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Neither company will confirm that anything is going on, but the New York Post says that execs from XM and Sirius have been in merger talks lately. Doesn't sound like things are too far along—it could take as long as a year before they put together a deal, and there are plenty of technical, antitrust, and FCC licensing issues that would have to be hammered out first—but given how small the overall market for satellite radio is (especially considering the infrastructure costs), some sort of merger or alliance like this might be inevitable (the big question is whether the Feds would ever allow it).

[Thanks, Nick B.]

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