from RWOnline.com
April 25, 2008
The survey area included markets that are part of Arbitron’s diary service, for people age 12 or older, but it did not include areas where the PPM is used.
The most-listened-to stations on satellite were Howard Stern and his channels. His Sirius Channel 100 showed an AQH of 97,600, an AQH rating of 0.04, cume of 1.21 million and cume rating of 0.49 for persons 12+, Monday Sunday, 6 a.m. to midnight.
“Christmas and holiday channels also saw a spike over the spring report, representing a seasonal shift in listening,” the company said.
In the 12+ report, XM overall comes in with an AQH rating of 0.32 and a cume rating of 4.28. Sirius overall received an AQH rating of 0.26 and a cume rating of 2.86.
The ratings company takes pains to point out that users cannot assume these estimates would be proportional to Metro-level estimates, if they existed, or that diarykeepers who report listening are actual satellite subscribers.
Its estimates are projected from diaries used for its local market radio ratings reports and other services.
Artie recovered by smoking some pot and eating pancakes on his pre-planned trip to Amsterdam.
Artie's ok with airing replays (and gave his permission) to Howard to air replays on both Sirius and HowardTV at some future date.
from: SunTimes.com
Sun-Times Staff Reports
Comedian Artie Lange quit his 7-year-run as Howard Stern's sidekick during a violent outburst on Thursday's Sirius Satellite Radio broadcast.
Lange, who brings his stand-up routine to Waukegan's Genesee Theatre on June 6, had an altercation with his personal assistant in the hallways of Stern's studio that made its way on air and nearly became physical before show staffers intervened.
The former "MadTV" star couldn't assure Stern that similar outbursts wouldn't happen again, telling the shock jock: "I'm not a good person ... I gotta leave ... I love you" and offered his resignation, which Stern accepted.
Lange's battle with drugs and alcohol have been well-chronicled on the show and colleagues have been concerned for his health both on the air and behind the scenes. The New Jersey-based comic, whose weight has reached nearly 300 pounds since Stern's show moved to Sirius in 2006, has often complained about the rigors of the morning show's schedule. On Wednesday, Lange slept through much of Stern's show on a bed set up in studio.
Thursday's resignation was not the first time Lange has flirted with quitting the show on-air. In 2007, Lange said he would leave the show for a 6-month sabbatical to "dry out," only to return along with the rest of crew after the show's week-long summer break.
Fans will have to wait and see if Lange's announced resignation will hold this time. Stern's show does not broadcast live on Friday and will be on vacation next week.
from NewsDay.com
By Adam Abramson
Howard Stern Show fixture Artie Lange walked out of the studio after an argument and subsequent outburst at his personal assistant on the air.
Lange, who became a part of the show's daily routine in October of 2001, was spotted disputing with his assistant in the hallways off the air. When it was brought up to Stern, he asked the assistant Teddy to come into the studio and discuss the situation on the air.
Lange began to express his disdain for his assistant of nearly two years because of recent money issues. Teddy retorted by implying there's more to the job than meets the eye.
The two are slated to travel to Amsterdam this evening and the squabble began over setting up Lange's travel accommodations. However, the in-studio dispute quickly escalated into a discussion about how much Lange finances Teddy, who is affectionately called "Teddy Microphone" around the studio.
As the argument continued, Lange became enraged and physically lashed out at Teddy, but the physical confrontation was apparently defused by other members in the studio.
When Lange returned, he said Teddy would be "dead" had he reached him and he would be in jail.
Stern then expressed his feelings on the situation, saying he cannot condone Lange's actions. The comedian, who has had a similar outburst on the air in the past, said he cannot guarantee he can refrain from acting out in the future. Upon hearing that, Stern said he cannot have Lange around with the potential of such actions looming.
Artie then offered his resignation; Stern accepted, but told Lange to leave and cool off. Just before Lange left he told Stern: "I'm not a good person ... I gotta leave ... I love you"
Teddy returned to the studio several minutes later and said there was overreacting from everyone, but did not downplay the seriousness of the situation.
Show producer Gary Dell'Abate came in to analyze the situation, but he and Stern admitted they "did not know what to make of it all."
Stern does not host a live show on Fridays and the crew is on vacation next week.
from Marketwatch.com
March 25, 2008
CHICAGO (MarketWatch) -- The Federal Communications Commission is likely to approve Sirius Satellite Radio Inc.'s acquisition of XM Satellite Radio Inc., several analysts said Tuesday, following news that the U.S. Department of Justice has wrapped up its investigation of the transaction.
The Justice Department said the proposed $4.59 billion transaction would not reduce competition, and could therefore not be opposed on antitrust grounds. The companies have argued that their market should not merely be defined as satellite radio, since they must compete against all of terrestrial radio, as well as Internet radio, audio from satellite and cable television systems, music download services and other media. See full story.
"Given the track record of the FCC, we are hard pressed to believe it will block the merger after it received approval by the DOJ," said Alden Mahabir, an analyst at Utendahl Capital Partners, in a research note.
Mahabir, who expects a decision within two weeks, added that the FCC could impose conditions on the deal. One possibility, he said, is that the agency could demand that the company follow through on a-la-carte pricing plans that Sirius and XM have already proposed.
Under one offer the companies announced last July, subscribers would be able to choose 50 channels for $6.99 -- a 46 % decrease from the current standard subscription rate of $12.95. Customers could then add more channels for a minimum of 25 cents each. Other possible conditions, in Mahabir's view, include freezing prices or giving up some of the combined company's satellite spectrum for public interest purposes.
While Paul Gallant of Stanford Group also expects the FCC to approve the Sirius-XM transaction, he offered the opinion that FCC Chairman Kevin Martin will "proceed cautiously," imposing stipulations that exceed the expectations of many observers.
Martin could require future Sirius-XM receivers to have HD radio tuners that would pick up the digital stations of traditional broadcasters, Gallant said. Martin might also try to impose "broadcast decency limits" on the heretofore-unregulated satellite radio universe, as well as tighten the a-la-carte and pricing commitments the companies have made.
Sirius and XM have already said they would offer a series of "family-friendly" packages that would allow customers to exclude the racier content provided by shock jock Howard Stern and others.
Cowen & Co.'s Tom Watts sees a potential FCC decision within "the next few days" and also anticipates that the agency will ask for "modest concessions consistent with proposals from both companies."
April Horace of Janco Partners also weighed in. "It's unclear if the FCC will place any stipulations on the proposed merger. However, if there are stipulations, we do not believe that they will be deal breakers," she said.
Sirius shares declined 1.9% to close at $3.09, while XM shares fell 2.1% to $13.50. Both stocks soared Monday on the Justice Department's decision.
David B. Wilkerson is a reporter for MarketWatch in Chicago.
from Biz.Yahoo.com
By John Dunbar, Associated Press Writer
The transaction was approved without conditions, despite opposition from consumer groups and an intense lobbying campaign by the land-based radio industry.
The combination still requires approval from the Federal Communications Commission, which prohibited a merger when it first granted satellite radio operating licenses in 1997.
The Justice Department, in a statement explaining its decision, said the combination of the companies won't hurt competition because the companies are not competing today. Customers must buy equipment that is exclusive to either XM or Sirius, and subscribers rarely switch providers.
"People just don't do that," Assistant Attorney General Thomas Barnett said in a conference call with reporters.
The government also appeared to endorse a central argument the companies used in pushing for their merger: that ample competition is provided by other forms of audio entertainment, including "high-definition" radio, Internet-based radio stations and even devices like Apple Inc.'s iPod.
"The likely evolution of technology in the future, including the expected introduction in the next several years of mobile broadband Internet devices, made it even more unlikely that the transaction would harm consumers in the longer term," the Justice Department said.
The buyout received shareholder approval in November. The companies said the merger will save hundreds of millions of dollars in operating costs -- savings that will ultimately benefit their customers. The Justice Department also noted that argument in its approval.
The FCC had no comment on the decision Monday. In the past, FCC Chairman Kevin Martin has said any approval faced a "high hurdle."
Martin said last week that agency staff was "drafting various options" in preparation for a final recommendation. The five-member commission could vote against the deal, approve it or approve it with conditions. The agency could require the companies to freeze prices or make part of their satellite spectrum available for public-interest obligations.
Both XM and Sirius declined to comment on the decision on Monday.
Sen. Herb Kohl, D-Wis., chairman of the Senate Judiciary Committee's subcommittee on antitrust, said in a statement that the merger would create a satellite radio monopoly and asked the FCC to block it.
"We are particularly disturbed by this decision, given the Justice Department's record in recent years of 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," he said.
The companies have pledged that the combined firm will offer listeners more pricing options and greater choice and flexibility in the channel lineups they receive. If the deal is approved, the companies have said they would offer pricing plans ranging from $6.99 per month, for 50 channels offered by one service, up to $16.99 a month, where subscribers would keep their existing service plus choose channels offered by the other service.
Despite the consumer-friendly promises, most consumer groups have opposed the proposed merger.
"If this is what our competition cops do, we might as well close shop and save taxpayers a few hundred million dollars because they're not doing their jobs," said Gene Kimmelman, the Washington lobbyist for Consumers Union, nonprofit publisher of Consumer Reports magazine.
Shares of both companies rose following the news. XM Satellite shares were up 15 percent in afternoon trading while Sirius was up 8.6 percent.
from Reuters.com
By Peter Kaplan
WASHINGTON (Reuters) - The Federal Communications Commission is moving closer to a decision on whether to approve Sirius Satellite Radio Inc's plan to acquire rival XM Satellite Radio Holdings Inc., the agency's chairman said on Thursday.
FCC Chairman Kevin Martin said he had asked the agency's staff to put together draft documents outlining different possible decisions the agency might reach on the merger.
"I have asked the staff, after we've gotten all the final information that we needed, to be doing drafts, and when there were issues outstanding to do a range of options for us," Martin said during a press briefing.
However, Martin said he still had not made up his mind on whether he would back approval of the deal. He said he did not expect the FCC to reach a decision before antitrust authorities at the Justice Department.
"I haven't decided what I'm going to end up doing on it. I think that (FCC staff) will have various cuts and options as a part of it, but I haven't decided yet."
Representatives of Sirius and XM declined to comment.
The deal, announced on February 19, 2007, requires the approval of both the Justice Department and the FCC.
It would bring entertainers such as Oprah Winfrey and shock-jock Howard Stern under one roof. A key antitrust issue in the case is whether the combined satellite radio company would still face enough competition from free, over-the-air radio and new technologies.
The traditional radio industry, as well as some consumer groups and U.S. lawmakers, have criticized the deal as anti-competitive. But the satellite radio companies argue that they face plenty of competition from traditional radio stations and from the growing popularity of iPods and other personal audio players.
The FCC is studying whether the deal would be in the public interest -- and whether to enforce a 1997 FCC order prohibiting the two companies from merging.
(Reporting by Peter Kaplan; Editing by Tim Dobbyn)
from: biz.yahoo.com
By Seth Sutel, AP Business Writer
Sirius and XM had hoped to close their deal by the end of last year, but it's still being reviewed by the Department of Justice and the Federal Communications Commission.
On a conference call with investors, Sirius Chief Executive Mel Karmazin said the company was prepared to go forward on its own in the event its combination with XM isn't approved, saying the company is "fully funded" to continue business.
Sirius reported that its loss for the fourth quarter narrowed to $166.2 million, or 11 cents per share, compared with a loss of $245.6 million, or 17 cents per share, a year ago.
The earnings were ahead of the 13 cents per share expected by analysts surveyed by Thomson Financial.
The company's shares rose 1 cent to close at $3.05 Tuesday.
Both XM and Sirius have consistently lost money since their inception as they spent heavily to build up their programming and customer bases. The companies have relatively high fixed costs and are hoping that they can grow profits quickly.
To date, Sirius has now reported an accumulated net deficit of $4.94 billion.
Sirius finished the quarter with 8.3 million subscribers, 2.3 million more than a year ago. The gain pushed revenue 29 percent higher to $249.8 million.
Sirius did not provide a full-year outlook, pending a ruling on its proposed purchase of XM, which is worth about $4.5 billion based on current share prices.
Sirius said the average cost for acquiring each subscriber, a number closely watched by analysts, fell 12.6 percent to $90 in the quarter, from $103 in the same period a year ago, driven by lower costs for receiver units.
Total operating costs fell 7 percent to $399.6 million.
For the full year, the company reported a net loss of $565.3 million or 39 cents per share, versus a loss of $1.1 billion or 79 cents per share in 2006. Full-year revenue rose 45 percent to $922.1 million from $637.2 million.
from: biz.yahoo.com
NEW YORK, Jan. 9 /PRNewswire-FirstCall/ -- SIRIUS Satellite Radio today announced that January 9, 2008 marks the beginning of Howard Stern's third year broadcasting exclusively on SIRIUS Satellite Radio.
On January 9, 2006 Howard left his long and dominating reign in terrestrial radio to launch his show on SIRIUS in one of the biggest media events of the century. He was joined by longtime co-hosts Robin Quivers, Fred Norris, Artie Lange, and producer Gary Dell'Abate.
In the 730 days since Howard has been on the air at SIRIUS, the number of SIRIUS subscribers has surged to over 8.3 million.
"Howard Stern revolutionized broadcasting, and at SIRIUS he has redefined radio," said Scott Greenstein, SIRIUS' President, Entertainment and Sports. "Howard and his team continue to build the future of radio."
At SIRIUS Howard has been able to deliver more to his fans than ever before. Having two dedicated Howard channels -- Howard 100 and Howard 101 -- makes it possible for SIRIUS to replay The Howard Stern Show all day and night.
In addition, The Howard Stern Show is available online worldwide through SIRIUS Internet Radio at www.sirius.com, as well as at www.howardstern.com.
In December 2007, SIRIUS premiered The History of Howard Stern, an unprecedented radio documentary celebrating Howard's life and career. The History of Howard Stern was produced exclusively by and for SIRIUS for the Howard Stern channels, and is representative of programming that could only be done at SIRIUS.
The first installment of this epic series -- "The Early Years" -- spanned Howard's birth through his infamous days at WNBC Radio in New York City, and featured never-before heard audio and exclusive interviews with David Letterman, Pam Anderson, Alec Baldwin and other celebrities. The second installment of The History of Howard Stern will debut in December 2008, and future installments will follow.
from: Biz.Yahoo.com
NEW YORK (Reuters) - Sirius Satellite Radio ended 2007 with more than 8.3 million subscribers, a 38 percent rise that met its target for the year.
Sirius, in a statement released late on Thursday, added about 2.3 million net subscribers in the year, and its gross subscriber additions were the highest in the history of satellite radio.
"Based upon preliminary financial data, we expect to report significantly greater positive free cash flow in the fourth quarter of 2007 than the company reported in the fourth quarter of 2006," said Mel Karmazin, chief executive of Sirius, in a statement on Thursday.
Last February, Sirius, which is in the process of acquiring rival XM Satellite Radio Holding, said it expected in 2007 to add 2 million customers to bring its total to "more than 8 million."
By contrast, XM has previously said it would end 2007 with 9.0 million to 9.2 million subscribers.
from: Reuters.com
WASHINGTON (Reuters) - Lawmakers on the U.S. House of Representatives antitrust task force have expressed concern about the Justice Department review of Sirius Satellite Radio's proposed purchase of rival XM Satellite Radio.
Shares of the two companies fell sharply in the final hour of regular trading on Wednesday, as some investors feared antitrust enforcers might reject the combination.
XM shares closed down nearly 10 percent to $13.21 and Sirius closed 6 percent lower at $3.29, both on Nasdaq.
In a letter to Attorney General Michael Mukasey dated December 11, Reps. John Conyers and Steve Chabot wrote:
"We were dismayed to learn of recent press reports suggesting that Justice Department staff may be trying to rush through the merger before you have an opportunity to fully participate, and that Assistant Attorney General for Antitrust Thomas O. Barnett may intend to grant the merger over the objections of department staff."
A copy of the letter was obtained by Reuters on Wednesday. Conyers, who chairs the task force, is a Michigan Democrat, while Chabot is a Republican from Ohio.
Although U.S. lawmakers sometimes hold hearings to air concerns about large mergers, they have no direct say in whether the transactions are approved.
Analysts said the ultimate decision rested with senior Justice Department officials.
"We do believe there is a chance that the staff may recommend rejecting the merger of Sirius and XM, but even if they do, it remains up to the senior lawyers at the Department of Justice to decide whether or not to approve the merger," said Frederick Moran, an analyst at Stanford Group.
XM had no comment on the share movement. A Sirius spokesman was not immediately available.
"There are only two possibilities here: something has leaked from Justice Department and their review on the proposed merger or some very smart, fast money is really wrong," said Jon Najarian, co-founder of Web information site Optionmonster.com.
Barnett last year decided to approve appliance maker Whirlpool Corp's purchase of Maytag Corp, despite the objections of staff lawyers at the antitrust division.
By some estimates, Whirlpool and Maytag made about 70 percent of the washing machines and dryers sold in the United States. But Barnett concluded concerns about market share had been offset by the prospect of expanded competition from other manufacturers and efficiencies gained by combining the two companies.
from: Marketwatch.com
December 7, 2007
BERKELEY, Calif. (MarketWatch) -- When the two satellite-radio broadcasting systems came onto the consumer-electronics scene in 2001, early adopters were jazzed about the potential for a national network of good commercial-free music.
At first, I was not a fan of any radio system that had you pay a subscription. But I also knew there was an opportunity in the market for good programming, since the local stations had long since, in my opinion, become boring under the auspices of Clear Channel Communications, Inc and other conglomerates. These gave audiences a tedious sameness from station to station, across the country.
The satellite systems, Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. also seem to have an appeal with long-haul truckers and people in the middle of nowhere who could get nothing else.
I first began to use the systems a couple of years ago, and appreciated the outstanding programming and great variety of shows. Rental cars now feature them. If I spent more time in my car, I would consider subscribing for sure.
But neither system is profitable, and the likelihood seems remote that either one will turn a profit while the other exists. This is an example of competition killing two companies at the same time.
It's silly to imagine that these two companies fighting to the death are competing in such a way that benefits consumers.
They know this is a problem. We all know this is a problem. The National Association of Broadcasters knows this is a problem.
In protesting the merger, I believe that the NAB, which represents old-fashioned terrestrial broadcasters, would like to see both Sirius and XM go under. It's not about competition; it's about protecting the old-timers and big conglomerates.
At this point there are only four scenarios:
1. The two companies can continue to bleed money as separate entities and eventually go broke.
2. The two companies can continue to bleed money until one goes broke before the other -- leaving one left to create the monopoly everyone fears. The last firm standing may be so damaged by this that it, eventually, goes broke too.
3. The two companies can merge and still go broke.
4. The two companies can merge and eventually find the right financial and programming formulas to turn a profit.
Most of the outlooks are grim, and it's silly to imagine that these two companies fighting to the death are competing in such a way that benefits consumers. The public does not benefit from a situation where competition will kill one or both of the players.
No matter how you look at it, these two companies cannot both survive. There eventually will be a monopoly no matter what happens, and there may be a result where the entire service is lost forever.
Furthermore, the one merged company is hardly a monopoly by any standards. How can it abuse its position? Charge more than people want to pay?
It won't work. There are too many alternatives such as a automobile CD players, MP3 devices and regular radio stations. The monopoly argument is actually a joke.
Sirius and XM were sincere in their efforts to bring a different kind of radio to listeners, and over time it has become clear that there is not room in the market for two such companies. It has nothing to do with competition.
Let them merge immediately, and let's hope the one merged company can manage to turn a profit.
from: ap.google.com
 |
| Radio personality Howard Stern conducts an on-air news conference during his debut show on Sirius Satellite Radio, in New York, in this Jan. 9, 2006 file photo. (AP Photo/Richard Drew, file) |
NEW YORK (AP) — Howard Stern finds himself listening to something different these days: "The Howard Stern Show," on satellite radio.
Unlike his last years on terrestrial radio, where Stern felt his voice was neutered and his program sterilized, the still undisputed king of the shock jocks loves what he's hearing now.
"I know the show is funnier," Stern says over lunch. "I tune in and it's funny. It's a good show. I'm proud of it."
Oh, and one more thing ...
"When you're making a joke," the oft-censored radio star says, "the punch line doesn't need to be bleeped."
Almost two years since his much-heralded leap from CBS Radio's WXRK-FM and terrestrial syndication to Sirius Satellite Radio, Stern is blissful.
He's reveling in the huge increase in satellite radio subscriptions, not to mention the woes of old foes like his ex-employer or longtime nemesis Don Imus.
He's only two years into his five-year, $500 million deal with Sirius and he's already considering a possible extension. Stern is on board with the proposed satellite merger with once-rival XM. And he's proud of his role in expanding the number of Sirius subscribers from 600,000 when he signed his deal to nearly 8 million today.
Stern, his hair creeping out from beneath a black knit cap, is delivering his state of satellite address between bites of two turkey burgers (no rolls, just a salad). Stern admits now that his loud boasts about the future of satellite radio before his debut were as wishful as anything else.
"I didn't think it would be like this," Stern says. "Not this fast. This is crazy. ... I just didn't want to be embarrassed."
It was Dec. 16, 2005, when Stern said goodbye to terrestrial radio after an unprecedented run in the nation's No. 1 market. Tired of federal regulators and feuding with his bosses, Stern signed on with Sirius and never looked back.
But Stern still keeps an eye on terrestrial radio — mostly as a source of schadenfreude.
He delighted in the problems that CBS Radio endured after his departure, from the ill-fated hiring of David Lee Roth as his replacement to the whole mess with Imus, fired over his remark about the Rutgers University women's basketball team.
"I don't want to see anyone doing poorly," Stern says sarcastically before breaking into laughter.
And he wonders why Citadel Broadcasting would bring Imus back on its New York flagship station, WABC-AM.
"At this point, I don't think he's very relevant," Stern says. "People will tune out within a week. I defy you to listen. It's like a rodeo — you know, see how long you can ride a bull? See how long you can keep listening to Imus.
"Time it. You'll throw up. You'll get sick. You'll die."
Stern is more excited about the potential merger between his company and XM.
"It would be great for the industry, great for the company, great for the consumer," he says. "I'm not a salesman for the merger, I don't know all the facts and figures, but there's more service and they're talking about lower prices."
He has no fears of the government intruding into satellite radio over its unexpurgated content.
"I don't see, legally, how government regulation would hold up in a pay industry," says Stern, whose First Amendment battles with the Federal Communications Commission once led to a $1.7 million fine.
"Then they're going to have to do that with the Internet, and newspapers, and magazines — everything," Stern continues. "If people are paying for it, why would there be government regulation? And I don't see that ever changing."
Stern's two-year anniversary at Sirius comes with a gift for his fans/subscribers: an epic recounting of the King of All Media's life. "The History of Howard Stern" — beginning with Stern's bar mitzvah and trips to summer camp — debuts Dec. 17 on Sirius, covering the years 1954-85.
It's the kind of radio that keeps Stern listening to his own stuff, and keeps his fans coming over to Sirius as he gets ready for year three. As Stern starts speaking enthusiastically about those fans, one stops by the restaurant table to say hi: Alan Alda.
Yes, "Hawkeye" Pierce from "M*A*S*H," the Oscar-nominated and Emmy-winning actor, the silver-haired Hollywood star. The pair swap moves from an imaginary chess match, with Stern delivering a stumper.
"I mostly lose," Alda says.
"I'll show you what to do," Stern replies.
No surprise, the radio star sounds like he knows what he's talking about.
from CNN.com
NEW YORK (AP) -- Shareholders approved a deal Tuesday to allow Sirius Satellite Radio Inc. to acquire its rival XM Satellite Radio Holdings Inc. for about $5 billion, but the largest hurdle has yet to come -- regulatory approval in Washington.
Shareholders of Sirius and XM had been widely expected to approve the deal, which would allow the companies to save costs on programming, acquiring subscribers and broadcasting. Shareholder advisory firms had already endorsed the deal.
More difficult will be getting the deal approved in Washington, where the Department of Justice and the Federal Communications Commission must both give their blessing. Several consumer groups have opposed the combination, saying it would create a monopoly that could hurt consumers.
Sirius said in a statement that more than 96 percent of the shareholder votes cast approved the acquisition, while XM said 99.8 percent of its shareholders were in favor. The companies said they still hoped to complete the deal by the end of the year.
The FCC had originally said the two satellite radio companies couldn't combine, but that rule can be changed. Sirius and XM have argued that satellite radio now faces more competition for listeners since the boom in digital listening devices like Apple Inc.'s iPod, Internet radio and cell phones that can play music.
Sirius and XM have said that a combined company would offer listeners more pricing options and greater choice and flexibility in the channel lineups they receive.
Sirius and XM now offer packages of music, talk, sports and other programming for a fixed rate of $12.95 a month. Many of the music channels are commercial-free, and unlike terrestrial radio, the signals can be received anywhere in the U.S.
If the deal is approved, the companies have said they would offer pricing plans ranging from $6.99 per month, for 50 channels offered by one service, up to $16.99 a month, where subscribers would keep their existing service plus choose channels offered by the other service. It isn't possible now to pick channels one by one.
The deal calls for XM shareholders to receive 4.6 shares of Sirius for every share they own, which values XM at $16.56 a share or about $5 billion, based on current share prices.
from OrbitCast.com
Reports have come in today claiming that Thomas Barnett, Assistant Attorney General for the Department of Justice Antitrust Division will approve the Sirius-XM merger, according to a Cowen & Company note issued today.
While no official announcement has been made, the reports have sent Sirius Satellite Radio Inc. (SIRI) and XM Satellite Radio Holdings Inc. (XMSR) stock soaring up nearly 6% today, despite a relatively weaker market. According to Cowen & Company analyst Tom Watts, the Antitrust Chief's approval would come "despite a staff recommendation against the deal."
In addition, it's reported that the announcement of a decision also might arrive as early as next week.
Watts notes that the pattern of the Antitrust Chief acting contrary to his staff's recommendations would be similar to the approval of the Whirlpool-Maytag merger of 2006. The Antitrust Chief ultimately approved the Whirlpool-Maytag merger, despite that DoJ staff was reported to be positioning to block the deal.
Cowen & Company continue to expect the Sirius-XM merger to be approved, and "take encouragement" from word that a decision come as soon as next week.
from Orbitcast.com
The Federal Communications Commission has announced the public comment period for the Sirius-XM merger application has started. Comments/petitions are due July 9th, 2007 and responses/oppositions are due July 24th.
The clock has started.
Sirius and XM have issued the following joint statement regarding the announcement:
"The FCC public comment period is an important step in the regulatory review of our merger and brings us closer to its completion. The combination of our companies will lead to more choices and better pricing for consumers, and result in a stronger competitor in the rapidly evolving audio entertainment market. These benefits explain why the merger already has received the strong support of a wide array of minority, consumer, women's and rural organizations. We are confident that the comments filed with the FCC in the weeks ahead will continue to reflect these significant public interest benefits.
"We look forward to working with the Commission to demonstrate that this merger is in the public interest, will have no anti-competitive effects on the market and to making any appropriate changes in its 1997 licensing order."
Send the FCC a comment on the merger here.
What's in the merger for you? Sirius' side: siriusmerger.com
from: whittierdaily.com
Someone once said that the best way to get rid of a bad law is to enforce it vigorously, thus making its flaws visible to all. Federal regulators may not induce repeal of the antitrust laws, but they show a talent for making the statutes look obsolete.
It's widely accepted that one of the crucial functions of government is to protect against monopolists and cartels. Left to its own devices, many critics of capitalism believe, the market would allow voracious corporations to collude, joining forces to hold consumers upside down and shake the nickels out of their pockets. To ensure that free markets operate for the benefit of all, we are told, the government has to strictly police mergers to keep any company from gaining an unfair advantage.
That is what it claims to be doing in two different sectors. Federal Communications Commission Chairman Kevin Martin has expressed serious qualms about approving a wedding between the only two satellite radio companies, Sirius and XM. The Federal Trade Commission is going to court to block a merger between two organic grocery chains, Wild Oats and Whole Foods.
In both cases, the rationale is that fewer companies will mean fewer choices and higher prices. But consumers who want what these firms provide have more options than the Milky Way has stars. If a couple of those stars cease to exist, nobody will notice, and besides, new stars are born every day.
Organic food consumers would not be the suffering captives of this new company. The business is growing like an organic weed. Every grocery store has a raft of offerings, and chains from Wal-Mart to Trader Joe's are fighting to get their share of sales. If the bigger Whole Foods is price-gouging, customers can easily find other sources for what they want - from farmers markets to online suppliers.
The key government error is defining the market as a narrow sector isolated from other sectors that provide reasonable substitutes. That same mistake explains the FCC chairman's aversion to the satellite radio deal, as well as the letter from 72 members of the House of Representatives claiming it would have "devastating" consequences for listeners.
As it happens, the alternative to one satellite radio company may not be two companies but none. The existing ones have accumulated about $7 billion in losses between them. The merger may allow them to reduce costs, so they can eke out a profit and stay in business.
Raising prices would not be easy, since consumers have plenty of affordable options. Music fans can listen to terrestrial radio, pop in a CD, find an Internet feed, turn on an iPod, flip to the cable TV music station or checking out YouTube.
Web radio may not get as much attention as Howard Stern, but it has four times as big an audience as XM and Sirius combined. In his alarm about the proposed merger, Martin has mistaken a mouse for a moose.
The truth is, markets are more complex and dynamic than regulators assume. Bill Clinton's Justice Department tried to break up Microsoft before it enslaved us all, but the feds got far less than they wanted. Microsoft, however, has found out that even a virtual monopoly doesn't guarantee prosperity. Despite controlling more than 90 percent of the market for computer operating systems, the company's stock price has been flat for the last decade - while Apple, which has only a tiny share, has increased in value 15-fold since 2003.
Meanwhile, other companies, notably Google, have trounced Microsoft in other areas. Over the last decade, says Thomas Hazlett, a professor of law and economics at George Mason University, "Microsoft has seen its market position erode, and it has virtually nothing to do with the antitrust case."
The point is not that corporations will never try to suppress competition, as Microsoft is accused of attempting with its new Vista operating system, which it recently agreed to alter in response to a complaint from Google. The point is that they will usually fail, because of the many choices available to the buying public - and that on the rare occasions when they succeed, the success is invariably fleeting.
Steve Chapman is a columnist with the Creators Syndicate.
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