Could politics be holding up the XM-Sirius merger, now 450 days later?
- June 13th, 2008
- 8 Comments
“But if the FCC will no longer approve mergers without Congressional blessing, why does it even need to exist?” So asks the Wall Street Journal, and so ask the good boys and girls—shareholders—who are tired of this charade.
The Wall Street Journal wondered aloud yesterday just why it has taken 450 days since the merger was first proposed for it to given the thumbs up or down. The Iran hostage crisis, where lives were at stake, was wrapped up in less time.
Like, if the Justice Department has already decided that there’s nothing wrong with the merger, just what is taking the FCC so long?
Oh, you know, politics. Apparently the FCC chairman, Kevin Martin, is looking for political cover, and has asked both XM and Sirius to find support on Capitol Hill.
What?! But… it’s already been given the OK by Justice, why do they need political cover?
Never mind the $4 billion in limbo, investment in both companies currently frozen in its tracks.
Basically, the FCC is run by people with zero political courage. Big surprise.
thebonafortuna (Who am I?)
2 months ago
Holding out for some kind of giant bribe? They saw the money Sirius gave Howard, got furious (they hate Howard), and now they want some of his money.
Sarcasm aside, I have no idea. I love Sirius, not so big on XM but want the platform to survive. They can either have one company in the satellite radio space thriving, or they can have none and the space can die. As it most likely will without the merger.
So to me, they’re weighing the following:
Satellite radio = Sirius + XM
XM + Sirius = XiriuM
XiriuM = Taxes + Jobs
XiriuM = Monopoly
Monopoly = Bad < Taxes + Jobs = Good
Profit?
They should just come out and say f*ck the FCC, we’re merging. They had their chance and blew it. Our business is dying while they take their sweet ass time, the speculation isn’t helping anyone and definitely not inspiring investments in our stock. Its had more than a reasonable amount of time to move on this, and at this point the government is effectively hampering our business.
Ben (Who am I?)
2 months ago
Can they do that? Just merge without the FCC saying its okay? Because if the can, then yeah, F the FCC!
Joe Ranft (Who am I?)
2 months ago
This delay is killing the two stocks as well. Both are down 30% or so, after considerable runups.
Robert (Who am I?)
2 months ago
I’m pretty sick of waiting. I waited for over a year to buy a new car cause the factory install is XM and I love Sirius. I finally bought the car I wanted last month and put an aftermarket stereo in just so I could still get my Sirius channels.
Those pr!cks at the FCC and on capitol hill are all playing to the lobbyist’s and not the public. Just because there are entities like NAB who don’t want their 20 minutes of commerials per hour to be bypassed the are investing lots of lobbyist monies to get the goverment to stop satcasters.
Pretty tired of politics as usual screwing with what the public actually wants and letting whoever throws them the most money decide what is good for us…
Plowboy (Who am I?)
2 months ago
DO NOT let off next week. Call your Senators, White House and Reps. (Don’t bother calling the FCC) Demand, as I did today, an answer.
Once this is done we need to ask… why is TERRAD not paying royalties as satrad does? …I think it’s time for the NAB to be good citizens and pony up.
Plowboy (Who am I?)
2 months ago
PS… Orbitcast feels that Martin wishes to run for Congress when he gets the boot. This issue could have been done in January. Don’t forget this issue and dog Martin’s worthless ass until the day he dies.
Katchoo (Who am I?)
2 months ago
Whenever this merger does go through I’ll buy one of their portable receivers. Until then no money from me.
jessedylan (Who am I?)
2 months ago
The FCC needs to step out of the way and let Free Enterprise run its course. I know that the NAB is crying like a stuck pig, but how about terrestrial radio actually adapting, evolving, or innovating?
I wrote my own attorney general about this very issue, after he wrote a letter to the FCC urging them not to approve the merger. I encourage everyone else to do the same, to their representatives and anyone else who will listen. You can read my letter here: http://mooreover.com/blog/?p=497