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	<title>Comments on: The Sirius-XM Merger</title>
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		<title>By: Benjamin Rockmuller</title>
		<link>http://blog.robertsalomon.com/2007/03/07/the-sirius-xm-merger/comment-page-1/#comment-3</link>
		<dc:creator>Benjamin Rockmuller</dc:creator>
		<pubDate>Sun, 01 Apr 2007 13:48:36 +0000</pubDate>
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		<description>Hi Professor, nice analysis.  As you point out, a Sirius-XM merger makes a lot of sense from a strategic perspective, but cultural integration often imposes unforeseen integration costs above and beyond those evident in the initial &quot;pencil and paper&quot; analysis.

Generally, there are three options when integrating culture in a corporate merger: separation, blending, and dominance.   Knowing little about the firms in question, it seems that dominance may be the path for Sirius to pursue as a de facto acquirer.  Synergies in this case are primarily hard (the acquisition of market power, reduction of redundant product lines, more attractive bundling), so Sirius may not have to care about the preservation or integration of XM&#039;s culture.  Because separation is not practical given product redundancy, and blending is usually costly, cultural dominance may be the best strategic option.</description>
		<content:encoded><![CDATA[<p>Hi Professor, nice analysis.  As you point out, a Sirius-XM merger makes a lot of sense from a strategic perspective, but cultural integration often imposes unforeseen integration costs above and beyond those evident in the initial &#8220;pencil and paper&#8221; analysis.</p>
<p>Generally, there are three options when integrating culture in a corporate merger: separation, blending, and dominance.   Knowing little about the firms in question, it seems that dominance may be the path for Sirius to pursue as a de facto acquirer.  Synergies in this case are primarily hard (the acquisition of market power, reduction of redundant product lines, more attractive bundling), so Sirius may not have to care about the preservation or integration of XM&#8217;s culture.  Because separation is not practical given product redundancy, and blending is usually costly, cultural dominance may be the best strategic option.</p>
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