FCC Says No to Sirius and XM Satellite Radio Merger
January 23, 2007 1:42 PM
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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.
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RE: XM FLS
1/23/2007 2:58:52 PM
No, I believe he's talking about when you hear promotions for other XM radio programs. These are done even on the specifically stated "100% Commercial Free" channels.
For example "Check out Theme Time Radio Hour with Bob Dylan on XM40, Wednesdays at 10AM Eastern" is heard on all XM stations, and does count as advertising, imo.
RE: XM FLS
1/23/2007 3:17:27 PM
This is not what I am talking about at all.
XM has changed their slogan to "The more commercial free radio" from "100% Commercial Free Radio".
They have advertisements on their music channels. I hear ads for the discovery channel, some hair gell, and Dell on my way to school today.
RE: XM FLS
1/23/2007 3:25:29 PM
Well, I don't know about XM, but Sirius' slogan is "Commerical Free Music," not "Commercial Free Radio," so that's what confuses some people when they're listening to talk radio stations.
But I guess you said they play commericals on the music stations over there, so maybe now I do know about XM :)
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