SiriusXmMerger
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Sirius acquires XM, forms Sirius XM Radio, pop the cork: it's done
So, it's done: Sirius has completed its acquisition of XM, forming Sirius XM Radio with more than 18.5 million subscribers, making it the second-largest radio business in the US. The new company, headquartered in New York, expects to save about $400 million in 2009 while earning $300 million. If you're a drooling investor, don't go charging up to the champagne room just yet -- analysts are pointing out that neither company has ever posted a profit, and losses are in the billions. Anyway, can we move on to all the new, shiny Sirius XM receivers now, please?
Analyst says XM / Sirius merger won't be affected by Congressional letter
It looks like a recent letter from two members of the House of Representatives Judiciary Committee to Attorney General Michael Mukasey won't be enough to derail the seemingly inevitable XM / Sirius merger, at least according to one of those ever-present analysts. As OrbitCast reports, Representatives John Conyers and Steve Chabot had complained that Justice Department staff "may be trying to rush through the merger" before the Attorney General himself had time to fully participate, and that "Assistant Attorney General for Antitrust Thomas O. Barnett may intend to grant the merger over the objections of department staff." According to the AP, however, Stifel, Nicolaus & Co. analyst Blair Levin says that while the final outcome is indeed a "close call," he believes that "the department will give its blessing," paving the way for the FCC to give its go-ahead.[Via OrbitCast]
Jesse Jackson speaks out against the Sirius / XM merger
The proposed Sirius / XM merger has always ruffled a few feathers at the NAB (and the NAB has certainly ruffled back), but it's another thing entirely when a national political figure like Jesse Jackson comes out opposed to the deal. Jackson, who spoke at the FCC hearings on the merger yesterday, said that allowing Sirius and XM to combine would essentially create a monopoly in the satellite radio market, eliminating the potential for diverse ownership and possibly squelching minority voices on the dial. Control of the media has always been a hot-button issue for activists of all stripes, and we can certainly see why Jackson would oppose such a merger on those grounds, but another organizations with a similar agenda, the NAACP, has actually issued statements supporting the merger, saying that combined, XM / Sirius would ""strengthen its commitment to diversity." It's obviously a thorny issue with a lot of viewpoints, so please -- let's keep the comments civil, shall we?
