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The W - Random - XM and Sirus to merge
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thecubsfan
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Since: 10.12.01
From: Aurora, IL

Since last post: 20 hours
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#1 Posted on | Instant Rating: 10.00
Well, that makes deciding between them easier (eventually)

    Originally posted by NYPost
    Satellite radio operators Sirius and XM are expected to announce their long-awaited merger today, according to a source familiar with the deal.

    The two sides were locked in negotiations over the weekend trying to hammer out a final agreement with an eye toward going public with the merger today in Washington, D.C., where XM is based, this source said.

    ...

    Gaining regulatory approval "could take up to 15 months; hence, we think any proposed deal needs to be announced by the end of March to close by mid-2008"




(starting the thread here because the last one was here.)



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Cerebus
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Since: 17.11.02

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#2 Posted on | Instant Rating: 0.97
Doesn't this make the bidding wars over talent that they've had pointless and the huge paycheck Howard Stern is getting just sad.
Roy.
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Since: 25.2.04
From: Keystone State

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#3 Posted on | Instant Rating: 4.84
    Originally posted by Cerebus
    Doesn't this make the bidding wars over talent that they've had pointless and the huge paycheck Howard Stern is getting just sad.


Sure, it might. But the Howard deal was done before Mel K took over, and I'd bet he's the catalyst that got everything rolling. This is supposed to save each company millions (if not billions) in operating costs. I'm sure they can trim down DJs and channels, and stop paying twice for content they both have (ESPN Radio, CNN, etc.).
Guru Zim
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Since: 9.12.01
From: Bay City, OR

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#4 Posted on | Instant Rating: 8.81
This will not happen. As little as a month ago the FCC brought up the fact that both operators have, as part of their licensing, the requirement that two satellite radio companies exist. It's not even questionable whether or not the FCC will approve this - it's out.

So said the FCC a month ago. Was it a low ranking guy who shouldn't have been talking? Maybe. I'd be surprised, though.

I'll find the article.




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Since: 9.12.01
From: Bay City, OR

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#5 Posted on | Instant Rating: 8.81
Here's the article from Bloomberg talking about the licenses and the FCC's opposition to a merger:

http://www.bloomberg.com/apps/news?pid=20601087&sid=alWomkStRxIg&refer=home

I don't know - it really seems like XM and Sirius are trying to put pressure on the FCC. It's going to make both of them look bad if this falls through, and I'm not sure that the FCC has changed it's mind in the last month.

(edited by Guru Zim on 19.2.07 1247)



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Since: 25.2.04
From: Keystone State

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#6 Posted on | Instant Rating: 4.84
Kevin Martin, head of the FCC, then said a day later that the rules could be changed, if somebody requested they be changed

Click Here (today.reuters.com)

StingArmy
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Since: 3.5.03
From: Georgia bred, you can tell by my Hawk jersey

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#7 Posted on | Instant Rating: 5.14
    Originally posted by Guru Zim
    This will not happen. As little as a month ago the FCC brought up the fact that both operators have, as part of their licensing, the requirement that two satellite radio companies exist. It's not even questionable whether or not the FCC will approve this - it's out.

    So said the FCC a month ago. Was it a low ranking guy who shouldn't have been talking? Maybe. I'd be surprised, though.

    I'll find the article.

I brought this up exactly a month ago in another satellite radio thread (The W). Guess things can change, though.

- StingArmy
Eddie Famous
Andouille








Since: 11.12.01
From: Catlin IL

Since last post: 243 days
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#8 Posted on | Instant Rating: 5.90

    Originally posted by Roy.
    Kevin Martin, head of the FCC, then said a day later that the rules could be changed, if somebody requested they be changed

    Click Here (today.reuters.com)




Of course the rules can be changed. Or ignored (see IBOC and interference rules).

Looks like they figured out how high their subscriber ceiling was going to be. The ads are coming! The ads are coming!



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Since: 2.1.02

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#9 Posted on | Instant Rating: 3.76
They are going to argue that they aren't the only game in town as they have to compete with digital music players, regular radio and who knows what else.

As far as rules being changed I'm sure if the right palms are greased it will end up passing just like every other huge merger these days.

The two don't have compatable equipment anyways so it will be awhile before we can even enjoy the whole lineup if a merger does happen. I kind of think satellite radio as we know it needs to be burned down and totally rebuilt with a more logical approach. Or like Eddie Famous said the ads really are coming.

Oliver
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Since: 20.6.02
From: #YEG

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#10 Posted on | Instant Rating: 4.36
NB: I'm mentioning this from a Canadian point of view; I'm not sure how government regulations work in the US. However....

Year ago, there were certain government regs that would suggest that a broadcaster couldn't have more than one TV station in a market. Same went with one radio station. However, in many markets (such as Toronto), certain broadcasting companies have been able to circumvent these regulations and set up multiple stations in these markets. Case in point: Rogers runs OMNI1 and OMNI2 on TV...and JACK FM and CHFI on the radio dial. Also, CHUM has two radio stations, and two TV stations that serve the same general area.

I guess what I'm getting at: government regs can be changed if the company (or in this case) companies can convince the CRTC (I'm guessing it's the FCC in the US, right) that the market share won't be affected and that their clients will be well served by the merger.



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Mr. Boffo
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Since: 24.3.02
From: Oshkosh, WI

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#11 Posted on | Instant Rating: 5.12
    Originally posted by Oliver
    NB: I'm mentioning this from a Canadian point of view; I'm not sure how government regulations work in the US. However....

    Year ago, there were certain government regs that would suggest that a broadcaster couldn't have more than one TV station in a market. Same went with one radio station. However, in many markets (such as Toronto), certain broadcasting companies have been able to circumvent these regulations and set up multiple stations in these markets. Case in point: Rogers runs OMNI1 and OMNI2 on TV...and JACK FM and CHFI on the radio dial. Also, CHUM has two radio stations, and two TV stations that serve the same general area.

In TV, this is apparently called a Twinstick (known as a Duopoly in the US). From the article, it looks like they've decided that companies can own more than one station in a large market (one that already has several competing stations) as long as (1) they serve different communities (hence OMNI 2 being the home for more foreign language content), and (2) the stations are operated independently from each other.

I don't see anything about radio stations having a one station per company per town limit however: the thing I read said companies were limited to no more than 3 radio stations in one market, and no more than 2 on the same band.

FCC Rules are similar, but a little more open (up to 5 radio stations per market, for example).

I agree with your major point though. "The FCC has issued a statement saying that a merger is not without its hurdles, and that they will want assurances that price, quality, and consumer choice will be protected." If they do that, then I think the FCC should allow it.

(edited by Mr. Boffo on 22.2.07 2340)



Guru Zim
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Since: 9.12.01
From: Bay City, OR

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#12 Posted on | Instant Rating: 8.81
http://www.usdoj.gov/opa/pr/2002/October/02_at_631.htm

There is history of these things being blocked.

Sat. TV competes more heavily than Sat. radio, and it was blocked.

Remember, the FCC isn't the last word on this.




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Since: 7.2.02
From: Huntington, NY

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#13 Posted on | Instant Rating: 5.85
    Originally posted by Mr. Boffo
    FCC Rules are similar, but a little more open (up to 5 radio stations per market, for example).


Those regulations ended up being utterly useless. In my town, for example, Clear Channel would enter in to management agreements with private radio owners. So while Clear Channel didn't own the station, they did determine content. By the time CC sold everything off, they handled 9 or so stations within our area.

Same with our local newspaper, which also "manages" an AM station that is owned by a friend of the newspaper's owner.



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