Cramer Still Venting on Satellite Radio Merger

Jim Cramer is definitely not any tamer. Monday he did a stump speech that lasted over 12 minutes regarding the merger (View the segment here). Cramer named names of congressmen who have accepted money from the National Association of Broadcasters. Cramer even has a calendar that states that the merger is now 7 days overdue!

Now, to be fair, members of congress accept money from political action committees and PACS all of the time. This is how the system works. No, these funds are not directly “buying” an action on the part of these politicians. However, what can a congressman expect from an organization in the future if they are not “towing the line” now? Lobby dollars are about getting consideration. If a politician does not offer that consideration, they can forget about additional lobbyist dollars in the future.

Many points Cramer makes in the piece are quite interesting. The satellite radio merger has had more hearings that the Exxon Mobil (XOM) merger as well as the Maytag merger. He also points out the fact that this merger seems to garner more attention that the war in Iraq, as well as the fact that Sirius (SIRI) and XM (XMSR) make up less than 5% of the national radio listenership.

Cramer concludes that these congressmen are not concerned with the consumer. They are instead concerned about lobby dollars.

Whether you agree with Cramer or not, it can not be denied that this merger has received far more attention than many others, and that the competitors of satellite radio have not only been very vocal, but have been helping to fund the political careers of many over decades.

How long will Cramer continue this? Likely until a decision is made.

Position - Long Sirius, Long XM

Comments

[hfstern:]

what is the nab afraid of? the boogie-man or bababooie?

2008 Feb 27 10:17 AM

[pjcruz:]

I wonder how many of the opposition to this merger are real consumers of the product. Having been a customer of XM for over five years I believe that this merger will have a positive impact on the consumer. For one thing I won't have to determine what vehicile I purchase based on which radio they install.

2008 Feb 27 01:11 PM

[scotty48:]

Thank you Cramer for bringing long overdue attention to the politics involved in this. It’s up to us to write the Congress and get involved. It’s past injustice, it’s now B.S…………

2008 Feb 27 04:00 PM

[tommye:]

The Government allowed IBM to sell its hardware division to the Chinese Lenovo without a blink. How many IBM thinkpads are in our Fortune 500 companies and why did we give the architecture away so easily. Far more damaging than the potential merger - Far less attention

2008 Feb 27 04:23 PM

[User 157999:]

It's time for investors around the world to call and flood the Department of Justice anti-trust division & The Federal Communications Commission with calls and demand this merger - Sirius and XM go through.Stand up Investors_ If you have any gut's at all and tell them {We're }not going to stand or take it anymore !Those still believing in a dream !Thankyou.!

2008 Feb 27 06:24 PM

[Denmen:]

Jim Cramer makes good points that I would like other news services pick up the ball and run with it.

2008 Feb 27 06:41 PM

[Corelockt@y...:]

Cramer is right... The crass over-zealous Rush Limbaughs don't know how to make MILLIONS of dollars on Satellite Radio, like the do in the Dumded down, IQ degenerate world of FM/A< broadcasting.... Its the Protectionists of the Political Clowns of America, or PPCA... ClearChannel can't afford SiriusXM, but they can Afford XM once it tanks... So can Rupurt, "the Facist," Murdoch.

Oh, and don't forget that there are a plethora of Democrats that are against the Merger, which they forget, is the ONLY media outlet that gives them the equal space to talk... You find any market in America where on FM or AM, Democrats have the same Radio Talk show host supporters as Republicans and I'll send you $500.

2008 Feb 28 03:51 PM

[spr0949:]

At last count there were 77 Congressmen in the pocket of the National Association of Broadcasters, lobbying the FCC to deny the merger request. There are so many other venues and avenues for audio entertainment that it boggles the mind that the FCC would dally like this. Perhaps the message we should be getting is that it is time for a reorg at the FCC.

2008 Feb 29 11:42 PM

[User 129929:]

Cramer hits the nail on the head. Anything to do with government is like time stood still and we the people pay for it.

2008 Mar 02 08:03 AM