Are regulators finally set to make a decision about the merger between Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR)? Investors are once again betting that this is the case. Briefing.com, a site that is widely followed by traders, is citing an unnamed report Wednesday morning saying that “XMSR-SIRI merger could receive approval from DoJ and FCC tonight.” That isn’t much in the way of any real information. but don’t tell that to Wall Street. Shares of XM were up nearly 4 percent in mid-morning trading while Sirius’ stock gained more than 5 percent. This is worth noting considering that the rest of the stock market, and the tech sector in particular, is trading lower Wednesday, thanks in large part to Apple’s (AAPL) disappointing outlook. But as I’ve pointed out repeatedly since chatter that approval of this deal was said to be “imminent” in late November, it’s silly for investors to try and bet on when exactly the Department of Justice and Federal Communications Commission will issue their rulings. Spokesmen for both Sirius and XM declined to comment on the latest speculation as did spokeswomen at the FCC and DOJ. I still think the merger should, and will, eventually be approved. But this is a complicated deal so nothing is certain. And even though it may seem that the DOJ and FCC are dragging their feet on it, recent history shows that the regulators are not taking that much longer to review this merger than they have for other deals that have antitrust implications. As I reported last week, the FCC took longer than its informal 180-day guideline to approve AT&T’s (T) purchase of BellSouth in 2006, as well as Comcast (CMCSA) and Time Warner’s (TWX) purchase of bankrupt cable company Adelphia. (Time Warner also owns CNNMoney.com.) There is nothing to suggest that a ruling is going to be announced today, this week, or even this month. So my words of advice to anxious Sirius and XM shareholders would be “Patience, grasshopper. Patience.” Stop buying and selling on unsubstantiated rumors and just sit back and wait for the inevitable, although not necessarily imminent, announcement. Posted by Paul R. La Monica 11:00 am 52 Comments
Who are the regulators by name? How much are these people collecting from holding up the merger. We know congressmen and women are benefiting, but the regulators themselves need to be investigated here. If Congress should do anything at all, it should limit the amount of time regulators can take in these matters. This merger is clearly a record amount of wasted time over a simple issue. Posted By Kevin Lewis, Cheyenne, Wyoming : March 13, 2008 3:13 pm
Come on already! Pass this thing so I can have Sirius again. I bought a new SUV that only has XM, and I want Sirius. Why can’t I decide on what I want in my new SUV? Posted By Sal, Dallas, TX : March 11, 2008 12:12 pm
“if this deal does not go through, it will be studied and mocked for years as the embodiment of a corrupt political and economic system.” and don’t forget the embodiment of a corrupt polititian..Conyers..It makes me sick to my stomach that people like him continue to “serve” in government. Posted By Alfonso Buttofucco, Rhode Island : February 8, 2008 3:57 pm
I am a current XM radio subscriber and I think that it’s a good service. Than again Sirius has stations that I also like. I’m to the point where I want to switch to Sirius, and everybody knows how much that will cost me! A new reciever, re-installation fees, new activation fees, etc. I really wish this deal goes through before I end up spending all that money. What are “they” afraid of. It’s a win win situation, I mean really who looses? Posted By Nick Farrell, Phoenix, AZ : February 8, 2008 2:36 pm
If the merger between Yahoo and Microsoft takes any less time than Sirius and XM, I want a channel on Sirius dedicated to exposing the payouts congressman and other important officials have received from the NAB. Call it the “Dirt” channel. I would listen to that. Posted By San Diego, CA : February 4, 2008 8:41 pm
I find it deeply troubling that our economy has to sustain so much litigation. Posted By Joe, Boston MA : February 3, 2008 9:05 pm
The government is spending way too much time on this merger. This is not a monopoly. Many other more important merges are being approved in a lot less time. Approve the merger and stop wasting taxpayer’s money. Posted By Tony B, Baltimore, MD : January 25, 2008 1:08 pm
The idea of a monopoly here is obviously unfounded. The competition in this area is increasing so fast that not even a tech guru could keep up with it. The only advantage SR has is their content. This could dry up if they don’t merge to enable them to compete. They need to make a profit to pay for the content. The DOJ and FCC are being manipulated by free radio interests. It is so obvious that this is happening that all who work there should be embarrassed. By the time they decide what to do the two Companies could be out of business. Posted By Dave, Scranton,PA. : January 25, 2008 11:49 am
What is NEVER mentioned in any SIRI-XMSR merger article is that there is another HUGE potential/overlooked competitor in the near future — the auction sale next year of the old analog TV spectrum. In addition to future owners of these signals using it for digital tv broadcasts and long-distance Wi-Fi will be some owners using it to broadcast MUSIC and other content. Hello?! Isn’t anyone picking up on this? Posted By Joe, tallahassee, FL : January 24, 2008 11:47 pm
Heres the deal. If FREE radio is so great, then they have nothing to worry about when this merger goes through. Heck Free radio should even encourage the merger just so they can prove how much better they are over satellite radio. Why so afraid FM? I love how FM radio now advertises itself as FREE radio. I guess you get what you pay for. I like paying for great content and service. Not commercials and wacky dj’s Posted By Joe, Wilmington Delaware : January 24, 2008 5:05 pm
This is not a NEED TO HAVE product like gas, oil or electricity. Any of those mergers go thru EASILY because someone gets RICH. If you don’t want it, then DON’T pay for it. Listen to FREE FM/AM. End of debate. Posted By Brian, Chicago, IL : January 24, 2008 12:51 pm
Oil companies merge within 4 months, and nobody blinks and eye and prices still rise. This has been going on how long? Get the lobbist for the automakers and the terristrial radio losers out of the mix and let’s play ball! Posted By Donna Grootenboer, Seneca, IL : January 24, 2008 9:42 am
Anyone who says that this merger should not go through is insanely naive or knows NOTHING about business. This is NOT a monopoly. Yes, it would be a monopoly of Satellite Radio, but not ALL monopolies are bad. You can’t narrow your focus to satellite radio. You have to realize that this is a music entertainment medium. Sirius competes with MP3 players, regular radio, CDs, Cassettes, the internet, cell phones…do I need to go on? People saying, “Oh, they’re going to raise the price if they merge.” Yeah, that’ll make sense. Satellite radio is a very elastic business. If they were to raise the price people would be canceling subscriptions in droves. The merger allows for tiered pricing, and also eliminates the need for two different and non-compatible radios. These companies are bleeding money right now because they need to keep trying to provide exclusive content. People who don’t think this merger is fair are either insanely stupid or pawns of the NAB. I think Heaven’s Gate was a more educated group of people than the NAB is, as well as more educated than anyone against the merger. Go take a course in economics so you can understand why this needs to go through. Posted By David, Cheshire, CT : January 24, 2008 9:14 am
Okay as a customer and a stockholder, I want the merger to go thru. The problem that I can’t seem to understand is how exactly this would be bad for consumers?? There is such a small market for customers as of right now for Sirius and XM (can’t really count all the cars that come equipped with the option, as how many of them become actual paying cuatomers) and these consumers will NOT tolerate their satellite radio to start creeping up in cost (like cable). This is a service that we can all live without, especially with iPod’s and other distractions. They start jacking up the prices and people will cancel their subscriptions. I firmly believe that the ala cart will save this merger and lower prices. Posted By Kelly, Hillman, MI : January 24, 2008 9:12 am
I just they would just decide and move on and be done with all this uncertainty… is bernanke head of the FCC too? I personally would love to see the merger go through, I hate that in my Honda had no choice but XM when I wanted Sirius… XM has way too many commercials lately… Posted By Tracy, Islamorada, Florida : January 23, 2008 11:21 pm
Thank goodness at least SOME people can see that the merge would be bad for consumers. It would turn sat radio into the next cable tv. Everyone hates them, their customer service sucks, the price is high and keeps going up, but the consumer only has ONE choice, so you just have to deal with it, or do without. Posted By Ronald Bown, Galloway, NJ : January 23, 2008 10:53 pm
I canceled XM last year after having it 3 years not because of the price, but because the had so many COMMERCIALS! Posted By Andrew, Atlanta, GA : January 23, 2008 10:21 pm
When WIFI blankets North America (think in terms of reasonably soon after the VHF band is abandoned next year and bidders go for some of that spectrum), then the concept of both XM and Sirius becomes somewhat obsolete. Why pay to hear what a company wants to give you when you can receive exactly what you want to hear– and probably for a lot less? I’m sure this is not lost on the same government that charged each entity over $80 million for the right to launch those birds. Posted By Ningueme, Cranbrook, BC : January 23, 2008 6:28 pm
It’s about flippin time the DOJ and FCC get going on this. Lots of money is being held up on this trade, let’s hope it’s approved tomorrow like people are predicting! PS: Short squeeze anyone lol? Posted By Jack and Rod, Beaver Falls, Pa : January 23, 2008 5:14 pm
I think i win either way. If they merge then the SIRI stock will rise as a result. If they dont, then XM will fail and we will be left with a monopoly anyways and my SIRI stock will rise. Thank you Sirius. And Sirius has the best content by far of the two. With Howard, NFL, and Nascar Sirius cant loose. Posted By Cody, Columbia,SC : January 23, 2008 4:37 pm
nab will challenge the merger if approved and win in the federal courts. no doubt because there is no other competition out there and this is a monopoly if it happens. Now on the other hand if free radio starting charging for there services to the consumer then and only then would this not be an antitrust issue. Posted By Richey Douglas, Ridgeland, MS : January 23, 2008 4:31 pm
Can anyone say, CHA-CHING! There are multiple sources now reporting that this is imminent and not the Bear-Stearns definition. It all makes sense: placate Conyers and Congress foes through the New Year, couple that with the government getting antsy to show ANYTHING but inaction and merger city here we come! Posted By Bigfoot Jones, Modular CIty, Fla. : January 23, 2008 3:55 pm
The decision to go to war with Iraq was taken much faster then the merger of XM-Sirius. It must be a difficult one to decide………….lol Posted By Nensu, Hershey, Pa : January 23, 2008 3:55 pm
Man, you’re stupid. The merger will not be approved. Don’t you know anything about the FCC? Don’t you know anything about Kevin Martin? His decisions have nothing to do with what would be best for the consumer. He’s all about politics. Given that, who do you think has more political capital, the NAB or satellite radio? I only hope there aren’t too many idiots out there who will read this article and buy shares of XM or Sirius in the hopes that the merger will be approved. Posted By Mark Murata, Las Vegas, NV : January 23, 2008 2:47 pm
The main reason I want it to go through is to me someone who spends 1hr most in there car a day 13 bucks is a little out of control but 5 or 6 bucks and I might be tempted to get one. The only thing I care about is the music so the choice package would be fine for me. Posted By Jason, NYC NY : January 23, 2008 2:35 pm
Lets…Oil companies merge, financial companies merge, big tech companies merge, but two barely surviving radio companies can not merge for fear of a monopoly (can you smell the fear at Clear Channel). The DOJ and FCC should be focused on more important mergers. Posted By Chip, Washington, DC : January 23, 2008 2:15 pm
This merger must be rejected. There will be nothing to stop Sirius from raising its prices. What is going to stop them. No one want to listen the “free” alternative, with its narrow content, often poor reception, and endless commercials. And besides, what’s the truck driver in Montana going to listen to on free radio. The argument that IPODs contrain prices is a joke. You can’t get live sports or the variety of entertainment on an IPOD that you get with Sat Rad. HD Radio is in its infancy, who knows what the future holds for it, do we want the DOJ to guess, and in the meantime we get stuck with a diminished Sat Rad product at a higher price? The bottom line is that this is a bad deal for consumers, but a good one for stockholders. The FCC and DOJ are supposed to protect consumers, the deal should be rejected Posted By Alan G. Henderson, Washington, DC : January 23, 2008 2:03 pm
As has been said many times, this deal is being held hostage by politics. Who’s getting screwed? People like me — customers. All of the potential content, yet we’re more worried about how Jesse Jackson is getting a handout. Do what you’re good at, right? That’s right, apologize. Kiss it. Apologize. Posted By Mat, Seattle WA : January 23, 2008 1:57 pm
I cant believe the massive hold up here. What it comes down to is Howard Stern… The guy is a huge component of the satelite industry and the NAB has been lining the pockets of Washington to stop the merger as a result. Sorry NAB, but Hoaward’s content and satelites content as a whole is far superior to your inferior brand of terrestrial radio. You will lose. Posted By Mike Cz, Somers CT : January 23, 2008 1:28 pm
Let me ask you how this will be a monopoly when you hear on fm/am radio about HD radio and all the FREE channels you will get. When you see SYNC in Ford so you can listen to MP3 players. They will be competing against others. Now should they have a la carte channels, yes, but it will be better for both companies. Posted By Scott Dallas, TX : January 23, 2008 1:26 pm
“if this deal does not go through, it will be studied and mocked for years as the embodiment of a corrupt political and economic system.” I say the same if it does go through. Pay- satellite radio is in a league by itself. There is no way you can justify public radio, TV, CD players, singing panhandlers or whatever as being the same market. Anti-trust is all about preventing a monopoly. With regulatory approval, there would be only one Sat-radio company in existance…that’s as blatant as a monopoly can get. People bought XM stock over SIRI years ago mainly due to sounder financial backing by the likes of GM, Honda, Hughes electronics, etc. People choose one service over the other based on marketing differences. In such a merger, some consumers will be alienated. Pricing will be unchecked by the lack of competition. Overall choices will be lesser to some unknown but definite degree. This will not benefit the consumer, only the aristcrat shareholder. I made a small fortune on XM stock and some will conceivably do very well with this merger. But, I am also fed up with this kind of politics. If this merger is approved, I hope it doesn’t hasten the end of satillite radio, in the face of the inevitable recession this economy must endure. Posted By John, Richmond, VA : January 23, 2008 1:19 pm
I agree with the competition factor. I have an iPod and just bought a Sirius Stiletto. I can download media to both. Should Apple be held up on any new products due to conflicts??? Posted By David, Hollywood,SC : January 23, 2008 1:17 pm
Another important factor is that the Official “FCC Items on Circulation” http://www.fcc.gov/fcc-bin/circ_items.cgi However, since that list gets updated Friday’s you might do well to No circulation, no decision. It’s not like the FED appearing g before time. ;-)) Posted By Isaac, Rotterdam, Holland : January 23, 2008 1:03 pm
No one will cancel their sattelite subscriptions because subscribers are folks who can afford to pay for the service recession or not. Posted By Memphis, TN : January 23, 2008 1:03 pm
I am curious how many people are waiting for the merger decision before they subscribe. I would not have subscribed in the past year with all the questions…Mainly the potential hardware incompatibility. I think the merger decision will bring a boost to sales, especially if it goes through with A La-Carte. Posted By Haggs, Boston MA : January 23, 2008 12:58 pm
Even “if we do” go into a recession I still will find a way to pay for my SIRIUS! Posted By Steve, Melbourne, FL : January 23, 2008 12:52 pm
XM is a poorly run business, so with the same knuckel-heads in charge trying to get a merger through - well good luck! As a former subscriber, they have jacked me around enough that I finally went out and got an HD radio. XM needs to be investigated by the Attorney General for their business practices. I highly recommend that no one ever subscribe. You will be sorely disappointed. Posted By John Wildin, Kansas : January 23, 2008 12:49 pm
so does this merger mean I need to buy a new receiver that is compatiable with the Xirus monopoly signal? Posted By Jack, Rosewell : January 23, 2008 12:49 pm
The DOJ & FCC is costing small investors like myself a lot of money. Since the price of SIRI is so low a lot of small investors are in this stock. I purchased the stock anticipation a decision in a timely fashion. Deal or no deal Wall Street does not like uncertanty. If the deal goes through the stock goes up and if it doesnt go through is still goes up. WHAT THE HECK IS GOING ON. Posted By FRANK, NYC : January 23, 2008 12:44 pm
Given that there currently are only two players in the market, why would the FCC agree to stifle competition by allowing a merger, which would result in only one player? Posted By Michael L, Chicago, IL : January 23, 2008 12:34 pm
XM Radio has the worst customer service Posted By Andy, Carlsbad, CA : January 23, 2008 12:30 pm
What makes you think Americans will be cancelling their subscription? If your budget is so tight you can’t afford the 12.95 a month then something is wrong. And with the approval means a la carte pricing for subscribers, i.e. cheaper prices. The only way for these two companies to survive is to merge, if not, they will eventually kill each other off. And that would be ashame, especially if it was due to corrupt politics… Posted By Ricky Schedule, Ft Knox, Ky : January 23, 2008 12:28 pm
As an XM subscriber and a former Sirius subscriber, I left Sirius because I didn’t appreciate the R-rated cross promotions that were on the news channels I listened to most. While listening to CNN, Sirius put a promotion ad on inviting submissions of the best sex sounds for a contest. Sirius can have all the X rated programming it wants, but let me choose when to listen. Posted By Jake Peters, Kansas City, MO : January 23, 2008 12:20 pm
To Jeff in Hartford Conn. When times are tough - very few people take prudent action as you describe. It’s very much the opposite. Most people spend money on things they don’t really need and can’t afford - why? - because they want to feel better. When times are tough people spend “make me feel better” money. So food, entertainment and liquor will always do just fine. People are not going to cancel Sirius or XM to save $13/month - NOT A CHANCE. Posted By Ken, Springboro, Ohio : January 23, 2008 12:15 pm
The F.C.C. has failed satellite consumers miserably by not enforcing the interoperable mandate. These to satellite companies were required to develop and deploy an Interoperable receiver which would allow consumers to switch between services without the need to purchase new hardware. Posted By Michael Hartleib Irvine Ca. : January 23, 2008 12:01 pm
This whole process is a giant waste of time and resources. A few politico’s trying to make hay for their folks at home. Dog & pony show! Posted By Will, Chicago IL : January 23, 2008 11:59 am
This is just so stupid that it has taken so long! Big financial institutes can merge in a few weeks, so can oil companies. I don’t know about you, but almost EVERYONE NEEDS oil and financial institues, but not everyone needs pay radio service, especailly when they can get the same thing for free. Posted By Clark, Lorton, Virginia. : January 23, 2008 11:56 am
ok, let’s be honest. this has nothing to do with business. this case has highlighted just how dirty politics and business are. this is taking forever because the NAB is funded by Clear Channel and the other major radio companies and they’ve spent millions to buy politicians and block this because they are threatened by it. if this deal does not go through, it will be studied and mocked for years as the embodiment of a corrupt political and economic system. Posted By john harper detroit, michigan : January 23, 2008 11:55 am
When you look at the approval as a whole does it really mean anything to the stock valuation ? They are both companies burning through cash and as Americans hunker down for a recession they will be cancelling subscriptions that they could do without when they need to pay the rent and the food/energy bills. Posted By Jeff Daigle, Hartford, CT : January 23, 2008 11:54 am
Honestly…why has this taken so long? There is no monopoly; this is a product that competes with regular radio, cd’s, mp3 players, internet radio, and more. It would be nice to think that the decision makers are more concerned with the interests of the American public as opposed to who is giving them kickbacks, but I guess that would be too much to ask. Posted By Mark, Manchvegas NH : January 23, 2008 11:45 am
Man!! I can’t wait until they come to some kind of agreement about this merger. Either way it will be a good to put this thing to bed once and for all. Posted By Don Gonzales, Louisiana : January 23, 2008 11:33 am
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This merger is a no brainer. If it’s not approved there’s a good chance one of these companies will cease to exist and you’ll end up with one company anyway. The argument comparing satellite radio to cable TV doesn’t wash because cable TV doesn’t compete with a free service like satellite radio does with terrestrial radio. The remaining satellite service will only be able to charge what consumers are willing to pay. I say let them merge and I may be willing to finally subscribe because the combined programming will make it more appealing.