Rumors about a merger started earlier this year. AP did a story that received some attention back in January.
Mel Karmazin (AP Photo) - Sirius CEO - denied any merger talks at that time.
On July 10, 2005, latimes.com ran a story that portrays the relationship between Sirius and XM as highly competitive and acrimonious at times.
I think that both of these businesses need one another as separate entities. Competition is a good thing. It provides an outside motivating force that will fuel sales and the quality of their programming.