If you’ve been following the news over the last few months, you’ve probably noticed a few articles analyzing, speculating or simply spreading rumours regarding a merger between Sirius and XM Radio. Leave all the non-facts behind and focus on the present. Federal Communications Commission Chairman Kevin Martin publically announced that the FCC has decided not to approve a merger between these two satellite radio rivals.
The obstacle comes not from 2007, but nearly decade ago, in 1997. When the FCC initially licensed the two companies, there was language in the licensing barring one from acquiring control of the other. Sirius CEO Mel Karmazin must be heartbroken; he has often publically announced how dearly he would love a merger. In November 2006, Karmazin seriously believed that a merger would financially benefit both companies.
Even if the FCC changed their mind regarding the merger between Sirius and XM Radio, it would still have to pass antitrust scrutiny by the Department of Justice. But don’t despair. This may be a good thing; we all know how terrible a lack of competition can be for consumers.
News source: Ars Technica
The obstacle comes not from 2007, but nearly decade ago, in 1997. When the FCC initially licensed the two companies, there was language in the licensing barring one from acquiring control of the other. Sirius CEO Mel Karmazin must be heartbroken; he has often publically announced how dearly he would love a merger. In November 2006, Karmazin seriously believed that a merger would financially benefit both companies.
Even if the FCC changed their mind regarding the merger between Sirius and XM Radio, it would still have to pass antitrust scrutiny by the Department of Justice. But don’t despair. This may be a good thing; we all know how terrible a lack of competition can be for consumers.
News source: Ars Technica
yes by monopolizing the satellite radio market.
yes by monopolizing the satellite radio market.
that's exactly what I was going to say until I saw you comment... all that would happen is the cost would sky rocket...
But if they merged with FCC aproval and Antitrust, then whats to stop DirecTv & Dish from merging , the FCC also denied their merger few years ago.
along with the same songs over and over. At least with a sat radio, music wise, I have NO commercials, plus, I can
put my favorite artists in the memory and have it let me know if they are on somewhere.
The no commercials aspect of sat radio was my main draw.
A side benefit is when I travel to visit my parents, a 3 hour drive, I can listen to the evening news, weather etc...
I was actually hoping for a merger since I like XM, but Sirius has all those football (do they have nba as well?) channels while im stuck with baseball play by play
http://www.tradingmarkets.com/.site/news/MOMENTUM/497926/
Everyone Slowwwwwww Down.
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