XM and Sirius Merging?

[MoobyTheGoldenCalf]

Searched and didn't see this one posted yet....

http://www.msnbc.msn.com/id/6870266/

Sirius, XM have held merger talks
Report: Satellite-radio discussions seen as preliminary

Updated: 9:01 a.m. ET Jan. 26, 2005NEW YORK - Executives of satellite radio rivals Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. have been meeting lately to discuss the possibility of a merger, the New York Post reported on Wednesday, citing several sources close to the matter.

The newspaper said the talks have not advanced far and executives have not yet discussed price, but have been weighing any potential antitrust concerns that would arise from a deal.

The two companies have talked in the past about merging, according to the article, but the discussions never got to an advanced stage.

The newspaper said a deal could be at least a year away.

Sirius spokesman Jim Collins said the company does not comment on rumors. Officials at XM Satellite were not immediately available to comment.

Sirius executives have in the past said that they believe the Federal Communciations Commission would take issue with such a deal. The two companies now operate under separate FCC licenses.

 

[vi edit]

Uhhhhh that would suck.

Badly.

 

[NakaNaka]

Government would definitely get involved.

 

[Ime]

Originally posted by: vi_edit
Uhhhhh that would suck.

Badly.

No sh!t.

Can you say "monopoly"? Higher Prices? Fewer Stations?

 

[InlineFive]

I wouldn't worry about it. Soon Microsoft will come along and launch their own service with rock-bottom prices which will drive the competitors into the dust.

 

[imported_digitalelegance]

I doubt it. There's no way the FCC would allow that.
They ought to be focusing on tuners that let you get both XM and Sirius on one box, maybe co-subsiding the cost of producing them...

 

[Thegonagle]

I hope not.

 

[torpid]

What does the FCC have to do with it?

I personally think it would be great for the first several years. Whatever they can do to increase the popularity and thus budget of satellite radio is good. It also will likely yield more repeaters in cities and better units. Eventually it will probably turn into the next clear channel fiasco but for a while it would be good.

 

[K1052]

Originally posted by: torpid
What does the FCC have to do with it?

I personally think it would be great for the first several years. Whatever they can do to increase the popularity and thus budget of satellite radio is good. It also will likely yield more repeaters in cities and better units. Eventually it will probably turn into the next clear channel fiasco but for a while it would be good.

There will be antitrust issues that would be the concern of the DOJ.

 

[vi edit]

Originally posted by: digitalelegance
I doubt it. There's no way the FCC would allow that.
They ought to be focusing on tuners that let you get both XM and Sirius on one box, maybe co-subsiding the cost of producing them...

You mean the SEC? They are the ones who look over mergers and give a yay or nay.

 

[K1052]

Originally posted by: vi_edit

Originally posted by: digitalelegance
I doubt it. There's no way the FCC would allow that.
They ought to be focusing on tuners that let you get both XM and Sirius on one box, maybe co-subsiding the cost of producing them...

You mean the SEC? They are the ones who look over mergers and give a yay or nay.

IIRC, the SEC only approves the mechanics of the merger.

 

[aircooled]

I'd love to have the combined programming.

 

[Modeps]

Apparently the rumour holds little water. I'm new to the stock market... what would a merger do to people who hold stock in Sirius or XM?

 

[torpid]

Originally posted by: K1052

Originally posted by: vi_edit

Originally posted by: digitalelegance
I doubt it. There's no way the FCC would allow that.
They ought to be focusing on tuners that let you get both XM and Sirius on one box, maybe co-subsiding the cost of producing them...

You mean the SEC? They are the ones who look over mergers and give a yay or nay.

IIRC, the SEC only approves the mechanics of the merger.

And what does the FCC have to do with it? Do you mean the FTC?

 

[torpid]

Originally posted by: Modeps
Apparently the rumour holds little water. I'm new to the stock market... what would a merger do to people who hold stock in Sirius or XM?

Depends on the deal. Sometimes you trade 2 sirius for 1 xm+sirius, for example.

 

[nakedfrog]

What I want to know is why they don't make the receivers free after rebate, since they'll be getting a monthly fee from you anyway... make it similar to the cell phone deals, where you have to keep service for X months in order to be eligible.
I don't have either one, but it strikes me as something that can only be bad for the consumer.

 

[rky60]

Originally posted by: aircooled
I'd love to have the combined programming.

 

[NakaNaka]

Originally posted by: nakedfrog
What I want to know is why they don't make the receivers free after rebate, since they'll be getting a monthly fee from you anyway... make it similar to the cell phone deals, where you have to keep service for X months in order to be eligible.
I don't have either one, but it strikes me as something that can only be bad for the consumer.

They don't do it yet because right now there are only two competitors. If a bunch of companies got in the market, they would probably make the recievers free after rebate. As it is, they are coming down in price.

 

[K1052]

Originally posted by: torpid

Originally posted by: K1052

Originally posted by: vi_edit

Originally posted by: digitalelegance
I doubt it. There's no way the FCC would allow that.
They ought to be focusing on tuners that let you get both XM and Sirius on one box, maybe co-subsiding the cost of producing them...

You mean the SEC? They are the ones who look over mergers and give a yay or nay.

IIRC, the SEC only approves the mechanics of the merger.

And what does the FCC have to do with it? Do you mean the FTC?

The FCC dosen't have anything to do with it aside from the technical considerations, though the traditional broadcasters are trying hard to change that. The FTC's antitrust powers parallel some of the DOJ's.

Snipped from the FTC website:

Q: When I read about mergers, price-fixing, or other competition issues in the newspaper, sometimes it?s the FTC that?s in charge and sometimes it?s the Justice Department. Who decides which agency has responsibility and why?

A: With certain exceptions, the two agencies have antitrust jurisdiction in most industries. To avoid duplicating efforts, they consult before opening an investigation. Over the years, the agencies have developed expertise in particular industries or markets. For example, the FTC devotes most of its antitrust resources to segments of the economy where consumer spending is high: health care, pharmaceuticals, other professional services, food, energy, and certain high-tech industries like computer technology, video programming and cable television. The FTC also is involved in preserving competition in defense industries, to save taxpayer dollars on acquisitions costs.

Some anticompetitive practices -- such as hard-core price fixing -- are prosecuted as criminal violations under the Sherman Act. That?s handled by the Justice Department because it is a function of the Executive Branch of the government. The Justice Department also has sole antitrust jurisdiction over certain matters that are subject to special industry regulation by other agencies, such as the telephone industry and other telecommunications matters, railroads and airlines.

Finally, only the FTC can challenge certain practices that are beyond the reach of the other antitrust laws -- practices that "violate the spirit" but not the exact letter of the other laws.

That is why I think the DOJ would have to give the nod for this to go ahead. There isn't enough money at stake yet and the FFC might become further involved in regulating the industry as time goes on.



Edited to clarify.

 

[Linux23]

I welcome the merger and look forward to seeing one day XM-Sirius receivers being produced.

 

[NikPreviousAcct]

They wouldn't be merging at all. XM would be buying out Sirius and controling content while taking the profits.

 

[Juice Box]

Im just waiting for "google sateleitte Radio" just wait.... soon Google will own everything

 

[Pantoot]

Originally posted by: Nik
They wouldn't be merging at all. XM would be buying out Sirius and controling content while taking the profits.

How would XM buy Sirius?

 

[Rallispec]

looks like they updated the article to reflect the fact hat it never was true, and will never happen.

 

[imthebadguy]

i think that this would be good as useres will be able to enjo content from both providers