by Mike Masnick

Filed Under:
fcc, mergers, satellite radio

sirius, xm

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.

Reader Comments (rss)

(Flattened / Threaded)

  1. identicon
    Anonymous Coward, Mar 3rd, 2008 @ 10:42am

    National Association of Broadcasters who Dont Broadcast Anything I Want To Listen To. They can go to hell. Doing whatever makes them scream is fine by me.

    reply to this | link to this | view in thread ]

  2. identicon
    Chuck Norris' Enemy (deceased), Mar 3rd, 2008 @ 11:20am


    The Justice Dept. and the FCC are just waiting to see whose check clears first.

    reply to this | link to this | view in thread ]

  3. identicon
    Bill W, Mar 3rd, 2008 @ 11:35am

    Broadcasters trying to compete

    Well, in my area there are quite a few radio stations that are advertizing "HD Radio" whatever that is. I guess it's like the AM Stereo of a few years back. You need a special receiver and all.

    reply to this | link to this | view in thread ]

  4. identicon
    Anonymous Coward, Mar 3rd, 2008 @ 11:44am

    The FCC is paid off by terrestrial radio. The almighty dollar governs what they do and that's why Exxon Mobil merger was approved so quickly. Screw the public we need to line our pockets.

    reply to this | link to this | view in thread ]

  5. identicon
    Steve, Mar 3rd, 2008 @ 12:00pm


    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..

    reply to this | link to this | view in thread ]

  6. identicon
    Overcast, Mar 3rd, 2008 @ 12:05pm

    Yeah, By the over zealous concern - National Association of Broadcasters - is proving they are in direct competition with one another.

    reply to this | link to this | view in thread ]

  7. identicon
    comboman, Mar 3rd, 2008 @ 12:18pm

    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.

    reply to this | link to this | view in thread ]

  8. identicon
    Adam, Mar 3rd, 2008 @ 12:34pm

    Steve- You're blaming the legislature for something that is the Executive's fault? Last time I checked the FCC and Justice were run by the President, not Congress.

    reply to this | link to this | view in thread ]

  9. identicon
    RobG, Mar 3rd, 2008 @ 12:48pm

    Does the FCC even care what consumers think? I have XM now and I'm gonna be awfully upset if, in a post merger cost-cutting move, the merged entity cuts back on programming costs by having only one station in each genre instead of two. For example, I like XM's jazz station but Sirius' jazz station SUCKS!

    reply to this | link to this | view in thread ]

  10. identicon
    Robert, Mar 3rd, 2008 @ 1:00pm

    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.

    reply to this | link to this | view in thread ]

  11. identicon
    The Vo, Mar 3rd, 2008 @ 1:01pm

    I hope they bankrupt - dirty MF. I am still waiting for my $150 mail in rebate. No support for the MF in Sirius! I have 2 radios and the f***ers are still holding my money - already 6 months !!!!

    reply to this | link to this | view in thread ]

  12. identicon
    Heywood, Mar 3rd, 2008 @ 1:22pm


    You, sir, are an idiot and should just shut up.

    reply to this | link to this | view in thread ]

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