Sirius-XM Merger Nearly Ready for Air Time

It's been a hard battle since the controversial XM (XMSR) and Sirius (SIRI) satellite radio merger was proposed in February 2007, and now it's finally going to be approved.

This week the FCC's vote was two to two, and now we're just waiting on Commissioner Deborah Taylor Tate to vote to approve the deal.

Tate has agreed to vote for approval, but only if the companies agree to cap prices for subscriptions, agree to make radios that receive both of their signals, and set aside channels for educational and minority programming. The companies have already agreed to pay nearly $20 million to settle complaints about violations of FCC rules. And since the two companies have already basically agreed to such requirements, it seems like now it's only a matter of time.

There are still some loud voices of dissent; Commissioner Jonathan Adelstein is concerned about the merged company having too much power. He pointed out that XM-Sirius would have "more spectrum than AM and FM combined." He's obviously concerned about protecting consumers from the concentration of power. Adelstein said he'd only vote for the deal if the companies agreed to extend their price cap for six years, and allocate more channels for educational and minority programming.

But now shareholders should be celebrating--or at least sighing with relief--that the deal is fianlly getting done. Neither of the companies on their own could attract enough users to attain or sustain profitability. So the companies are also quite relieved; they were eager to get FCC approval with enough time to put new combined Sirius/XM radios on the market in time for the holiday shopping season, when these companies always get a boost. Now that they're going to be able to merge their offerings, you can bet they're hoping for a boost as consumers, relieved they don't have to make a choice.

Comments

[ralph visconti:]

GOOD FOR THEM

2008 Jul 27 06:33 AM

[ralph visconti:]

GOOD FOR THEM. WHAT TOOK SO LONG?

2008 Jul 27 06:34 AM

[TCFATBOY:]

Adlestien is a jerkoff! The merger between Exxon Mobil was given less scrutiny. Hey Adlestien how about a 6 year price cap on gas prices you self serving moron. Let me guess, when your finished at the FCC the N.A.B has a nice cushy consulting job for you right.

2008 Jul 27 07:21 AM

[Beck-o-la:]

What took so long? The Democ"Rats" were busy counting the money they got from the NAB!!!!

2008 Jul 27 07:51 AM

[huerix:]

So my choices for listening to CNBC, CNN, etc. in the car are a) sirius or b) XM... how is this not a monopoly? I agree we need interactive radios, which they already were required to do; and the 6 year price cap. By then, internet WiFi in the car will be workable.

Exxon-Mobil is irrelevant, that should not have happened either, but the Republi-Cons are all about making oil powers super-rich. This administration hasn't met a merger it didn't approve... just a need to try and stop that frightening merger of 'hippies' between Whole Foods and Wild Oats.

I love Sirius but they just spend too much money and that has nothing to do with XM. Most people whining about the process are morons who thought they could catch a quick double on SIRI.

I worry after the price cap they will try to raise prices too high and kill their business... you know, pull an eBay.

2008 Jul 27 01:16 PM

[donaldj:]

What ever happen to Monopoly?? Why don't all the big companies merge together, then we'll know where we stand.

2008 Jul 27 02:23 PM

[Mr. Stupid:]

This article is a little late don't you think.

In case you didn't keep up with the news Ms. Boorstin the merger has already been voted on and approved. This was last weeks post.

2008 Jul 27 04:33 PM

[huerix:]

The (almost) final approval was reported yesterday. Leave Ms. Boorstin and her awesome hair ALONE.

2008 Jul 27 07:25 PM

[ace22:]

yea, she is pretty sexy.

2008 Jul 27 08:08 PM

[ace22:]

even though shes a little late

2008 Jul 27 08:09 PM

[SgtSally:]

Doesn't CNBC have enough media presense? I thought Seeking Alpha was functioining as an source for alternative opinions.

2008 Jul 27 09:57 PM