Free Republic

Congress has scheduled another hearing, for April 17, on the proposed merger between Sirius Satellite Radio and XM Satellite Radio. Like all significant mergers, this one deserves scrutiny by the antitrust and regulatory authorities. Congress legitimately has an oversight role as well. But keep a keen eye: the way in which this merger is handled will tell much about whether our government officials grasp how dramatically communications and information services markets are changing. I am concerned that the Department of Justice antitrust officials and the Federal Communications Commission regulators charged with reviewing the merger do not adopt an unduly narrow...

A study sent yesterday to the Federal Communications Commission and the Department of Justice demonstrates that the proposed merger between XM and Sirius would create a monopoly, constituting a likely violation of the antitrust laws. Conducted by one of the country's leading economists and scholars, the study lends concrete evidence and analysis to some of the most important questions that have plagued lawmakers since the merger was announced earlier this year. As lawmakers on Capitol Hill began to focus increasingly on what the relevant product market is for satellite radio and what impact this merger would have on consumers, the...

NEW YORK (Reuters) - Kevin J. Martin, the chairman of the Federal Communications Commission, has privately questioned recent congressional testimony by the architect of a proposed merger of the nation's two satellite radio companies that subscribers would both pay the same monthly rate and receive significantly more programming, The New York Times reported. As he sought to sell the proposed merger of Sirius Satellite Radio (SIRI.O: Quote, Profile, Research) and XM Satellite Radio (XMSR.O: Quote, Profile, Research) to Congress, Mel Karmazin, the chief executive of Sirius, vowed last Wednesday that prices would not be raised and that listeners would benefit...

NEW YORK (Reuters) - Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. pledged on Tuesday to work with regulators to close their proposed $4.9 billion merger by year's end, seeking to calm concerns that U.S. antitrust authorities would block the deal. Sirius Chief Executive Mel Karmazin, a seasoned dealmaker and media veteran, said the goal of the deal was not to raise consumer prices but to boost subscriber growth by combining the two satellite radio services and bringing stars like Howard Stern and Oprah Winfrey under one roof. But he acknowledged that Sirius's planned takeover of XM has...

Since the inception of satellite radio, consumers have been forced to choose between two competing networks, XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc., depending on the kind of hardware they buy. But new documents show the rival companies have designed a receiver capable of carrying both services — a development that could significantly alter the competitive landscape of the emerging industry. However, despite spending more than $5-million (U.S.) on the project, XM and Sirius have no plans to let consumers in Canada or the U.S. get their hands on the devices. Though the broadcast licences granted in...

There's been a recent obsession over mobile content, from both the mobile operators and content providers. For the most part, this obsession was due to the unsustainable success of the ringtone market. Mobile operators who were desperate for more revenue from each subscriber suddenly thought mobile content was their ticket to big money. Content companies scared silly by the internet looked at mobile phones as basically a better internet -- because it's closed. However, that makes one huge assumption: that it always remains closed -- something that anyone with a sense of tech trends should have realized wasn't going to...

In Wall Street terms, the recent “weakness” in XM Satellite Radio shares is “unwarranted,” and could actually be seen by investors as a buying opportunity. Sirius Satellite Radio has its own cheerleaders, as well, but two of the three analysts Billboard Radio Monitor surveyed think Sirius shares are worth about $5 per share, while one analyst pegs those shares to finish 2006 at $9. XM and Sirius shares each hit a 52-week low yesterday (March 14) during the trading day. For XM that low was $20.26 per share, but the stock ended at $20.50 when the market closed. Historically, and...

Sirius Satellite Radio may soon be able to claim that it is the only satcaster with 100% commercial-free music channels. An arbitration panel has ruled that XM Satellite Radio will have to introduce advertising on some of its commercial-free music channels. The ruling resolves a legal dispute with Clear Channel, who made a 1998 investment in the satcaster, gaining control over four of XM’s music channels, which now represent 2.5 percent of the satcaster's 160-channel subscription radio menu. As an early investor in XM, Clear Channel has owned the right to program four music channels, but both companies have disagreed...