Sirius/XM's 'Chinese Inspection': Leaving the Merger to Rot?

The Sirius (SIRI) - XM Satellite Radio (XMSR) situation reminds me of a particular scene in the film Days of Thunder in which Fred Thompson (yes the Senator) asks his two NASCAR drivers if they have ever heard of a Chinese inspection. This refers to a practice that occurs when a company attempts to import an unwanted and perishable product and the inspector will "leave the lettuce" out on the dock and inspect it when they get darned good and ready to. Of course, by the time they get around to it, the lettuce has spoiled and is worthless.

This is what has been running through my head for the last 12 months concerning the Siruis / XM merger. We witness posturing and hear phrases like "protecting the consumer" or "in the best interest of the public". Has sitting on this issue for 17 months been in the best interest of the consumer and stockholders?

Hmmmmmm...

Here are three points to consider.

1. Listeners want the merger because they get the best of both worlds all in one neat package.
2. Auto buyers want the merger because they won't have to base a part of their purchasing decision on which Satellite Radio company is attached to it. Lets face it, purchasing a car is hard enough.
3. Stock holders obviously want the merger. Enough said there.

The only people that do not want this merger are The National Association of Broadcasters and the politicians who are supported by them.

Hmmmmmmmm......

The Justice Department and The FCC are both guilty of letting the lettuce spoil. The only difference is that The Justice Department won't come out looking like the villain if the merger is declined.

Disclosure: Author holds long positions in SIRI and XMSR

 

Comments

[Disappointe...:]

To FCC;
You all should be embarrassed, and fired! You have lied and stalled enough. 180 day clock =a scam, by the end of the year=a Lie, by the end of the first quarter=another Lie, Shortly after the DOJ decision=another lie, Martin says he was having multiple drafts written months ago=lie. Now shortly and pretty shortly; but no drafts circulated in over a year and a half! Now By the second quarter again nothing…..What have they done in all that time????? DOJ has proven this is not a monopoly! Allow the licenses to be combined and stop pandering to every group out there! They have no right trying to get my Company for free, I paid for shares of my company and you have no right to give anybody anything that I own. If the minorities want more radio exposure let them go buy a radio station with their own money. This is a free country, not a socialist state. So allow the combo with no concessions other than what the companies agreed to begin with. I hope you are all investigated for this disgrace, you are going far beyond what the FCC was intended for and now you are using this unassigned power to destroy American confidence in our government, and any company you choose to destroy. Your stalling of this decision has cost me personally and many more I am sure, I hope the companies file suit for your stall tactics, the empire state building was built in less time. And both companies have now lost the Millions/ Billions due to your indecision. You have no right to cost companies so much. This is America, free market capitalism, remember? This is not a necessity it is a pay luxury service. Mr. Martin do you have a Boss that oversees you, or are you a free-bird with no one to answer to? I would like to speak to your boss because no common sense decision can take over a year to make. I don’t know of any company, employee, or anybody that can take so long to do a job and still have a job after showing this amount of incompetence. I want you and you group all fired. Here is a link to a video that shows how irrelevant you group is; www.youtube.com/watch?...
So in ending you appear to be protecting your buddies at the NAB, and pandering to any special interest group wanting something for free. How about the Americans you supposed to be protecting? By the length of time you have been taking means one thing to this American and that is you are saying FU to ME. And I want you Fired. I will be sending this to anyone that will read it, the sad thing about that is that unless it is accompanied with a check, I assume no government official will read it.

Signed; One disappointed American.

2008 Jun 29 09:42 AM

[tech man:]

the bottom line is this,someone needs to get off their duff and do their job. this 16 months is a lack of job preformance on both parties behalf. just do your jobs, and do the right thing. this has gone on for to long.people want action not inaction. concerned and frustrated.

2008 Jun 29 09:48 AM

[dr sam:]

Excellent point!!!

2008 Jun 29 10:28 AM

[Marc Gerstein:]

I'll bet the FCC would act a heck of a lot faster if Howard Stern were to return to over-the-air radio!

2008 Jun 29 11:11 AM

[ARI D K:]

Gov agencies always put a show for the public eye, but what they do behind door it's a different story. That's politics. Desicions are not made for the American people, are made for special interest.

2008 Jun 29 12:56 PM

[rbblum:]

One can only begin to fathom all the fraud, waste, abuse, deceit, and artificial economic factors that will be created with a nationalized health care system when thinking how easily the DOJ & FCC have handled the XM/SIRI merger situation.

2008 Jun 29 06:03 PM

[jimmydasaint:]

That's why I'm going to Sue their asses if this merger is declined or if it gets delayed past October 1st.

2008 Jun 29 10:03 PM