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: Didn't they *create* the market?
1/24/2007 3:46:54 PM
The monopoly play here by the FCC is just pandering to the major radio ownership groups. It does not pass the "reasonable man" test and the FCC knows it. Should Apple be cited for monopoly status in the MP3 industry? No mention of monopoly status whenever giant oil / gas companies want to merge....its just regular old free market economics then.......
The FCC is growing increasingly irrelevant with nonsense like this. The major radio ownership groups could easily step in and invest in stock equity in either XM or Sirius, if XM (they did with Clear Channel) or Sirius would let them or as normal arbitrage type investors.....and would the FCC step in then? Not likely that I can see.
I'm quite sure that the FCC would lose a court case in this matter. They remain hung up on a few points over satellite and one of which is clearly and bizarrely, Howard Stern. It seems that they cant live with the guy no matter where he is, and neither can the radio groups. Its just sad.
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
LinkNYC Terminals to Blanket New York City With Free WiFi, Free Calls, and Ads
November 17, 2014, 6:50 PM
Microsoft is Open-Sourcing Most of .NET, Adding OS X and Linux Support
November 12, 2014, 8:27 PM
Home Depot Lost 53 Million Emails, Blames Windows, Buys Execs New Macs
November 9, 2014, 5:00 PM
Former NSA Lawyer: If Google, Apple Encrypt User Data, They’ll Wither on the Vine Like Blackberry
November 6, 2014, 12:15 PM
Report: AT&T Eyeing $40B DirecTV Purchase
May 1, 2014, 8:00 AM
WebOS Class Action Settlement Costs HP $57 Million
April 1, 2014, 10:22 AM
Most Popular Articles
Modern Glass (Windows 7 Aero Glass + Modern UI) Style is Coming to Windows 10
February 19, 2015, 1:05 PM
Amid Tight Race w/ Evernote, Microsoft's OneNote Goes (Even More) Free, Adds Fresh Features
February 23, 2015, 11:15 AM
Quick Note: Microsoft Gives Dropbox Users Extra 100 GB of Free OneDrive Storage
February 20, 2015, 9:48 AM
EDITORIAL: Board Wants to Anoint America World Police w/ Global Warrant Power
February 20, 2015, 9:10 AM
NVIDIA Bows to Outraged Overclockers, Will Restore Feature in Upcoming Driver
February 23, 2015, 12:30 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information