality to satellite radio. This,  in turn, will sustain a wide range of valuable consumer options and spawn new  services and products.
 
  -- Consumers benefit from lower-cost products and services, as  well as wider program choice. By combining operations, satellite operators seek  to create greater scale economies in radio receivers, and to supply a wider  array of popular programming to subscribers.
 
  There is intense inter-modal competition among providers of  audio entertainment.
 
  -- Consumers have a wide range of audio entertainment choices,  including advertising-supported terrestrial broadcasting, subscription  satellite radio, MP3 devices, and other emerging digital media. The fact that  there are widely disparate pricing models among these platforms demonstrates  that the competitive frontier is largely defined in terms of quality and  convenience of service, rather than price.
 
  -- Taking the fluid nature of the market into account, it is  clear that satellite radio broadcasters are not dominant players but compete  with a host of other products and services.
 
  Investment analysts see the merger as an attempt by satellite  radio providers to drive costs down and to offer a more competitive product.
 
  -- Independent projections show an increase in subscriber  growth and more programming choices -- a strongly pro-consumer outcome.
 
  -- A merger that reduces effective prices to subscribers and  delivers billions of dollars worth of cost saving efficiencies is in the public  interest under either a "consumer welfare" or a "total  welfare" standard.
 
  Hazlett concludes that it is for these reasons that Wall  Street analysts have argued in favor of this transaction since long before the  parties negotiated a merger agreement. Likewise, these same reasons serve as  the basis for incumbent broadcasters' opposition.
 
  The analysis and views expressed in this study are solely  those of Professor Hazlett, whose research on both high-tech markets and  economic regulation has been published in leading economics journals and law  reviews. Professor Hazlett received financial compensation for his time in  assembling this paper.
 
  To view the full paper or to learn more about the SIRIUS-XM  merger, please visit http://www.XMmerger.com or http://www.SIRIUSmerger.com.
 
  About SIRIUS
 
  SIRIUS, "The Best Radio on Radio," delivers more  than 130 channels of the best programming in all of radio. SIRIUS is the  original and only home of 100% commercial free music channels in satellite  radio, offering 69 music channels. SIRIUS also delivers 65 channels of sports,  news, talk, entertainment, traffic, weather and data. SIRIUS is the Official  Satellite Radio Partner of the NFL, NASCAR, NBA and NHL, and broadcasts live  play-by- play games of the NFL, NBA and NHL, as well as live NASCAR races. All  SIRIUS programming is available for a monthly subscription fee of only $12.95.
 
  SIRIUS Internet Radio (SIR) is a CD-quality, Internet-only  version of the SIRIUS radio service, without the use of a radio, for the  monthly subscription fee of $12.95. SIR delivers more than 75 channels of talk,  entertainment, sports, and 100% commercial free music.
 
  SIRIUS products for the car, truck, home, RV and boat are  available in more than 25,000 retail locations, including Best Buy, Circuit  City, Crutchfield, Costco, Target, Wal-Mart, Sam's Club, RadioShack and at  http://www.shop.sirius.com.
 
  SIRIUS radios are offered in vehicles from Audi, Bentley, BMW,  Chrysler, Dodge, Ford, Infiniti, Jaguar, Jeep , Land Rover, Lexus, Lincoln,  Mercury, Maybach, Mazda, Mercedes-Benz, MINI, Mitsubishi, Nissan, Rolls Royce, Scion,  Toyota, Volkswagen, and Volvo. Hertz also offers SIRIUS in its rental cars at  major locations around the country.
 
  Click on http://www.sirius.com to listen to SIRIUS live, or to  purchase a SIRIUS radio and subscription.
 
  About XM
 
  XM is America's number one satellite radio company with more  than 8 million subscribers. Broadcasting live daily from studios in Washington,  DC, New York City, Chicago, the Country Music Hall of Fame in Nashville,  Toronto and Montreal, XM's 2007 lineup includes more than 170 digital channels  of choice from coast to coast: commercial-free music, premier sports, news,  talk radio, comedy, children's and entertainment programming; and the most  advanced traffic and weather information.
 
  XM, the leader in satellite-delivered entertainment and data  services for the automobile market through partnerships with General Motors,  Honda, Hyundai, Nissan, Porsche, Subaru, Suzuki and Toyota is available in 140  different vehicle models for 2007. XM's industry-leading products are available  at consumer electronics retailers nationwide. For more information about XM  hardware, programming and partnerships, please visit http://www.xmradio.com.
 
  During pre-market trading shares are up .7% to $2.77.
 
  As the saying goes...follow the money!

To see the complete Movers & Shakers Blog go to:  http://www.stockwire.com .

About Stockwire:
  Stockwire is a company that is pioneering a new way to  research companies before you invest them. It's called a Stockumentary. A  Stockumentary is a documentary on a publicly traded company. Imagine a Dateline  NBC segment, but on a publicly traded company. We are the first company to ever  bring this type of quality research to investors in this format.

The Stockumentary has video interviews with management,  product demos, video tours of office or factory, research reports, sec filings  and much more. All of this is delivered to investors in high quality video,  either by mail or email.

Stockwire.com is owned by Stockwire Research Group Inc.  (SRGI) and is an independent electronic publication committed to providing our  readers with factual information on selected publicly traded companies.

As detailed below, this publication accepts compensation  from some of the companies from which it features. To the degrees listed  herein, this Newsletter should not be regarded as an independent publication.  All statements and expressions are the sole opinions of the editors and are  subject to change without notice. A profile, description, or other mention of a  company in the Newsletter is neither an offer nor solicitation to buy or sell  any securities mentioned.

While we believe all sources of information to be factual  and reliable, in no way do we represent or guarantee the accuracy thereof, nor  the statements made herein.

We encourage our readers to invest carefully and read the investor  information available at the web sites of the Securities and Exchange  Commission ("SEC") at www.sec.gov and/or the National Association of  Securities Dealers ("NASD") at www.nasd.com. The NASD has published  information on how to invest carefully at its web site.

Readers can review all public filings by companies at the  SEC's EDGAR page. www.sec.gov/edgar.shtml

Stockwire.com is an independent electronic publication  committed to providing our readers with factual information on selected  publicly traded companies. Stockwire.com is not a registered investment advisor  or broker-dealer. All companies are chosen on the basis of certain financial  analysis and other pertinent criteria with a view toward maximizing the upside  potential for investors while minimizing the downside risk, whenever possible.

From time to time SRGI sells shares in the open market it  receives as compensation for coverage of client companies. Since the shares are  received as compensation for services as previously disclosed, and not for  investment purposes, the editors do not view the sale of the shares as  contradictory to any advice delivered in the content. This should be viewed as  a conflict of interest by shareholders or prospective shareholders of the  client companies.

Moreover, as detailed below, this publication accepts  compensation from third party consultants and/or companies which it features on  Stockwire.com. Likewise, Stockwire.com is owned by Stockwire Research Group  Inc. (SRGI). To the degrees enumerated herein, this newsletter and website  should not be regarded as an independent publication.

All statements and expressions are the sole opinions of the  editors and are subject to change without notice. A profile, description, or  other mention of a company on Stockwire.com is neither an offer nor  solicitation to buy or sell any securities mentioned. While we believe all  sources of information to be factual and reliable, in no way do we represent or  guarantee the accuracy thereof, nor the statements made herein.

The editor, members of the editor's family, and/or entities  with which the editor is affiliated aside from Stockwire Research Group Inc.  (SRGI) itself, are forbidden by company policy to own, buy, sell or otherwise  trade stock for their own benefit in the companies who appear in the  publication unless specifically disclosed in the newsletter.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE  DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES  IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS  PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE  COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN CONSENT OF THE  EDITORS OF STOCKWIRE.COM.

We often accept restricted shares of company stock; by SEC  regulations, restricted shares cannot be sold into the market for a period of  at least one year from the time that the shares are issued. In such cases, we  detail in the Disclaimer the specific term of any restrictions. We also receive  compensation in the form of stock options, in which case we receive the right  to buy shares of the stock of the company at issue, at a specified time and a  specified price. In such circumstances, we specify on our Disclaimer the terms  of the options received. On occasion, we also accept free-trading shares in a  company that we cover. However, by policy we generally do not buy or sell any  shares of a company's stock within three trading days after any such company's  profile, commentary, or other company-specific information is disseminated on  Stockwire.com Web site. In cases where we do trade within the three day window,  our volume will never represent more than 5% of the daily volume, thereby  minimizing any effect we could have on the potential price movement.

While our policies as detailed above are designed to  minimize any impact upon our members of a conflict of interest between our  company and our members, each member should be fully aware that such potential  and actual conflicts of interest may well exist due to the compensation  structure detailed herein. For this reason, and because the information  contained on Stockwire.com is updated on a regular basis as circumstances  change, each member is strongly encouraged to periodically review the Profile  Compensation section at http://www.stockwire.com/disclaimer_profiles.htm

Stockwire Research Group, Inc. .
  512.358.8440 .
  info@stockwire.com .