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XM-Sirius Merger down to 1 vote

Discussion in 'Sirius XM General Discussion' started by Pete K., Jul 23, 2008.

  1. Pete K.

    Pete K. Icon

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    Rapid City's pride and joy, Jonathan Adelstein has withdrawn his "generous" conditions and voted no on the XM-Sirius merger.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.
     
  2. syphix

    syphix Hall Of Fame

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    Orbitcast has an interesting point...

    Hmmm.....
     
  3. tcusta00

    tcusta00 Active Member

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

    syphix Hall Of Fame

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    More fuel to the rumor mill fire...
    http://www.reuters.com/article/marketsNews/idUSN2341638620080723
     
  5. syphix

    syphix Hall Of Fame

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    Jun 23, 2004
    "Tentative deal" made:
    http://www.cnbc.com/id/25819198
     
  6. Stewpidity

    Stewpidity Godfather

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    I cannot believe this has taken this long...pure bureaucratic BS...
     
  7. Pete K.

    Pete K. Icon

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    Apr 23, 2002
    The deal is done, or so says the WSJ. Only 491 days but heck who's counting?
     
  8. cforrest

    cforrest Icon

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    Jan 20, 2007
    http://online.wsj.com/article/SB121683130281477651.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.
     
  9. djlong

    djlong Hall Of Fame

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    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. Tom Robertson

    Tom Robertson Lifetime Achiever DBSTalk Club

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    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
     
  11. deadrody

    deadrody New Member

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    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. bigbenny13

    bigbenny13 AllStar

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    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. harsh

    harsh Beware the Attack Basset

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    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. harsh

    harsh Beware the Attack Basset

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

    Tom Robertson Lifetime Achiever DBSTalk Club

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    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
     
  16. syphix

    syphix Hall Of Fame

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    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??
     
  17. Tom Robertson

    Tom Robertson Lifetime Achiever DBSTalk Club

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    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
     
  18. harsh

    harsh Beware the Attack Basset

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    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. Richard King

    Richard King Hall Of Fame

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    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.
     
  20. Herdfan

    Herdfan Well-Known Member

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

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