FCC Says No to Sirius and XM Satellite Radio Merger
January 23, 2007 1:42 PM
comment(s) - last by
A monopoly in satellite radio is a big no says FCC
According to several reports, FCC chairman Kevin Martin said that it is
very unlikely the FCC will allow Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. to merge
. Both companies represent the two leading satellite radio entities currently in business in the U.S. and unfortunately, a merger in the eyes of the FCC is an obvious road to anti-competitive grounds.
Both Sirius and XM have been battling it out for the last several years, and in 2006 both companies saw their revenues drop as well as subscriber numbers drop. This peaked a notion in the industry that it was very possible that the two companies were in negotiations to go through a merger.
Share prices from both companies had dropped significantly in 2006, with Sirius shares dropping roughly 38-percent and XM shares dropping a whopping 46-percent of their value. Despite the shares dropping, the two companies continue to operate on speculation of a merger, which was also fueled by remarks made by XM CEO Mel Karmazin and chairman Gary Parsons. With their remarks, shares of both companies jumped last month but have since declined.
It is very unlikely, less than 50-percent chance, that Sirius and XM will receive FCC approval for merger, according to Martin. Even so, both companies will have to pass anti-trust regulations and audits. "There is a prohibition on one entity owning both of these businesses," said Martin.
This article is over a month old, voting and posting comments is disabled
RE: XM FLS
1/23/2007 11:36:40 PM
Sirius is gaining a ton of customers and if anyone is "hurting" it is XM. Within 6 months to a year at most I can pretty much guarantee XM will be number 2 behind Sirius. Then watch what happens to the price of Sirius stock. I am getting my bonus in March and I am dumping the whole thing into Sirius stock. I hear the numbers frequently of how Sirius is doing vs XM on the Stern show. Howard is counting down the days till they take the lead over. He is so sick of people saying Sirius is a failure because they only went from 600,000 to 6 million in one year. They also went from being outsold 3 to 1 to being the one who is outselling XM by that same margin. This is even more impressive because they have barely any advertising and what they do have is not very good. I walk into a bunch of stores and the XM system is hooked up but the Sirius is not. Imagine what would happen if they really got it together.
RE: XM FLS
1/24/2007 9:19:41 AM
I am getting my bonus in March and I am dumping the whole thing into Sirius stock.
Ok, this is a really bad idea. You're source for info is a completely biased, and if you are wrong, you are really hurting. Remember the stock price isn't about how the company is doing, it's about how it's doing compared to expectations and even then the corralation is loose at best. By all means, put some in sirius, but invest in some other things as well to help balance your risk.
"Game reviewers fought each other to write the most glowing coverage possible for the powerhouse Sony, MS systems. Reviewers flipped coins to see who would review the Nintendo Wii. The losers got stuck with the job." -- Andy Marken
WebOS Class Action Settlement Costs HP $57 Million
April 1, 2014, 10:22 AM
IBM Workers Strike Over Terms of Deal That Will Have Them Working for Lenovo
March 6, 2014, 9:29 AM
Google Picking Up Artificial Intelligence Company "DeepMind" for $400 Million
January 27, 2014, 9:25 AM
Quick Note: Qualcomm Grabs up Palm, IPAQ, and Bitfone Patent Portfolio from HP
January 24, 2014, 9:18 AM
Verizon Buys Intel Media OnCue Cloud TV assets
January 21, 2014, 10:26 AM
Google's First Asian Data Centers Now Operational
December 11, 2013, 8:50 AM
Most Popular Articles
A Bug's Life: Female Cave Bugs Have Penises, Penetrate Males for Three Days
April 17, 2014, 7:20 PM
HTC Hires Former Samsung Marketing Chief Who Developed "Galaxy" Brand
April 18, 2014, 6:00 PM
NASA Finds "Habitable Zone" Planet Sized Similar to Earth
April 18, 2014, 3:13 PM
Dotcom Bomb: U.S. Case Against Megaupload is Crumbling
April 22, 2014, 6:00 PM
Thanks to Government Crackdown, Chinese "Porn Cop" Has Watched 600K Adult Videos
April 21, 2014, 12:00 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information