The Satellite Radio business is not even fully off the ground, and already the two Satellite Radio players, XM Radio and Siruis are discussing merger, reports the New York Post..

The two companies have talked in the past about merging, but the discussions never got to an advanced stage. But in the wake of Sirius’ hiring of former Viacom President Mel Karmazin in November, the issue has gained renewed urgency, sources said.

It should not come as a surprise as both companies despite all the buzz (ala TiVo and Treo) are sucking wind, and losing money. Once together, they can stop spending marketing dollars bitch-slapping each other and instead focus on getting more customers away from terrestrial radio networks. Sirius which reported its quarterly results this morning, posted a loss of $712.2 million on revenues of $66.9 million. In 2005, the company expects an operating loss of $480 million on revenues of $210 million.