AfterDawn: News

Sirius/XM merger gets support from three U.S. lawmakers

According to a statement issued by Sirius Satellite Radio and XM Satellite Radio, the proposed purchase of XM by Sirius has received support from three U.S. House of Representatives lawmakers. Connie Mack of Florida (Rep), Joe Baca of California (Dem) and Bob Filner of California (Dem) have come out to support the merger according to the statement. The deal is currently being evaluated by the Justice Department which is trying to predict what such a merger would mean for competition.

Since XM and Sirius are the two only Satellite Radio providers in the United States, licensed 10 years ago by the Federal Communication Commission (FCC), the proposed merger sparked alarm and criticism from all sides because it would kill competition between the two. However, XM and Sirius claim that competition has changed dramatically in a decade, and Satellite Radio itself has to compete with other technologies such as HD Radio and even MP3 players.



General Motors Corp has also thrown support behind the merger. The company installs XM Radio equipment into some of the its cars. It has urged the FCC to avoid putting conditions on the deal.

Source:
Reuters

Written by: James Delahunty @ 16 Dec 2007 8:27

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• 19 comments

• booga1134

  I have both Sirius and XM and I think Sirius programming is a HUGE step above what XM has to offer. All I want from XM is the Cigar Dave program, Glen Beck and Coast to Coast Am.

  16.12.2007 17:50 #1

• ZippyDSM

  Originally posted by booga1134: I have both Sirius and XM and I think Sirius programming is a HUGE step above what XM has to offer. All I want from XM is the Cigar Dave program, Glen Beck and Coast to Coast Am.the only trouble is monoplies are made from huge mergers like tis...hopefully they wont price hike...much... LOL
  
  
  Hell they should lower rates.....

  16.12.2007 20:00 #2

• b18bek9

  with the merger the prices should lower and radio is free so its harder for satellite to compete with free radio mp3 players an all the other entertainment media out figuring u have to pay for a radio for xm/sirius and subscription. But we all know most the House of Representatives have a bunch of lobbiest throwing money to slow or stop the merger figuring most our government is bought by big corps. and free radio is screwed figuring they are losing alot of business from having to pay royalties to labels for songs they have plus lacking revnue. I cant wait to see the line up of shows that are to come. Love the howard stern channels and comedy stations and a bunch of other so cant wait.

  16.12.2007 22:01 #3

• ZippyDSM

  Originally posted by b18bek9: with the merger the prices should lower and radio is free so its harder for satellite to compete with free radio mp3 players an all the other entertainment media out figuring u have to pay for a radio for xm/sirius and subscription. But we all know most the House of Representatives have a bunch of lobbiest throwing money to slow or stop the merger figuring most our government is bought by big corps. and free radio is screwed figuring they are losing alot of business from having to pay royalties to labels for songs they have plus lacking revnue. I cant wait to see the line up of shows that are to come. Love the howard stern channels and comedy stations and a bunch of other so cant wait.Funny I thought they were bought off to allow the merger so competition could stop and rates increase..like with cable.... LOL

  16.12.2007 22:08 #4

• b18bek9

  if u cared to read the facts the N.A.B aka National Association of Broadcasters which has been tryin to throw tons of money to stop the merger of sirius and xm are basicly tryin to stay afloat xm i think more then sirius. And its funny u say that Zippy when it takes longer for this merer to go threw yet oil companys merge all the time ina few days or week and this merger has taken months i know this is one of the longest mergers to get approved and this is a payed service u dont need like water gas and electricity...not like sbc & at&t or time warner aol which is 3 different types of media merging so in my opinion those mergers went thru with no hassels yet this is taking forever i just find it to be big waste of time and tax payers money seriously.

  17.12.2007 16:22 #5

• spydah

  Originally posted by b18bek9: if u cared to read the facts the N.A.B aka National Association of Broadcasters which has been tryin to throw tons of money to stop the merger of sirius and xm are basicly tryin to stay afloat xm i think more then sirius. And its funny u say that Zippy when it takes longer for this merer to go threw yet oil companys merge all the time ina few days or week and this merger has taken months i know this is one of the longest mergers to get approved and this is a payed service u dont need like water gas and electricity...not like sbc & at&t or time warner aol which is 3 different types of media merging so in my opinion those mergers went thru with no hassels yet this is taking forever i just find it to be big waste of time and tax payers money seriously.
  Very good points. I never looked at this merger like that but you are on point with your comments.

  17.12.2007 22:55 #6

• RNR1995

  Mergers have NEVER been good for the public
  They just create monopolies that then can offer inferior products at a higher price. Competition is what drives people and companies to excel.
  Look at ANY market with competition great products at great prices

  22.12.2007 09:52 #7

• JOHNSTARR

  This merger blockage has been ticking me off for quite awhile since I have 10,000 shares of siri(cost avg=3.96$). The market price is sitting at 3.17$ however, if the merger goes through it will probably reach 6$ and if it doesn't, it will sink to 2.20$ and i will be jumping off the nearest cliff.
  
  I agree 100% with what b18bek9 has said and Howard Stern is truly #1 :)
  

  Not-Banned Yet Premium 360 Benq 1.3
  
  XBOX 1.4
  Zenium Gold SP Solderless
  Maxtor 300 GB
  
  
  
  
  
  
  
  
  

  23.12.2007 05:51 #8

• ZippyDSM

  Originally posted by RNR1995: Mergers have NEVER been good for the public
  They just create monopolies that then can offer inferior products at a higher price. Competition is what drives people and companies to excel.
  Look at ANY market with competition great products at great pricesmore like regulation+mergers= monopolies, goverment sanctioned ones at that.
  
  Its one thing when the goverment gives a damn and tries to artificially lower the price on things like gas,milk and meat but sadly this is not the 40s or the 50s when the goverment could govern itself, this is for sale to the highest bidder goverment we have now.
  

  For all the console/game fanboys out their.
  http://www.escapistmagazine.com/articles...Console-Rundown
  Oh god I can't stop laughing!!!

  23.12.2007 13:37 #9

• borhan9

  Quote:Since XM and Sirius are the two only Satellite Radio providers in the United States, licensed 10 years ago by the Federal Communication Commission (FCC), the proposed merger sparked alarm and criticism from all sides because it would kill competition between the two. However, XM and Sirius claim that competition has changed dramatically in a decade, and Satellite Radio itself has to compete with other technologies such as HD Radio and even MP3 players.This removes competition and makes prices go up soo how is this seen as a good move. I am not for this one bit.

  24.12.2007 08:16 #10

• JOHNSTARR

  This just in, XM will go busto if the merger doesn't go through and once again the competition isn't between xm and sirius but Mp3, testical radio, HD radio ect ect.

  24.12.2007 18:27 #11

• isaactheo

  Just think of the file material the DoJ requested and got: 6 million pages to study. I know it is important not to create a positive precedent for a merger which is alledgedly viewed as a monopoly.
  Of course, there is this 10-year-old FCC limitation in that one company should not be able to control the entire sprectum. But that was 10 years ago. Moreover, it is a merger of equals, combining forces to obtain efficiency and benfits for the consumer, their astonishing 17 Million Voluntary Subscribers!
  
  For years I had not studied anti-trust law and boy, what subject to read.
  However, it comes down to recognizing market power and monopoly power -- both do not apply in this case.
  
  In my view therefore a monopoly 100% not the case -- as the strongest merger-opponent is the NAB: why would they worry, if not fishing in the same, wide pond? Cross-elasticity is the word; it is not as if radiolisteners have starved from entertainment before the SDARS were there... on the contrary: the market landscape has become so wide every consumer has a free choice of radioconsumption. If as a consumer you desire uninterrupted, ad-free reception and CD-quality throughout the country, driving from coast-to-coast of course you buy one, or two or soon: just one supplier of this service. If you can't or do not want to pay: fine, stick to good old FM or AM or CD or even cassette and iPod.
  Even if the happily merged companies nastily would up their charges to say $29.99/month , they would shoot in their feet as consumers still have a choice and would churn rapidly. This is not about about a milk-cartel!
  So DoJ, so FCC: this is 2008 go ahead, give the merger a greenlight and get back to bigger matters.
  
  Isaac, Rotterdam, Holland

  16.1.2008 16:23 #12

• ZippyDSM

  isaactheo
  
  So basically like with the baby bells rejoining you have it where if they jin prices will go up but not a lot, if they don't join the prices will goup anyway and one gets sold off, at least with them merging they can divide profit better and in tame lower price.
  
  Bascily damned if you do and damned if you don't, only if you don't things can get worse.

  16.1.2008 16:33 #13

• isaactheo

  ZippyDSM -- very well put.
  
  Not moving is moving backward.
  
  Both companies have wisely acted over the past year as if they were stand-alone - technically they are.
  
  If they do not merge a shakeout is bound to happen or a meagre life for each - not good for the Voluntarily Paying Consumer / Listener.
  
  
  So speak up wherever you can and get this merger rolling.

  16.1.2008 16:53 #14

• ZippyDSM

  Originally posted by isaactheo: ZippyDSM -- very well put.
  
  Not moving is moving backward.
  
  Both companies have wisely acted over the past year as if they were stand-alone - technically they are.
  
  If they do not merge a shakeout is bound to happen or a meagre life for each - not good for the Voluntarily Paying Consumer / Listener.
  
  
  So speak up wherever you can and get this merger rolling.its easy to cought up in hating congolerants and what not, hell I do it all the time, the MAN is sometime to fear and laoth after all ^_~.
  
  But it comes down to the end result, looking comcast ya its a monopoly if its in a area with no other board ban provider or sat TV provider other wise they are just another company looking to expand like version or At&t.
  
  I still see the merger as a double edge sword for the short run you'll have more price hiking than anything else but in time they should be able to offer better deals since they have the sat radio market tied up...but looking at comcast there is no lowering in thier pricing schemes and that is what is feared.

  16.1.2008 17:04 #15

• isaactheo

  So true ZippyDSM -- same goes for your drinkingwatersupplier and the cooking- & heatinggascompany.
  
  But -- since those are vital commodities suppliers' prices are controlled & regulated.
  
  Now satelliteradio - that's not a lifeline is it?
  
  So even if in the end there is just one big one -- whether it is is good, or bad, or cheap, or expensive -- the Consumer / Listener will judge and stay or churn -- exactly as in a movietheater or restaurant.
  
  Ciao, bedtime
  Isaac

  16.1.2008 17:13 #16

• ZippyDSM

  Originally posted by isaactheo: So true ZippyDSM -- same goes for your drinkingwatersupplier and the cooking- & heatinggascompany.
  
  But -- since those are vital commodities suppliers' prices are controlled & regulated.
  
  Now satelliteradio - that's not a lifeline is it?
  
  So even if in the end there is just one big one -- whether it is is good, or bad, or cheap, or expensive -- the Consumer / Listener will judge and stay or churn -- exactly as in a movietheater or restaurant.
  
  Ciao, bedtime
  IsaacI like the idea of gov regulation however in practice it tends to fail and if its a public business type of regulation it fails harder, its kinda sad that the goverment has taken so much from the consumer so that they can not stand up and easily bring things to light, the regulation itself has made most people placid and woolie and the regulation tends to side with thos with money over the needs of the poeple then I guess things don't change over time.
  
  if you are going to regulate industry don't it ctrates a need to keep to support it when its time for it to fail and be replaced.
  
  Government can not deregulate/detach itself over these issues because of all the moeny it gets from them, I wish they would use a simplistic regulation, for cable set the plan rates and let cooperations fight it out for consuemrs at the lower rates, really they should halve land line cable prices until broadband TV is available in most of the US, sat TV is questionable as it is but cable is downright gouging....

  16.1.2008 18:05 #17

• sgriesch

  the only trouble is monoplies are made from huge mergers like tis...hopefully they wont price hike...much... LOL
  
  
  Hell they should lower rates.....If they merge, they won't be raising prices. If they did, they would finish themselves off. Both are struggling. I was one of the first 100,000 to have XM, and it definately lost its magic a long time ago. I agree with Zippy, they should lower the price. HD Radio will be the new competitor, and it is free (provided you have the eqipment to listen).

  16.1.2008 19:45 #18

• ZippyDSM

  Originally posted by sgriesch: the only trouble is monoplies are made from huge mergers like tis...hopefully they wont price hike...much... LOL
  
  
  Hell they should lower rates.....If they merge, they won't be raising prices. If they did, they would finish themselves off. Both are struggling. I was one of the first 100,000 to have XM, and it definately lost its magic a long time ago. I agree with Zippy, they should lower the price. HD Radio will be the new competitor, and it is free (provided you have the eqipment to listen).Oh I think they will hike prices its all part of the game however for the short term the prices will go up .50 - 5.00$
  
  I would surprised if prices didn't go up in the next year.

  16.1.2008 20:58 #19