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Guest Message by DevFuse

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XM-Sirius Merger down to 1 vote


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36 replies to this topic

#1 OFFLINE   Pete K.

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Posted 23 July 2008 - 10:27 AM

Rapid City's pride and joy, Jonathan Adelstein has withdrawn his "generous" conditions and voted no on the XM-Sirius merger. That leaves Deborah Tate as the lynchpin.

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#2 OFFLINE   syphix

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Posted 23 July 2008 - 10:44 AM

Orbitcast has an interesting point...

Interestingly, Adelstein may have hinted towards the direction that Commissioner Tate is leaning, when he released this statement today:

"...it appears they're going to get a monopoly with window dressing."

Adelstein seems to be speaking as if approval is inevitable.

Hmmm.....
Nathan
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#3 OFFLINE   tcusta00

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Posted 23 July 2008 - 10:47 AM

Orbitcast has an interesting point...

Hmmm.....


Kind of a lame line: "A monopoly with window dressing." What's that supposed to mean? :confused:

#4 OFFLINE   syphix

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Posted 23 July 2008 - 11:11 AM

More fuel to the rumor mill fire...
http://www.reuters.c...341638620080723

FCC Chairman Kevin Martin is near an agreement to get the support of fellow Republican commissioner Deborah Taylor Tate, which would give him the three votes needed for approval of the deal on the five-member commission...


Nathan
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#5 OFFLINE   syphix

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Posted 23 July 2008 - 01:30 PM

"Tentative deal" made:
http://www.cnbc.com/id/25819198

The Federal Communications Commission is close to giving a green light to Sirius Satellite Radio's proposed takeover of acquisition of XM Satellite Radio, the Wall Street Journal reported Wednesday.

With two Democratic FCC commissioners opposed to the deal and two Republican commissioners in favor, the fifth vote from previously undecided Republican Deborah Taylor Tate appears set to go in favor of the merger, the newspaper said.

The vote could come as early as today. The two companies will pay about $20 million in fines in order to get the approval, the Journal said.


Nathan
setup:
- 50" Plasma 1080p HDTV (Samsung PN50A760), 46" LCD 1080p HDTV (Samsung LN-T4665F), 32" LCD 720p HDTV (Insignia). 1 Hopper, 2 Joeys.

#6 OFFLINE   Stewpidity

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Posted 23 July 2008 - 01:57 PM

I cannot believe this has taken this long...pure bureaucratic BS...

#7 OFFLINE   Pete K.

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Posted 23 July 2008 - 02:14 PM

The deal is done, or so says the WSJ. Only 491 days but heck who's counting?

#8 OFFLINE   cforrest

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Posted 23 July 2008 - 02:48 PM

http://online.wsj.co...0281477651.html Subscription may be required, below is an excerpt of the article.

FCC Reaches Tentative Deal
To Approve XM-Sirius Merger

By AMY SCHATZ
July 23, 2008 4:14 p.m.

A tentative deal has been reached by a majority of commissioners at the Federal Communications Commission to approve the merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., a FCC source close to the review said Wednesday.

Republican commissioner Deborah Taylor Tate is the only FCC member left to vote on the deal and she is expected to do so shortly, two FCC officials close to the negotiations said. She is expected to sign off on the deal in exchange for a consent decree that resolves several enforcement issues involving the satellite radio companies and a combined fine of about $20 million, an FCC source close to the deal said.

Ms. Tate has also asked for a variety of other minor conditions, an FCC source said. An adviser to Ms. Tate did not respond to a call for comment. Exact details about the deal are not known since FCC officials and lawyers for the companies appear to still be working them out.

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#9 OFFLINE   djlong

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Posted 23 July 2008 - 03:20 PM

FCC: "You're both losing money and want to merge to try to survive. In exchange for having followed all the rules, we're going to make you lose another $20M in order to get what you want - and we're going to call it a fine because 'blackmail' or 'extortion' or 'bribery' sounds so icky."

#10 OFFLINE   Tom Robertson

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Posted 23 July 2008 - 03:49 PM

My only thought about the fine is that they both were to produce receivers that could be used on both systems and did not. Perhaps there were a few other things they were supposed to do (or not do?)

Cheers,
Tom

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My real treasures: 5 Grandchildren - S, D, M, M, C ; Now 5! Great-Grandtibbers - B, H, J, A, and M (Born 7/31/2011)


#11 OFFLINE   deadrody

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Posted 23 July 2008 - 04:19 PM

My only thought about the fine is that they both were to produce receivers that could be used on both systems and did not. Perhaps there were a few other things they were supposed to do (or not do?)

Cheers,
Tom

They would make their radios interoperable IF they were allowed to merge, not before. Why on earth would two competing companies make their equipment work together ?

No, the $20 M is ludicrous. This proceeding has allegedly taken this long to "protect consumers" and then they slap a huge fine on them that they will just pass along to their customers. BRILLIANT!!!

#12 OFFLINE   bigbenny13

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Posted 23 July 2008 - 04:35 PM

This whole saga makes me feel like my head could explode. The Justice department takes 13 months and says no monopoly. Then the FCC tries to put unprecedented moronic stipulations like giving up 25% of its bandwidth to competitors, forcing HDradio tuners into sat tuners, a 20 million dollar fine for doing nothing wrong(huh!), and a bunch of other anti-competitive stipulations. The NAB were clearly trying to delay this deal so that the sat companies would be dead or crippled if it ever did get approved. I hope the new company sues the crap out of the FCC and NAB for ant-competitive, hostile business practices, bribing elected officials, anything so that bureaucrats get there comeuppance.:mad:

#13 OFFLINE   harsh

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Posted 23 July 2008 - 04:50 PM

They would make their radios interoperable IF they were allowed to merge, not before.

Receiver interoperability is part of the conditions of a Digital Audio Radio Service (DARS) license and has been from the beginning. FCC rules state that each and every DARS operator must “certify that its satellite DARS system include a receiver that will permit end users to access all licensed satellite DARS systems that are operational or under construction.”

When someone pressed the issue, Sirius and XM got together and on October 6, 2000, filed a joint submission with the FCC that they were working on a solution. I think that's pretty much where it died.

Now that the merger appears to be a done deal, the losers in the battle (Clear Channel et al) want their pound of flesh.

#14 OFFLINE   harsh

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Posted 23 July 2008 - 04:52 PM

I cannot believe this has taken this long...pure bureaucratic BS...

Make no mistake: this is politics at its peak of ripeness.

#15 OFFLINE   Tom Robertson

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Posted 23 July 2008 - 04:56 PM

They would make their radios interoperable IF they were allowed to merge, not before. Why on earth would two competing companies make their equipment work together ?

No, the $20 M is ludicrous. This proceeding has allegedly taken this long to "protect consumers" and then they slap a huge fine on them that they will just pass along to their customers. BRILLIANT!!!


As harsh said, they would because they were required to by law.

Perhaps some of why they both are on hard times is general consumer electronics manufacturers couldn't make standard AV equipment and car radios that supported both.

Harsh, thanks for the details. I knew they were required, but not the specifics.

Cheers,
Tom

Go Packers!

My real treasures: 5 Grandchildren - S, D, M, M, C ; Now 5! Great-Grandtibbers - B, H, J, A, and M (Born 7/31/2011)


#16 OFFLINE   syphix

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Posted 23 July 2008 - 04:57 PM

First, Jim Cramer's take:
http://www.cnbc.com/id/25818037

Second, this $20M fine is 36 TIMES the fine that CBS got for showing a boob on primetime TV (which, yes, got overturned in courts...something I agree with). Which seemed to upset more people and do more "harm" than XM/SIRIUS' violations. Doesn't that seem a bit excessive??
Nathan
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- 50" Plasma 1080p HDTV (Samsung PN50A760), 46" LCD 1080p HDTV (Samsung LN-T4665F), 32" LCD 720p HDTV (Insignia). 1 Hopper, 2 Joeys.

#17 OFFLINE   Tom Robertson

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Posted 23 July 2008 - 04:57 PM

Make no mistake: this is politics at its peak of ripeness.


Yeah, I have to close this thread as it so riddled with politics... (J/K) :)

Actually, you all have done a great job steering clear of the politics aspects. Thanks! That helps us moderators.

Cheers,
Tom

Go Packers!

My real treasures: 5 Grandchildren - S, D, M, M, C ; Now 5! Great-Grandtibbers - B, H, J, A, and M (Born 7/31/2011)


#18 OFFLINE   harsh

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Posted 23 July 2008 - 05:12 PM

Doesn't that seem a bit excessive??

Depends on how you feel about someone lying on their application for a license to "serve the public good".

Interoperability seems like an awfully good idea that benefits the consumer and keeps the provider on their toes as far as remaining competitive.

#19 OFFLINE   Richard King

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Posted 23 July 2008 - 05:18 PM

My understanding of the fine is that it is related to their terrestrial links being above the FCC approved limits. I agree that $20 million is simply extortion.
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#20 OFFLINE   Herdfan

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Posted 23 July 2008 - 05:58 PM

Perhaps some of why they both are on hard times is general consumer electronics manufacturers couldn't make standard AV equipment and car radios that supported both.


I thought they made it, just never actually sold it.:lol:

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