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You have to read between the lines to see it, but it seems even more clear now than it ever has. Sirius (SIRI) and XM (XMSR) are not going to give up spectrum to facilitate the merger. Mel Karmazin and David Frear both stated in strong terms that they are not going to do anything that is not in the best interest of shareholders and subscribers, and that they would walk away from the deal if it came to that. Giving back spectrum would harm both shareholders as well as existing subscribers.
Consider that Sirius and XM have promised that existing radios would work, and that existing subscribers would still have access to the quantity and quality of programming that exists today. If Primospere were to get 30% of the spectrum, how could Sirius and XM keep their promise? The same is the case for the Georgetown Partners proposal seeking 20%. In either situation, both subscribers and shareholders absorb the pain.
Simply stated, the Primosphere plan is a deal breaker. So is the Georgetown Partners plan or any plan seeking a swath of the current spectrum. They are all deal breakers.
Sirius and XM have committed to 4 channels each (a total of 8 channels). Perhaps that will become 10 channels total, but they are not giving up spectrum to accomplish this. Public Knowledge has sought several conditions in the merger process, and much of what they are seeking can be accomplished if the merger is allowed to proceed without further cannibalization. However, if Primosphere or Georgetown were to get their way, none of this can be accomplished. Georgetown recently committed to Public Knowledge and Media Access Project that they would facilitate the goals of each IF Georgetown got their 20% AND these groups got what they were seeking. This will never happen, and hopefully Public Knowledge and Media Access Project are aware of this. The Georgetown proposal is a deal breaker.
The FCC now needs to consider whether they want something or nothing. If the FCC wants A-La-Carte, Interoperable Radios, some Public Interest A programming, and Open Access, it will only happen with a merger. If the FCC steps into the realm of stripping away spectrum, they will squash the deal and then none of the consumer benefits will come to fruition.
Simply stated, the merger and all of the benefits will not happen if spectrum loss is part of the equation. The FCC, Public Knowledge, and others need to weigh the benefits that can be brought vs. the thought of having the merger fall apart, and a status quo situation (Sirius and XM with exclusive OEM deals, exclusive content, no interoperability, and no A-La-Carte) for current subscribers as well as future subscribers. There are 17 million existing subscribers that have a certain level of service right now. To disrupt that service or take away from it is something that the FCC should weigh carefully. Many existing subscribers are the very people that have committed to and are fans of satellite radio. To take away from these subscribers would be a disservice to them.
Georgetown’s Proposal - Deal Breaker
Primosphere Proposal - Deal Breaker
Public Knowledge Proposal - Workable
Media Access Proposal - Workable
At this point the cards are on the table. If this was not clear to people earlier it should be now.
Position - Long Sirius - Long XM
This article has 91 comments:
Sirius
Who has attority over them and how come there not doing anything? There clearly purposely causeing the downfall of these 2 companies for there own benifit. There all a bunch of usless scum who needs the fcc anyway what happend to freedom of speech!!!
Lofrano
This is nothing but a shakedown to which you have become a party to.
People have made a choice by PAYING for subscriptions.
No one has twisted their arms.
If they are unhappy they will no longer subscribe.
So will they vote on what's proposed? Can they vote on the options.
Is it true that all that is needed is a 3 to 2 majority?
Is there a basis for the FCC to mandate loss of spectrum?
What would be the reasons sited to back up such a proposition.
Do XM and Sirius have an arena to defend a position that the FCC is stepping out of bounds from serving the mandate relative to this merger.
I can't believe, if the FCC rules on issues that are not really in their sphere, or if they rule in a way that is "justifiably"... unreasonable, that Sirius and XM would not have recourse.
Otherwise the FCC would be acting in an Omnipotent fashion and where would the checks and balances be relative to this agency.
It can't be like the supreme court can it?
There has to be an appeal process relative to this agency,
but I guess that might have to work both ways if it was true.
Not for nothing, but it seems to me if they meet the workable options, that they may suceed with a 3 to 2 vote.
What is your read of the 5 members?
By the way..I bought some DSX this morning...better late than never. I also picked up some more NM.
your the f***ing man
American
You all should be embarrassed, and fired! You have lied and stalled enough. 180 day clock =a scam, by the end of the year=a Lie, by the end of the first quarter=another Lie. DOJ has proven this is not a monopoly! Allow the licenses to be combined and stop pandering to every group out there! They have no right trying to get my Company for free, I paid for shares of my company and you have no right to give anybody anything that I own. If the minorities want more radio exposure let them go buy a radio station with their own money. This is a free country, not a socialist state. So allow the combo with no concessions other than what the companies agreed to begin with. I hope you are all investigated for this disgrace, you are going far beyond what the FCC was intended for and now you are using this unassigned power to destroy American confidence in our government, and any company you choose to destroy. Your stalling of this decision has cost me personally and many more I am sure, I hope the companies file suit for your stall tactics, the empire state building was built in less time. And both companies have now lost the Millions/ Billions due to your indecision. You have no right to cost companies so much. This is America, free market capitalism, remember? This is not a necessity it is a pay luxury service. Mr. Martin do you have a Boss that oversees you, or are you a free-bird with no one to answer to? I would like to speak to your boss because no common sense decision can take over a year to make. I don’t know of any company, employee, or anybody that can take so long to do a job and still have a job after showing this amount of incompetence. I want you and you group all fired. Here is a link to a video that shows how irrelevant you group is; www.youtube.com/watch?...
So in ending you appear to be protecting your buddies at the NAB, and pandering to any special interest group wanting something for free. How about the Americans you supposed to be protecting? By the length of time you have been taking means one thing to this American and that is you are saying FU to ME. And I want you Fired. I will be sending this to anyone that will read it, the sad thing about that is that unless it is accompanied with a check, I assume no government official will read it.
Signed; One disappointed American.
As an investor I am relieved to think that the line is being drawn at the FCC negotiating table by my company. As a subscriber and consumer of satellite radio, 2 after market radios at home and in my car, 1 manufacturer installed in my 2007 Outlander, I am pissed at the thought of the FCC doing anything but approving this merger without any harmful concessions, especially after the DOJ decision.
Refusing this merger will snuff out innovative products that we may have enjoyed as paying customers from the new company. Once again the Democrats have sided with mediocrity rather than excellence.
As you have said before, and I agree, the 3 FCC republican members are willing to protect consumer interests by leasing spectrum, say 8-10 channels of bandwidth to "public interest, ie, minority progaming, with access to existing company technology. They, Martin in particular, has also said it would be in the public interest, for ala-carte programming, remove explicit programming if you choose to and not have to pay more for it: The companies have agreed and presented a plan. Price per subscription was another issue that was removed by the ala-carte plan. All of the other requests being made of the companies is someone trying to get something for nothing, and that is clearly not within the authority of the FCC.
For the 2 Democrats to change their job description because they don't like the DOJ decision, I feel, like you, that this will put their objections, ney votes, at risk down the road. They are looking as foolish as the 11 States Attorney Generals who also didn't like the DOJ decision.
If you are upset about how long this merger has taken do something about it. This is the link to Kevin Martin's email...
KJMWEB@fcc.gov
This is the phone number to the FCC...
1-888-225-5322
Make a difference. Make your voice heard.
Thank You - Disappointed AmericanMay 16 02:53 PM
For the comment and the link.
And for - pmelloMay 16 05:51 PM
For the information given for all to email or call to make a difference.
I don't believe that these notions to place additional demands on Sirius/XM are needed. This moronic way of thinking that all things should be given for free to those of color because of there historical past slavery past is "BS".
No further restrictions should be put in place for this merger to be approved.
I hope that if this approval is not met by the FCC that further steps are taken to sued and that it is heard by a higher court to over turn the FCC's decision [if it come down to this]. And that those within the FCC not only loose there jobs but that also the FCC is in some way placed in jeopardy of having a government investigation.
It's amazing to me that this has taken this long for this merger to be approved when all outside fears from the NAB and others just are not justifiable.
It a luxury item that is not going to cause anyone heart failure.
That's you McCain! Get ready to defend the FCC's inabilities. I am sure the Dems have already added Kevin to the long list of inept appointed officials. Way to go, Bush.
I hope that this article and the comments will get more press, because more people need to see this for what it is - robbery and sabotage.
On another note, why can't the FCC simply give out another license? After all, whoever gets this license will be so far behind XM/SIRI that it won't matter much. They would have no satellites (huge capital expenditures there), and they will have no OEM penetration due to deal exclusivity between the car companies and XM/SIRI.
I will say it again THE 3 REPUBLICANS ARE FOR THIS MERGER, THE 2 DEMOCRATS ARE AGAINST IT. Instead of writing Kevin Martin and telling him something he already knows. Try writing the 2 democrats and tell them enough, with the meetings that have gone over and over the same thing. Enough with the investigations as to what the DOJ did, by approving this with no conditions. TELL ADELSTEIN IT IS NOT HIS JOB TO FIND OUT IF THIS IS A MONOPOLY OR NOT. Tell him he may disagree with the DOJ, but it is the DOJs job to find if a company is a monopoly or not, NOT HIS. Tell the 2 democrats to stop trying to get conditions that are to much for SIRI/XMSR to accept.
When you write Martin you waste your time and his. Why, well I will put it as simple as possible, so all the dumb asses get it. If somebody wrote you to say you need eyes to see, are they telling you something you dont already know. Martin knows this has gone on for far to long, He has been for it, for at least 6 months (remember when he said he sees a decision on this by the end of the year and also by the end of the first quarter) from that you can only conclude at this point, that he at least was ready himself, to vote to approve this. SO GET YOUR HEADS OUT OF YOUR ASSES AND WRITE THE PEOPLE THAT ARE RESPONSIBLE FOR HOLDING THIS VOTE UP. Qiut writing Martin and telling him shit he already knows
Out Loud
It seems to me we keep selling ourselves out. The FCC can drag their feet all they want, but I would think after so many months of raking in the money from all the terrestrial interest groups these pompous asses would take the money and run...approve the merger as is and stick it to all the interest groups and lobbyists that
donated our hard earned dollars...after all isn't this what our politicians do best? Come on, we all know what's going on here. When are we going to wake up...after all who was it that said..."a government of the people by the people for the people"...
"We here at the FCC are only interested in legislation to the highest bidder. Furthermore, we hate Howard Stern and loathe Bubba the Love Sponge, and since Clear Channel and CBS were so kind as to line our pockets even further than the ridiculous "fines" we imposed on them for the aforementioned entertainers, we are trying to appease these two companies in the hopes of doing more lucrative business with them in the future. We are, after all, an independent government agency, not elected, but appointed by, and solely answerable to the President of the United States, who is far too busy these days to pay any attention to what we may be up to.
"Therefore, we are doing everything in our immense power to destroy this deal so that Clear Channel and CBS can seek their revenge on Mel Karmazin, Howard Stern, and Bubba the Love Sponge by bankrupting Sirius and XM so that Clear Channel and CBS can buy them up for pennies on the dollar. Rest assured that when those purchases come up for our review, they will be approved immediately."
I wish someone in the media would stop belly-aching and come right out and openly call for an independent investigation into the obvious back-room closed-door deals going on here.
This is nothing short of criminal!
On another note...what would happen if XM/SIRI were to simply ignore the FCC and go ahead with the merger, using the DOJ as a crutch. Can they pull it off?
gekko13, I would agree that would be the case, But it is even less important to write to somebody to tell them something they already know then to write to somebody that is against what you want. To be honest I do think it will not change anybodys mind ether way the republicans on the board have their ideology, and the democrats on the board have their ideology. The differense here is most agree and that includes democrat shareholder and subscirbers, with the republicans on the board. Where I get so pissed off is the democrat shareholders and subscribers, still try and blame the republicans on the FCC board for this debacle. Put the blame where the blame lies with the democrats on the FCC board. I can tell you this much it is not the republicans saying we should give 20% of the spectrum to George Town Partners.
You want to know the differense between republicans and democrats? Both see 2 men, one has 2 cows and the other has none. The democrat says well we cant have this we need to take 1 cow, from the guy that has 2 and give it to the guy that has none. The republican sees the same thing and says *so*. The point is democrats think government should force charity, republicans think charity should be voluntary.
if it doesn't happen how will sirius find the capital needed to put new birds in the sky to replace the ones they got now with decaying orbits?
i liked to commercial i saw on battlestar galactica friday evening '17 million listeners', not yet.
i'm so glad i bought in @6 and got out of XM @29.
the only good thing XM has now is O&A.
FRUNNNNKKUUUUUUSSSSSSS...
Also, X/S should stipulate that after the merger it has the right to cancel and replace any station that has less than 3% subscription by a la carte subscribers.
For instance SIRI says we will lease it for 100 million a year. GTP comes back and says that is to much we wont pay it, we cant make a profit if we pay that much, we will give you 50 million. If SIRI says no, then GTP can go to the FCC and say SIRI is not holding up their end of the deal. They want more then we can possible pay and stay in bussiness. Even though FMV is 100 million because of what SIRI/XMSR has put into it, GTP can say well you cant ask us to lose money on this deal. Now normally GTP would just walk away and move on, but because the FCC has told SIRI they have to do this, SIRI we be forced to take alot less then what the spectrum is worth. At the same time GTP gets a bussiness on a silver platter.
Sirius Fan, look at my post above on SIRI to killerkaul at 5/19, 1:32 PM. "No news" is all it takes for both of these stocks to float down, although todays volume was pretty normal, watch out if the volume drops off, they'll trade lower still.
163888...Science aside, oil prices at these levels is more of a trigger than the science... All the talk about approaching "Grid Parity" with coal and gas and new money anticipated from the inevitable Democratic President with a democratic congress is a pretty good stimulus for these stocks and their "GREEN" too. The new democratic congress is going to remove oil subsidies and feed these fledgling green companies whether they pan out or not. There won' be a President elected who would dare to veto that bill. Even McCain, especially if we have $4/gal going into Winter. If oil prices tank so won't these companies, but that's about all that going to stop them in the short term, (now 'til the end of the year)
I was unsuccessful with the toll free number.
Certainly as I have posted before on Tyler's site-----spectrum that Siri and XM own should not be given away to Georgetown Partners or to any other entity that want's a piece of the business they did not build.
It is a shame, a real shame, that a few Congressmen and a few Attorney Generals aligned with the Democrat Party made an attempt to block this merger approved by the DOJ by lobbying the two Democrat members of the FCC------a real shame that we are being denied this world-class
system.
I was so very proud that Sirius-Satellite broadcast the Nascar, the NFL, the Pope's visit, the Frank Sinatra Special and so much more.
Also my convictions will only go so far, so if DRYS gets down to 98 I will buy back 200 shares. I hold that veiw until July then I would wait til Jan. or 60 something to buy back.