And So We Wait Some More For XM And Sirius To Merge

from the how-long-will-it-take? dept

The Justice Department and the FCC sure are taking their sweet time on approving (or denying) the XM/Sirius merger. The two companies’ merger agreement was about to run out, so they’ve now had to extend it a few more months as they wait patiently for the government agencies to figure out whether or not satellite radio is a unique market or if it actually competes against other forms of audio entertainment. It’s hard to justify what could possibly be taking this long. Terrestrial radio stations, as represented by the National Association of Broadcasters, have been the most vocal against the merger, claiming that to allow the merger would create a monopoly in satellite radio. However, the very activity of protesting the merger suggests that they know that satellite radio isn’t an independent market and actually does compete with terrestrial radio. Still, the NAB must be thrilled it’s been able to hold off the merger approval for this long, even if it eventually does get approved. The real question, though, is whether they’ve done anything else to try to compete with satellite radio, or if they’re just hoping that the miracle of a blocked merger will simply force the satellite competition into bankruptcy.

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Companies: sirius, xm

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Comments on “And So We Wait Some More For XM And Sirius To Merge”

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Steve says:


To have so many congressional hearings over this non-issue and hold it up OBVIOUSLY just because of the NAB donated monies is an amazingly obvious example of our corrupt representatives and senators…

For the NAB to spend Four million dollars on fighting the merger, while saying that it’s because Satelite has no competition just doesn’t make any sense, and for the people taking the money not to see through it shows OBVIOUS CRIMINAL CORRUPTION.

Sorry NAB – You’re not even THIRD in my list of entertainment in the car… First is Sirius, second is my USB memory with MP3s from home, plugged into my car stereo, then comes the IPOD, then maybe a CD or two. I dont remember the last time I listened to a local radio station… too many commercials, and crappy corporate music in between. If I’m hearing an over the air radio station, it’s because I’m in a store that has one on, or the car next to me is playing theirs too loud..

comboman says:

Think about it another way

If every cable and DSL provider were to merge tomorrow and dial-up providers lobbied the government claiming the new company was monopolizing broadband internet access what would you say? Would you dismiss their concerns since they obviously are competing with those companies?

I’m not saying there’s room in the market for two profitable satellite radio services (there may not even be room for one). All I’m saying is, don’t dismiss the message because of the messenger. Anti-monopoly rules are there for a reason and are used far too infrequently in my opinion.

Robert says:

Re: Think about it another way

comboman, your argument is invalid, because holding onto dying technologies isn’t a good enough reason to lobby against new technology. The union of bicycle makers didn’t rally against the new car companies… nor would they have if there were only 2 car companies at that time thinking about a merger. Although not exactly the same, a similar situation has been seen when the **AA groups lobbied against digital media. It’s just not a fight that should be fought “by them”. Now if 200k consumers of satellite radio came out complaining about the merger, that’s a different story… and I don’t belive that the NAB is the prime consumer of satellite radio.

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