Thread: Justice Department Clears Sirius Merger With XM

Justice Department Clears Sirius Merger With XM

Satellite Radio Firms Await FCC Decision on Deal
By SARAH MCBRIDE and JOHN R. WILKE

March 24, 2008 4:33
Free Preview - WSJ.com

excerpt:

The Department of Justice approved the merger of satellite radio companies Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., marking a big step forward for a long-running Wall Street cliffhanger that comes more than a year after the deal was struck.

The merger also requires approval from the Federal Communications Commission. While it is unlikely that the FCC will go against the Justice Department's ruling, it has the power to impose conditions that might make the controversial merger slightly more palatable to the groups lined up against it. A ruling from the FCC is expected in coming weeks.

Still, the hardest work could lie ahead for the two companies as they work to meet the high expectations among both subscribers and investors for a combined company that faces stiff competition from traditional broadcasters, iPods, mobile phones and other emerging ways for consumers to receive music and other programming.

The companies proposed their merger in February 2007, when it was considered extremely ambitious, largely because it was seen as creating a satellite radio monopoly that regulators would be unlikely to approve. Since then, however, the companies have argued that the satellite radio services compete not just with each other, but with all kinds of audio entertainment, starting with regular radio stations.

Now, Sirius and XM will have to prove that their merger will lead to all the benefits they outlined as they sought approval. Some will be fairly easy to implement. For example, the companies promised tiered pricing, allowing consumers who listen to just a few channels discounted rates. Currently, each service costs $12.99 a month.

But other promised changes might prove trickier. For example, Sirius and XM said their subscribers would be able to receive programming from either service, without having to purchase a new radio receiver. Currently, each service is incompatible with the other company's receivers.

Finally. every major sport in one place.

I like Howard Stern and Air America, I hope I can find them on one service now...

Well lets see how they do it, one big network and we get both services now or little change and they keep them seperate. Currently and XM suscriber and stockholder (who needs a big come back in the price).

Honestly I can't believe they aren't doing better. I can't imagine not having XM. I HATE commerical radio but even for those how like FM/AM, Sat radio has so much more to offer. It is like the difference between having broadcast or cable TV.

Originally Posted by Stinger

Honestly I can't believe they aren't doing better. I can't imagine not having XM. I HATE commerical radio but even for those how like FM/AM, Sat radio has so much more to offer. It is like the difference between having broadcast or cable TV.

I agree, I think actually having satellite radio needs to be experienced. I think a lot of people don't understand how much better it is than terrestrial radio. If they did they would get it.

I didn't get it until it was given to me, now that I have it I couldn't imagine messing with FM. Everything from sound quality to selection is above and beyond, it's an expense that's well worth it.

Are you guys shareholders or something? Stop trying to sell me something I don't need.

Originally Posted by TenGig

Are you guys shareholders or something? Stop trying to sell me something I don't need.

I'm not trying to sell anyone on satellite radio, just expressing my thoughts on what I think about it...

I think we should merge all the media into one big conglomerate and let the government regulate the hell out of it. They can come up with a catchy phrase like "Fair and Balanced" or something.

Originally Posted by michaelr

I think we should merge all the media into one big conglomerate and let the government regulate the hell out of it. They can come up with a catchy phrase like "Fair and Balanced" or something.

Are you saying this merger is a bad thing?