Can the NAB really overturn the Sirius-XM merger? - Orbitcast

David RehrA former trial attorney for the FCC has suggested that the NAB could attempt to overturn the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. - if officially approved - but is it really possible?

Orbitcast's discussions with an antitrust lawyer suggest that the chances are slim-to-none that the NAB can stop this.

Don't tell that to the NAB though. In a recent statement, NAB spokesperson Dennis Wharton said: "Given such overwhelming opposition, we're not convinced the final chapter of this book has been written." Suggesting that the NAB may already have an appeal in the works.

WSJ Deal Journal has more details on how the NAB could try to apply the brakes:

  • Appeal to the FCC by filing a petition, though the Commission is unlikely to second-guess itself, says Bryan Cave LLP lawyer Jerome Boros.
  • Push anti-deal legislation - odds are 500 to 1 that would happen according to Boros.
  • Take it to the US Court of Appeals, which was highlighted yesterday. This serves has the NAB's best chance, says Boros.

But does the NAB really have a case?


An antitrust lawyer, who asked to be identified as Mark S., told Orbitcast that an NAB suit would be frivilous. Since there was no appeal for the DOJ decision, and the time to do so has expired, then antitrust is not a concern. The NAB can call it a "monopoly" all they want, but the DOJ has determined that it's not one.

The only aspect that the NAB can challenge, according to the antitrust lawyer, is the license transfer itself and whether the FCC's decision was "in the public interest." This would be subject to a "arbitrary and capricious" standard - the most highly deferential standard there is and almost impossible to overcome - especially where the record is so volumninous and there is a split in the vote.

Finally, Mark disputes the notion that the decision wouldn't be delayed until a Democrat is in the Whitehouse. The only way to stop the decision would be with a restraining order and an injunction against the FCC from voting and approving. According to the antitrust lawyer, in the entire history of the FCC an injunction has never been issued against a ruling or decision of an administrative branch.

Only Congress can accomplish such a injuction, and it takes both House and Senate votes - and they're about to go on break for summer.

In other words, once Tate votes and the official tally is in: done deal.

39 Comments

YOU LOSE! GOOD DAY SIR!

I believe it would just continue their embarrassment to continue to lobby against this merger. I believe they lost the war. The NAB works for terrestrial radio, mostly. To continue to fight this decision would be more than an uphill battle. They would have to overturn the decisions of both the DOJ and the FCC, something that isn't likely to happen, IMHO.

The FINES help take the wind out of NAB's sail. It's the only other legal issue they had. Now that's taken care of. Fines are actually good for Sirius/Xm.

NAB - Nasty Abusive Bullies ;)..hahahaha..

When is Tate going to vote ,come on already I told you ,flowers are on route.

Perhaps.

Rehr:$20,000,001

Tate:I'm sold!

Why in 2008 do we still have lobbyists and money involved in the loop? I mean its obvious this system doesnt work and the little guy (Sirius XM) gets screwed by the big pockets guy (Terr. Radio)...

What is Tate waiting on? I mean its not like she had 500 days to look at this deal?
You know what can be done in 500 business days?
- A medical student begins rotations
- A law student completes their education
- A financial system and 2 subsequent releases can be implemented
- Both WWI and WWII are fought

I mean this is just ludicrous.

where the AIDS virus when you need it most?

OH REALLY THEN WHY THE FUCK IS SIRIUS DOWN 09 CENTS.....THE STREET ISNT EXACTLY HANDING OUT FUCKIN CASH.....IVE OWNED THIS SHIT FOR OVER A YEAR.....IT SHOULD HAVE RALLIED I DONT KNOW MAYBE FUCKIN 50 CENTS!

OH REALLY THEN WHY THE FUCK IS SIRIUS DOWN 09 CENTS.....THE STREET ISNT EXACTLY HANDING OUT FUCKIN CASH.....IVE OWNED THIS SHIT FOR OVER A YEAR.....IT SHOULD HAVE RALLIED I DONT KNOW MAYBE FUCKIN 50 CENTS!

OH REALLY THEN WHY THE FUCK IS SIRIUS DOWN 09 CENTS.....THE STREET ISNT EXACTLY HANDING OUT FUCKIN CASH.....IVE OWNED THIS SHIT FOR OVER A YEAR.....IT SHOULD HAVE RALLIED I DONT KNOW MAYBE FUCKIN 50 CENTS!

post it 3 more times please

stop being a cunt

I SAID -- GOOD DAY!!!

Let's wait until Tate signs off officially before you morons get too excited. Of course, it's up 30% in two weeks. But go ahead and ignore that.

Too bad Struble, Rehr, and Ferrera! You motherfuckers are out of luck! Your shitty HD Radio, which doesn't even work, is now history. Now, broadcasters have NO incentive to upgrade to HD, or if approved, upgrade FM-HD for the 10db power increase, which will cause many stations to lose 50% of their analog coverage. The HD Radio scam is over!

If and when Ms.Tate votes and our fight is behind us as far as Satrad is concerned, could we turn our geekly powers towards exposing the NAB and the scum on Capitol Hill that took the bribes/lobby money that made this all possible. If we post their dirty deeds maybe some of them will be selling Real Estate come next election instead of misrepresenting us.

"You lose. GOOD DAY SIR."

WRONG again blind, ignorant, (claimed) satradio fanboy.

AC DIDN'T lose
Terrestrial radio DIDN'T lose

It might take some time for everyone to grasp reality after the ignorant get done with their "victory" dance. But satellite radio and satellite radio subscribers are the one who lose. Why? The industry is stronger with 2 providers than just one, subscribers benefit greatly with 2 providers who directly compete for top billing.

Only the blind, and ignorant are posting cheers on the current "merge" MONOPOLY scheme updates. RA RA blind and ignorant now (IF Tate votes to approve) we as subscribers will no longer have a choice in providers when it comes to satellite radio. By the way blind and ignorant is 100% justified as a label for the minority here, not one of you can give a list of CONCRETE items this "merge" brings to benefit subscribers, because in the big picture, in reality there is none. This "merge" scheme does not benefit subscribers.

We all, as satellite radio subscribers lose with "merge".

If the DOJ sees nothing wrong with it, why do you?

Because you're NOT a sat subber.

Sorry terrestrial radio, you're gonna gave to stop being litigious and actually offer a service that people want. You have to actually COMPETE instead of COMPLAIN.

NAB does not need a case to slow the deal

Please make this the LAST article with this Donkey's fucking ugly ass mug showing as the pic. I really can't stand looking at him and hearing about all his pathetic bullshit, so I hope he just crawls in a fucking hole and rots with his fm radio.

Official vote will be between today and tomorrow, XM has refinaced and that's why stocks got smashed after high opening.

Sirius and XM will likely close the deal by the end of this weekend or early next and I'm sure have a conference call by end of next week along with Sirius 2nd quarter #'s.

The 20 million masked as fines was all political as this really is a license transfer fee, but let the Nab believe its a fine... hahaha...

It's over people, now we start fresh in August - I'm ecstatic !!

5 bucks within 1 year.

Does NAB remind you of a spoiled brat? The more NAB is told 'no', the more it whines, fibs, and undercuts in effort to slop HD digital jamming all over AM&FM.

Listeners checked out HD radio and said, 'no'. Manufacturers checked it out. Some said 'no' while a few produced HD radios, only to be told 'no' by listeners and as well by retailers who couldn't sell HD stooge sets.

So, like a spoiled brat, NAB tried forcing its odd HD way into Satellite Radio, where no one wants it.

Answer? The same, 'no'. So, with tedious predictability, TeamBLOC makes inflated claims of about 'worldwide HD acceptance', how HD creates a 'new golden age of radio', and how HD surely will cure the Heartbreak of Psoriasis - if it hasn't already so done.

Where's this pressure coming from? Who wants HD so badly that they're willing to wreck radio, further shrink dwindling audiences, and permanently alienate long loyal listeners against a backdrop of jamming, denials of jamming, and overblown claims?

When will this stop? Listeners, retailers, manufacturers and most broadcasters - with the exception of a few BigCorpseorate crony-kasters whose stocks reflect listener trust - have all said, 'no'.

Thank you, FCC, for saying no. Keep it up. If NAB/iNiquity wants to create some 'inevitable digital future', let them do it on the level, on their own band, where listeners can choose for themselves, rather than have HD shoved down SatRad listeners' throats, or worse yet, jamming vital AM and FM broadcasts.

Or was that the idea? Will DOJ act against what many see as 'chicanery'? Who can say?

Paul Vincent Zecchino
Manasota Key, Florida
24 July, 2008

HD Radio as the FCC approve technology for digital radio is far from over. Terrestrial radio has even more incentive now to upgrade to HD Radio and quicken the change-over from analog to digital. HD Radio broadcasts are available today to more than 83% of Americans. It has also been reported that as of June 2008, over 1,700 AM and FM stations are broadcasting with HD Radio technology. HD Radio programming is subscription-free and supported either by commercial advertising or by membership as in public broadcasting. Although HD Radio is promoted as a "cost-free" alternative to satellite radio.

"TV coverage will be provided by ESPN and ESPN HD. Radio coverage for the 2008 Allstate 400 at the Brickyard will be provided by the Motor Racing Network (MRN)." ZERO need for the Sirius Nascar channel now. As pointed out Terrestrial has the cash and content, talent and programming are returning, on the flip side satradio has billions of debt due soon and is losing content, talent and programming. With this "merge" subscribers will be paying more for less.

Is his Matt Damon playing the role of an attorney, sure looks like him?

AC... Face it, HD Radio is a joke. I looked into it in my area. At the time, a receiver was running around $150. I recently checked hdradio.com and saw that there are only about 3 or 4 additional channels I could pick up if I had an HD Radio receiver. All of them were channels that I either wouldn't listen to or have a better alternative to on satellite and Internet radio.

Well even if the NAB found a way to get a temporary injunction against the FCC decision (temporary injunctions are still possible, but permanent ones are very difficult as Ryan noted) -- even if just to delay the merger from closing until next year, because that's all they can do... because they won't win in the end, but perhaps they can delay it long enough into next year?

Well if they did... XM and Sirius just threw a wrench in their plans, IMHO.

By XM closing on the recent debt placement for $700 million -- it is contingent on the merger closing. Now there's a significant amount of money involved through lending institutions... and everyone knows money rules the world. The NAB wouldn't be able to delay very long -- as XM could point out there is a large amount of money in limbo here. Any Judge would be hard pressed delaying this thing by 6 months, just to hear why a temporary injunction should be permanent... the Judge would have to expedite it along, IMHO.


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I agree with your Mark S. guy. Plus the NAB has to pick its fights with the FCC and even if they had a basis for seeking an injunction, the FCC would have a long memory, even for a bunch of dummies.

HD Radio eats dick:

The Slow Growth of HD Radio

Written Jul. 23, 2008 by Tom Webster in HD Radio with 1 Comment

Lots of activity this week on the HD Radio front, led off by Chuck Taylor's excellent piece in R&R (which quoted some Edison data) about the progress of HD radio adoption in the US. HD has certainly been a lightning rod for flames this year--note the differing headlines on these two sites, PC Week and the Washington Post, that use the same Chuck Taylor story!

Chuck was nice enough to interview me for this piece, which led Jon Gordon, from the excellent program on American Public Media, Future Tense, to call me and chat further about the progress of HD Radio adoption and what my thoughts were on the limiting factors behind its slow uptake. I've linked the interview below--luckily he called me in the early morning while I still had my good "radio voice" working :)

In both Chuck's piece and the Future Tense interview, I tried to establish what I thought were the real issues behind HD's slow growth. The central challenge is that you have a national "product," the HD Radio Receiver, with a national rollout and national messaging. The programming, however, varies considerably from market to market, and very little of it is driven by consumer demand or even consumer insight. Some markets have great HD programming, but here where I live, not so much. So it is hard for the typical consumer to get excited about HD when there is no clear content offering to sell. Soma FM is the same great online radio wherever I listen to it. Howard is Howard, no matter where your Sirius is located. But radio is trying to package and sell a national answer to these challengers with no consistency in product. It is as if we are trying to install Coke machines in every market, but some we forget to fill, and in others we only stock Mr. Pibb and RC Cola.

HD has to start with great, new digital brands first, with distribution over HD receivers AND online, and at least some of these have to be big, high profile national shows. Radio's goal should be compelling digital brands for the future, and in that context HD radio is just one means of distribution. I think there has been a lot of negative energy spilled over HD, just as there have been a lot of stakeholders who have led themselves to believe that HD is their "answer" to online and satellite radio competition. Our answer to online competition should be great online programming--additional, free distribution over the HD airwaves then becomes a strategic advantage. It isn't an "either/or" proposition.

There are simply too many "jukebox" HD-2 channels. At a recent summit on the topic, I heard one industry executive note that HD is taking time, but so did FM. The implication was that HD will follow the same natural progression. I think that is a mistake, and the "jukebox" issue exposes it. When FM was beginning its rise, free music was an economically scarce quantity--the only source for free music was the radio, so FM had greater economic value as one of its sole providers. Today, free music, in the form of online jukeboxes, file sharing and peer-to-peer music networks, is no longer scarce, but an economic commodity. So in order to provide real value (enough value to monetize), radio can't remain in the commodity business in that environment. The industry has to create value through the creation of strong, passionate brands that may be augmented by music, but that stand for something more than "one great song after another." One example is "The Strip," in Dallas. The programming on The Strip does a wonderful job of not just providing music, which is a commodity, but evoking a sense of place and a mood that is truly unique. The answer for side channels is not to replicate online jukeboxes (how many of them are really successful, anyway?) but to build unique brands that generate true passion.

The solution is not a programming issue but an HR strategy issue. Building those brands takes the time, resources and energy of radio's fantastically talented programmers and creative staff--all of which they don't have, because many are already programming 3-5 broadcast stations. So often the HD-2 channel gets relegated to the back burner. It's simple math, really--if a programmer spends 40+ hours a week making their broadcast programming compelling, what makes the radio industry think we can toss off HD-2 channels over lunch breaks? It is an old business school adage--you get what you measure. When the industry starts measuring itself on the quality of its HD-2 programming, then it will devote the resources it needs to create truly compelling brands, and get them in as many soda machines as it can.

AC,

Here is why you are wrong. Last Tuesday, i couldn't get the All-Star game on local radio. But I could get a re-run of Sean Hannity. That is what is wrong with terrestrial radio. With Sat. radio, if you want to listen to the game, it will be on.

And now with merger, you will have access to ALL the games with one sat. provider.

I loved the option from yesterday - wait out the storm until a Democrat takes over the White House and appoints a Dem to take Kevin Martin's place...like THAT'S a certainty!

I'm a true Independent, and I still have no idea who I'm going to vote for at this point. McCain could very well kick Obama's ass during the debates...and it's seriously misguided to assume a quick withdrawal from Iraq will solve any problems in the region.

Anyway, nobody is going to spend millions of dollars on the possibility of an election...it's too uncertain.

You know nobody has ever answered my question. I have a lifetime sub to Sirius - will I be rewarded by a full boat sub to Sirius/XM?

" Building those brands takes the time, resources and energy of radio's fantastically talented programmers and creative staff--all of which they don't have, because many are already programming 3-5 broadcast stations."

Exactly what satradio did when they paid big bucks for instant name talent only to be put into major debt, and then the desperation of needing a government bailout. There is nothing wrong with building brands or the time it takes. Like everything MLB, NASCAR, NFL, NHL, Howard Stern were not brands over night. HD Radio is taking it's time for long term success, satradio went for instant success and has nothing to show for it but HUGE DEBT.

HUGE DEBT, with talent, content and programming moving on as satradio can't afford to pay them come contract time.

HD Digital Radio • IT’S TIME TO UPGRADE!
HD Digital Radio. It's here. It's local. It's free. DISCOVER IT!
www.hdradio.com/

xm blocked facebook for its employees. can't log on. we are all pissed.

They don't want the merger so if the merger is oked then they will try to keep it in the courts for....

What do xm employees need facebook for? Sounds as if you are wasting a for profit companies time on facebook and werent the only one. Nothing wrong with a company to take that small step to increase productivity.

jeff u r a bum. u r on this site wasting ur companies time not being productive too. hypocrit = jeff.

The NAB would be better off using their money to figure out how best to compete with satrad and improve their product instead of whining about it and threatening additional court action.

Can the NAB really overturn the Sirius-XM merger?... Does a bear shit in the woods??

If the suit would be frivolous, NAB will file it...

The NAB gains nothing no matter what Sat radio is not going away.

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