Sirius, XM Jump On Report FCC’s Adelstein May Back Deal

Barron's ^ | July 18, 2008 | Eric Savitz

[ConservativeMind]

Shares of merger partners Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR) are trading higher today following reports that FCC Commissioner Jonathan Adelstein, a Democrat who had been expected to oppose the deal, has proposed terms to the company on which he would vote to approve it.

As Reuters notes, FCC Chairman Kevin Martin has proposed that the deal be approved as long as the companies agree to provide radios that receive both services, cap prices for three years, offer programming on an “a la carte” basis, and make 24 channels available for non-commercial and minority programming. Adelstein wants the companies to go further: he’s calling for a 6-year price cap, and a set-aside of 25% of channels for non-commercial and minority programming. He also wants new satellite receivers subsidized by XM and Sirius to also be capable of receiving terrestrial stations using the HD radio standard.

The companies would also have to disclose technical specs to independent radio makers, and it would be barred from passing along programming price increases to customers.

Investors appear unconcerned about the concessions; they simply want the FCC to grant approval so it can finally move forward.

SIRI today is up 14 cents, or 6.7%, to $2.24; XMSR is up 16 cents, or 1.9%, to $8.60.

[ConservativeMind]

So the Democrat in charge of the FCC (What the heck?) would approve if these companies give-away 24 channels for minority and non-commercial use, and not change pricing for 6 years?

It's Atlas Shrugged, again.

[Trajan88]

Jonathan Adelstein wanting to do a back door Fairness Doctrine.

What a pice of garbage.

[Regulator]

None Dare Call it Extortion.

[Tanniker Smith]

SIRI today is up 14 cents, or 6.7%, to $2.24; XMSR is up 16 cents, or 1.9%, to $8.60.

And both are at about 25%-33% of the stock high. (not 25-33% off, mind you)

[Chode]

Atlas Puked...