XmSiriusMerger
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FCC tentatively approves XM / Sirius merger
We basically knew the FCC was going to approve the XM / Sirius merger after the DoJ approved it earlier this year, and it looks like the communications agency is just about ready to sign off -- the Wall Street Journal is reporting that a majority of FCC commissioners are close to approving the deal. Word is that XM and Sirius will have to fork over an additional $20M to make it happen and agree to several enforcement terms, but it's all up in the air until this goes official. Let's hope that's soon -- after a historically long delay, it looks like there's finally some light at the end of the tunnel.[Warning: Read link requires subscription]
NAB attempts to delay XM / Sirius merger even further
Even though the Justice Department has approved the XM / Sirius merger and the FCC's approval is all but sure to follow, those pesky fools at NAB just won't go down without a fight -- the organization is demanding that FCC's approval be postponed until certain documents are turned over by the agency. NAB says the paperwork shows "apparent wrongdoing" by Sirius and XM officials in including FM transmitters in radios and terrestrial repeaters, and it met with FCC officials on Tuesday to make its claim. There's no word on how effective any of this is going to be, but we'll give it to NAB for being tenacious, at least -- now please, go away.
Sirius, XM reps chat up FCC, post-merger pricing detailed
With that little Department of Justice business out of their way, Sirius and XM have unsurprisingly been quick to start chatting up the all-important FCC, and a recent filing from the agency has now revealed that lawyers from the two companies have met with none other than FCC Chairman Kevin Martin himself, along with other higher-ups. Even more interesting, however, is that the same filing also includes a full rundown of the companies' proposed post-merger pricing plans, which don't appear to have changed much from those detailed way back in the early days of the merger. Starting with the basics, the Sirius and XM "Everything" plans will hang on to the same $12.95 per month price tag, and include approximately 130 and 170 channels, respectively. From there, each service has A La Carte options starting at $6.99 a month (with additional channels costing 25 cents apiece), along with the usual package options ranging in price from $9.99 for the Mostly Music and News, Sports and Talk bundles to $16.99 for the "Sirius Everything & Select XM" or "XM Everytyhing & Select Sirius" packages. Be sure to hit up the PDF available at the link below for the complete rundown.
Clear Channel wants the FCC to force XM / Sirius to obey indecency laws
Apparently Clear Channel's new motto is "if you can't beat 'em, make life suck on the other side of the merger." The broadcast giant has dropped a whole big list of requests on the FCC to impose as conditions upon XM / Sirius for a merger, not the least of which is asking for broadcast decency rules be applied to satellite radio. Clear Channel feels the competitive threat of satellite radio could be mitigated a bit if the "edgy" content (Howard Stern) ceased to make terrestrial radio's edgy stuff look weak by comparison. Of course, the big difference is that XM and Sirius are paid subscription services, and we're guessing they're going to pound the "but HBO can do it" argument for all they've got, but it seems like these days no request is out of reach for terrestrial radio: Clear Channel also wants another satellite radio competitor, 5 percent "public interest" radio, and zero local programming or local advertising.
NAB, Congress react to merger approval; XM and Sirius let haters hate, watch money pile up
Well, it's only been a couple hours since the DOJ officially approved the XM / Sirius merger, and while we're a little surprised at how low-profile the two satellite radio services are being about the decision, there's nothing at all shocking about NAB's reaction -- the organization says it's "astonished," and that the Justice Department's decision to "propose granting a monopoly" to the two companies is "breathtaking." Yeah, they're not happy. Same goes for various members of Congress: Rep. Ed Markey, head of the House telecom subcommittee, expressed his disappointment that "the Bush administration has apparently never seen a telecommunications merger it didn't like," and suggested FCC approval would have to come with strict conditions, while Sen. Herb Kohl flatly said the deal would "create a satellite radio monopoly" and encouraged the FCC to block it. That's a lot of haterade -- but XM and Sirius are apparently too busy looking deeply into each other's eyes as their respective stock prices soar, because the only post-decision statement either company has made is a rehash of a months-old list of organizations and people that support the merger. Ah, young love -- so innocent, so oblivious.Read - NAB statementRead - Bloomberg article with Congressional reactionRead - XM list of supporters
XM / Sirius merger approved!
Looks like that seemingly-desperate two month extension XM and Sirius gave each on the merger agreement paid off after all -- federal regulators have finally approved the $5B deal. The Department of Justice's Antitrust Division says that after "thorough and careful review" (we'll say -- it's been over a year), it's determined that allowing the two satellite radio companies to merge "is not likely to harm consumers." The deciding factor appeared to be the proprietary hardware needed to receive both XM and Sirius; since consumers who shell out aren't likely to switch, the DOJ doesn't think the marketplace is all that competitive to begin with, which makes the impact of a merger relatively small. In fact, the DOJ says the merger could actually benefit consumers, who might see lower prices as the result of more efficient operations, broader programming options, and faster rollouts of new technology. Of course, it's not quite all over yet -- the FCC's approval is yet to come following its own historic delay and NAB's rabble-rousing, but most analysts say the FCC will follow the Justice Department's lead and approve the merger as well. Now the big question: will consumers be able to use their existing radios to get all the stations or not? We'll let you know -- we're trying to find out all we can. Entire official DOJ statement after the break.[Thanks to everyone who sent this in]
XM and Sirius extend merger deadline, blame FCC for not understanding their love
The XM / Sirius merger soap opera never ends, does it? Although the original deal allowed for either company to walk away risk free on March 1 if government regulators didn't approve, the two companies have looked each other deeply in the eye and re-affirmed their love for each other -- for another two months. That's right, they've only extended the deadline for a whopping eight more weeks -- it's like no one at either company has noticed that this no part of this process has actually been on schedule or gone smoothly. Seriously, if we thought we could put a merger on deathwatch, we might actually do that here. Ah well, here's to young love -- too bad most of those stories end up with everyone dead, eh?
NAB trying to get Sirius / XM to surrender spectrum?
As the recent action in the 700MHz auction has shown, wireless spectrum is a valuable commodity -- which is why it looks like the NAB and Clear Channel might drop their lawsuit against the Sirius / XM merger if the two companies agree to give up a chunk of the airwaves. Industry observers close to the deal have called this the "endgame," saying that the broadcasters have been after the spectrum all along, but we're not so sure -- we'd think that the NAB would be pretty happy if Sirius and XM decided not to get hitched after all. Still, it's an interesting tactical move, if true -- let's just hope it doesn't delay a decision on this merger even longer.
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?
XM, Sirius planning new post-merger pricing options
XM and Sirius have already talked a bit about some of their post-merger pricing schemes, but it looks like that's not all they have in store, with Reuters now getting word of some additional changes coming once the deal is done. Specifically, the companies are now saying that they'll be offering a subscription package "priced 46 percent below current levels," along with an option for customers to buy packages of their favorite channels. While exact pricing is still unclear, the "a la carte" programming would apparently be available "within one year following the merger" -- whenever that actually happens.
Sirius / XM merger achieves dubious milestone
Apart from a couple snarky ads from the NAB, the XM and Sirius merger hasn't exactly been a thrill ride, and now it looks like it's going to get even more boring. The two companies filed their initial merger application with the FCC some 70 days ago, and the agency hasn't even started the 180-day merger review period yet -- making this the longest application-to-review delay in FCC history. Industry insiders are saying this might mean that a final decision won't be reached until 2008, and that's not even counting in the time it'll take the Justice Department to do an antitrust review. No word on what the holdup is, but between that service outage and a loud customer backlash in the past two weeks, XM's got some housekeeping to do in the downtime before it really has to start pitching the merger to the government.[Via OrbitCast]
Satellite CEOs aren't the only ones changing their tune
After witnessing the pair of attempts by the National Association of Broadcasters to discredit the Sirius-XM merger as a monopoly or bail-out, the folks at Orbitcast decided that "two can play" at that game, and created this clever "ad" of their own. We'll let the image do the talking.
