Saturday, June 02, 2007

More Opposition from Congress

Senator Herb Kohl, Chairman, Sub-committee on Anti-Trust, Competition Policy, and Consumer Rights, has registered his opposition for the merger between XM and Siriusvto FCC Chairman Martin and the Assitant Attorney General, Anti-trust Divion, Barnett.

Representative Nancy Boyda, Kansas, also opposed the merger expressing her alarm over what it could do to local radio. She also used the same smear tactic as NAB regarding the repeaters.

We pronounce this merger DOA.

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4 comments:

MUSCLE13 said...

DOA?? Is that your opinion Bert? Thats funny. The Department of Justice lawyers will decide on this. The question is the competive field. Congressional opinions most likely mean close to nothing. The competive landscape means everything.

I am very optimistic this merger will go through with conditions.

Anonymous said...

NAB agenda or not, the merger was a bad Idea spawned from the feeble mind of Jim Cramer and spouted by the Sirius investors.

The Merger will not go through and IMO it was never met to go through. Its main objective was to expose all the coruption as well as ocupy eveyones minds till sustainable CFBE is accheived by both XM and Sirius.

Bert said...

Muscle,

The DOJ and FCC will indeed decide this, but there is a lot of political pressure against it. The FCC will give it a fair review, but it is easier for them to deny than to buck congress. In the end, I suspect the FCC will not deny it, just make it so difficult or delay it so long that it is effectively denied, much like what they did with the DirecTv/Echostar. NAB is especially effective in manipulating the FCC, using its delay tactics. I know little about how the DOJ may react, other than how it viewed the DirecTV/Echostar merger.

While many of the politicians are simply parroting the NAB (they have to earn their kept), many of their points are valid. The relevant market is key, but even if XM and Sirius get a favorable ruling, as I suspect they will, it is still an uphill battle. Many of the claimed benefits, such as tiered pricing, can be acheived without a merger. Many of the other benefits, such as additional programming, are so far off that they are irrelevant.

If they had used the failing company doctrine, the merger might have had a chance. At the rate that XM's customer service is going downhill, it might be an opportunity in the future.

Anonymous said...

If the merger does go through then there will more than likely be conditions.. And in the form of regulations imposed by the F.C.C. and the DOJ as well as the NAB, and that will mean that XM/Sirius Sirius/XM will be merely the same as regular radio, only heard coast to coast.. The truth is that might be viewed by those who currently don't have satelitte radio as a plus.. But for those who have had the service for a few years now it would be viewed as going the wrong direction.. Be unique, be original..