The merger report between XM Canada and SERIUS Canada - Essay Example

The availed report is supposed to be taken on April 11, 2011, where the launch and implementation of proposal is supposed to be done and just on time. Some of the prevailing articulation that were on the top of the agenda for any company to acquire merger rights were the issue of management team makeup, consolidation of marketing strategies, integration of operations and information and the activities articulation Financial aspects. Previously, Federal communications commission approved Digital Audio Radio service to use a certain radio satellite broadcast rights, which oversees American mobile Radio XM Radio paying $ 93 million for its license and CD radio that currently known as SERIUS Satellite Radio paying $ 89 million for its license.

However, both two broadcasting company has intense competition working based on subscription models to woe their customers. Many consumers have been signed up on the daily basis for as little as US $ 12.95 with an aim of making their consumers enjoy quality and affordable digital music, news, sports, talk and more. According to the availed report and plan tabled before Redmond indicates that the two companies’ offers subsidized radio upgrades that make purchasing decision easier on the prevailing consumers.

Some of the technology that the two companies tried to outdo each other is by availing a project that was overseen manufactures installing satellite radio equipment in every car and then provided free service for the new car owner for a period of one full year. Going by the business analysis and statistics, the business models based on the free installation norms did not work well for these two companies since the aspect of free services usually leads to high and expensive price maintenance. When maintenance price is high, a farm usually suffers a loss (Kaser and Brooks 24-27).

However, the introduction of programming skills has triggered the aspect of growth in both companies leading to streamlined operations and refining products offerings, one of the positive articulations that lead business into a positive note. Managers within any prevailing business need to employ platforms that initiate marketing strategies, which triggers efficiencies norm. All this can be achieved through the introduction of new marketing and programming model as administered within the case of XM and SIRIUS media houses.

Through new strategic model, both media houses have been well received after providing an additional merger platform resulting to $4 a month. Based on the discussion availed by the two companies involving XM Canada and SIRIUS Canada Inc, the report indicates that the two companies agreed to a merger perception probably on 24th, November the year 2010 that a total of 22.7 percent shares will be for Canadian Sattelite Radio Holdings Inc., 37.1 percent shares for SIRIUS XM, 15 percent for CBC, 15 percent for Slaight Communications and 10.

2 percent for other investors. This decision was based on management team and its perception, operations and information systems availed, marketing strategies and financial articulation. For the purpose of joint within these, two companies, works based on team management that underpins the aspects of management structures initiated. There is a critical rivalry perception here in that it has been so difficult for the two companies to decide who should be picked up and be included within the executive but this was done through the use of integration model.

In this process the two companies appointed Michael Washinushi, who was the chief financial