In 2007, Sirius Satellite Radio and XM Satellite Radio Holdings announced an $11.4 billion "merger of equals." A year later, despite regulatory concerns, the FCC approved the deal. Yet the merged company was saddled with billions of dollars of long-term debt, and Sirius and XM had combined annual losses of more than $1 billion in recent years. Through exhibits and data on market share, strategic partnerships, and financial performance, this case teaches students how to analyze the outlook for Sirius XM.

Case id: 110414