The XM and Sirius agreement should have been done a long time ago and is the only thing that will give satellite radio any real chance at long-term survival. Subscription products in a free environment are always niche, and cross-platform incompatibility prevents complete market penetration. Eliminating system incompatibilities will enable people to buy a satellite radio without any worries that they are buying a dead horse. Format wars are alway dumb, as nobody really ever wins.
The two companies worked over the weekend to finalize a plan that is expected to be structured as a “merger of equals,” although ABC News has learned the plan calls for Sirius CEO Mel Karamzen to run the new company.
As I said above, this is the only thing that will give subscription (ad-supported may come and dominate for all we know) satellite radio any opportunity to succeed.