the only channel i really listen to is 110. with any luck it will go unnoticed and left alone.
Posted on 03/24/2008 3:15:06 PM PDT by TexasCajun
WASHINGTON (Reuters) - Sirius Satellite Radio's $4.59 billion purchase of rival XM Satellite Radio was given antitrust clearance on Monday as the Justice Department concluded consumers have many alternatives, including mobile phones and personal audio players. The deal, announced in February 2007, would combine the only two providers of satellite radio in the United States and is still being reviewed by the Federal Communications Commission.
"Competition in the marketplace generally protects consumers and I have no reason to believe that this won't happen here," Justice Department antitrust chief, Thomas Barnett, told a conference call with reporters.
The traditional radio industry, consumer groups and some U.S. lawmakers had criticized the deal as anticompetitive.
The FCC must determine whether the XM-Sirius is in the public interest, and whether to enforce its 1997 order barring either satellite radio company from acquiring the other.
A source at the FCC said FCC Chairman Kevin Martin has yet to make a proposal either approving or opposing the XM-Sirius combination, but has asked the agency's staff to draft documents for different possible outcomes.
This source said the FCC could be strongly influenced by the Justice Department accepting the satellite radio companies argument that they face stiff competition from traditional AM/FM radio, high-definition radio, MP3 players and audio delivered by mobile phones.
"I think it would be hard to go in the complete opposite direction (from the Justice Department)," said the source.
The companies have disputed the idea that the FCC's 1997 order would prohibit their merger.
Analysts expressed optimism of FCC approval, although some said the agency might impose conditions on the deal.
"We all along thought the probability was better than 50 percent that the deal would get through. Now it's past DOJ, and we feel pretty optimistic it will get through the FCC," said David Bank, an analyst with RBC Capital Markets.
The long-awaited decision sent shares of XM and Sirius sharply higher.
XM stock ended up 15.5 percent to $13.79, while Sirius closed up 8.6 percent to $3.15, both on Nasdaq. At that price for Sirius' stock, the deal, in which 4.6 shares of Sirius are to be exchanged for each XM share outstanding, is worth $4.59 billion.
Sirius and XM, which are losing money, currently charge subscribers about $13 a month for more than 100 channels of news, music, talk and sports.
The Justice Department's decision provoked immediate criticism from a key lawmaker in Congress, Senate antitrust subcommittee chairman Sen. Herb Kohl, a Wisconsin Democrat.
Kohl took the department to task for "failing to oppose numerous mergers which reduced competition in key industries, resulting in the Justice Department not bringing a single contested merger case in nearly four years."
"We urge that the FCC find the merger contrary to the public interest and exercise its authority to block it," Kohl said in a statement.
Sirius and XM said in a brief statement that they had received antitrust clearance and that their deal was still subject to FCC approval.
At least I don't have to buy a new radio!
Anyone want to buy a 3-month HD-DVD Player?
Consumers used to have two choices in satellite radio and now they have none. So much for anti-trust.
If this merger isn’t approved by the powers that be, one of these companies wouldn’t make it anyway (XM) allegedly.
So you’d still only have one choice.
XM is a much cooler name than “let’s get Sirius”. Three letters more terse to boot.
I just hope they don’t mess with the channel lineup TOO much. I prefer the existing XM lineup over the Sirius channels. I’m sure they’ll make some changes, though, hopefully for the better.
Actually there is one thing they could change: Give me a ‘60s channel that is devoid of ultra-cheesy, motor-mouth DJs and stupid crap like “Chickenman” (don’t ask) and that just plays the music without lamely trying to emulate an old ‘60s AM radio station. Then really dig into both the popular and the obscure in ‘60s music. And ease up on the corny junk like Bobby Goldsboro! Play some REAL ‘60s music.
I've got a lot tied up in XM so anything that keeps things where I can use my equipment is ok with me.
So I can get baseball and football on the same radio now?
This is good because there is a chance merged they can survive.
You didn’t want Howard Stern and programming compromised to pay for his contract. “Zo, Ve are goingst to make you listen to Howard”
Choice, by definition, requires more than one option
Yet, XM programs their channels heavily towards a young audience. There are tons of top 40 and hip-hop channels, but only the 6 decades channels for older people. This makes no sense.
I'm sure satellite radio skews heavily toward a more rural audience for the obvious reason that people in big cities can already pick up a hundred channels for free. Yet, XM seems to program more for an urban audience than for a hillbilly audience. It just doesn't make sense.
I'm with you on the chickenman comment.
Well, I agree that there are too many “urban” channels, but there is really quite a bit more than just the six decades channels for older folks. (Guess it depends on how old we’re talking about, but still.) Of the decades stations, I really only listen to the ‘60s station once in a while. Otherwise, it’s stuff like Fred, The Village, the Real Jazz and Frank Sinatra stations, Deep tracks, XMX, lots of other stuff that I doubt the young crowd would go for.
Might want to hold onto it. They supposedly do a better job of 'up-res'ing SD discs to HD than Blu-Ray players do.
“one of these companies wouldn’t make it anyway (XM) allegedly”
Key word, “allegedly”
They have to claim that for legal purposes. It’s probably untrue.
What this means is higher rates for all. Probably, at first, won’t raise rates directly, but by repackaging subscriptions in tricky ways.
Can’t really stand Howard and the beauty of XM or Sirius is the variety of talk.
I love the Comedy Channel(the clean one), and Old Time Radio on XM. I sure hope that stays.
the only channel i really listen to is 110. with any luck it will go unnoticed and left alone.
> Consumers used to have two choices in satellite
> radio and now they have none.
Not so.
We still have “none of the above”
and bland junk plus objectionable junk.
Out new truck came with a free 3mo XM.
Almost never listened. Let it expire.
Had no content that was compelling.
Had much content that was repelling (”Progressive talk”),
and no a’la carte to prevent any money
from going left.
Choices also include: AM, FM, internet
Old Time Radio on XM was a real surprise to me. I never thought I would enjoy listening to the old radio shows but some of them are great. I especially like the Sci Fi, great writers and the sound effects are pretty funny.
For those of you who are not familiar with the two services (I was an early adopter, Jan. 2002) XM's play list is much deeper. Sirius just plays the hits. My wife prefers Sirius for that reason. It will be very interesting to see which service's channel survive. I am afraid Sirius will prevail because Mel Karmazin is in charge.
As to who listens it's interesting. When satellite radio launched they expected listenership to skew younger. It didn't. In many respects it's because we boomers are disregarded on terrestrial radio. "Oldies" formats are being cut out or they go to 70's and 80's. Those Oldies stations that survive play about 500 songs total. They suck. FYI, the most listened to channel on XM is the 70's channel. Boomers also want their news and talk, especially FOX News, in the car! As others have said, had this not been approved, it may have been the end of the two services. They needed this to survive. I have mixed feelings about the merger. However, it's for the best. BTW, the merger is a sports fan's dream. Now you get everything for the $12.99 a mo. fee with no new equipment necessary. I LOVE MLB on XM! I never cease to get a thrill listening to any MLB game in my car. Any of you going to watch or listen to the season opener from Japan? 5AM start here in Central Timezone.
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