A recent article in the New York Post isn't very forgiving of the Sirius-XM merger, dramatically (in classic Post-style) highlighting Mel Karmazin's salary and how it would be taken into account when considering the merger.

"Details of Mel's pay package couldn't have come at a worse time for Sirius and XM," said Sanford Bernstein analyst Craig Moffett.

"Their credibility is already stretched pretty thin on Capitol Hill after weeks of anti-trust grilling. This will add fuel to the argument that their merger attempt is a way to enrich management rather than listeners."

At least, that's fuel to the fire that the NAB would love to feed. The reality is that Karmazin's compensation was likely put into place in his original contract back in 2004 when he signed on to Sirius. But who needs reality when you've got drama? Check out this ridiculous quote from an NAB spokesman:

"This outlandish pay package confirms that the proposed monopoly Sirius-XM merger was crafted mainly to enrich the companies' CEOs and their close friends on Wall Street," said NAB spokesman Dennis Wharton. "The notion that consumers or small shareholders would benefit from a government-sanctioned monopoly is pure fiction."

Apples... meet Oranges.

The unfortunate thing is that regardless of how little this should affect the decision by the FCC and DOJ - Peter Lauria at the NY Post is absolutely correct... the negative attention this stirs up certainly doesn't help.

[New York Post]

Bloomberg has a report today that discusses XM's "rogue" repeaters and how they are adding to the scrutiny over the Sirius-XM merger.

The article is sure to focus on the fact that at least a third of XM's 800 repeaters are in violation and these serve 42 percent of XM's network. It goes on to paint a bleak picture about the situation, even though they do allow XM spokesman Chance Patterson to state that "XM voluntarily disclosed these variances to the FCC" and has taken "unilateral action to eliminate many of them."

Regardless, it's brought the focus of U.S. Representative Edward Markey, who chairs the House Telecommunications and Internet Subcommittee.

"What is the expectation it will follow through or fulfill any public interest conditions?" Markey, a Massachusetts Democrat, said in an e-mailed statement.

And you can bet all of this comes to the glee of the NAB. They even put the article front-and-center in their daily newsletter today.

"Given their repeated lack of candor in dealing with the FCC, it is astonishing that XM and Sirius would now seek a government-sanctioned monopoly,'' said NAB spokesman Dennis Wharton, in the article.

Astonishing indeed, lest we forget all about that payola scandal. 

[Bloomberg] 

Looks like the NAB's hypocrisy is being picked up by the media now. Yesterday's Wall Street Journal features an article, What's the Frequency, NAB? that questions the NAB's motives behind opposing the Sirius-XM merger.

I really like this piece, mainly because it cleanly and clearly spells the whole situation out:

"No one knows whether the public will ever really take to the pay model, but it's not the role of the government to help the NAB smother a fledgling competitor in the crib. This appears to be a merger of desperation more than anything, and blocking it could well result in no satellite-radio providers and thus fewer listening options for consumers."

Oh, and aside from all that, I do relish in seeing the NAB exposed for what it truly is.  

[Wall Street Journal] 

Terry Young is the weekday afternoon DJ on XM's 60s on 6 channel (ch 6). He's also the creative force behind an XM show called "Sonic Sound Salutes," which airs on the same channel, every Friday from 4pm to 9pm ET.

Each show pays tribute to an influential radio station from the 60s. Terry "transforms" XM's 60s on 6 channel into that radio station just for the afternoon.

On "Sonic Sound Salutes," Terry plays the station IDs, radio jingles, and the real DJ airchecks from that era. When Terry opens his mic, he talks about the station, the local city, and what it was like living there in the 60s (he literally does a ton of research before the show including interviewing people who grew up there during the time). Terry also takes live phone calls from people who remember the station during its glory days.

"Sonic Sound Salutes" has generated a fair share of press for XM over the years (Young has been doing broadcasts since 2004). Like today's Buffalo News which waxes nostalgically about this afternoon's tribute to WKBW.

Even if you're too young to remember the 60s - like myself - you should listen to this show at least once. It's an incredible journey back to a golden age of terrestrial radio, an era (unfortunately) long behind us, and well worth the listen.

MSNBC has just announced that it will drop its simulcast of the "Imus in the Morning" radio program, responding to growing outrage over the radio host's remarks about the Rutgers women's basketball team.

"This decision comes as a result of an ongoing review process, which initially included the announcement of a suspension. It also takes into account many conversations with our own employees," NBC news said in a statement.

Remember that MSNBC still only simulcasts Imus' show. Imus broadcasts from WFAN-AM in New York City and is syndicated nationally by Westwood One, both of which are managed by CBS Corp.

Not for nothing, but you know he's going to get fired right? That's just my opinion, but this is a path that is very hard to turn back from.

[Yahoo! News] 

It looks like Imus isn't out of hotwater, in fact it looks like it's just getting hotter.

General Motors and Sprint Nextel have suspended advertising on Don Imus' show, joining Staples, Procter & Gamble. and Bigelow Tea. If those A-list names aren't bad enough, add American Express to the list.

"This is a very fluid situation, and we'll just continue to monitor it as it goes forward when he returns to the air," said a GM spokeswoman, adding that GM would continue to support Imus' charitable efforts.

Meanwhile, the former head of the NAACP and a director of CBS Corp, Bruce Gordon, has called for Imus' firing.

"As an African-American, I believe that Imus has crossed the line, a very bright line that divides our country," said Gordon. "His remarks are so significant that I believe that the right outcome is for him to be terminated."

So with the swarm of controversy swarming around, The Motley Fool asks "What if Imus was on Satellite Radio?" The Fool notes that satellite shock-jocks Howard Stern and Opie & Anthony wouldn't endure the same level of criticism that Imus has. They also call this the end of terrestrial radio as we know it.

Stern and O&A have both had their terrestrial radio offenses, but satellite not only allows for adult language, but for "the opportunity to expand and experiment before a receptive audience of subscribers."

The Washington Post has picked up on the recent TMF report that criticized the Carmel Group limited view of the audio entertainment market.

"The FCC and DOJ aren't in the business of looking into some crystal ball and predicting some technology in the future," said Jimmy Shaeffler of the Carmel Group. "Somewhere down the line, maybe 5 years, 7 years or more, XM and Sirius can come back to this argument and possibly prevail."

"My view is that the criticism . . . doesn't jibe with the reality of the market," Farrar said, noting that almost 50 percent of iPod users have purchased accessories to allow for in-car playback.

One important thing that the Washington Post has highlighted (and something that I neglected) is that TMF Associates did not take a position for or against the merger - but rather said that consumers have choices, including not to subscribe to satellite radio at all.

[Washington Post] 

CBS Radio and MSNBC have both said they are suspending Don Imus for two weeks after his reference of the Rutgers women’s basketball team as “nappy-headed hos.”

While CBS Radio issued the suspension without a statement, MSNBC said "our future relationship with Imus is contingent on his ability to live up to his word."

The suspension begins next Monday so as to air the previously scheduled Imus radiothon in support of the Tomorrow's Children's Fund, the CJ Foundation for Sudden Infant Death Syndrome research and the Imus Ranch planned for Thursday and Friday.

Imus continued to apologize on his show as well as on the Reverand Al Sharpton's own radio show, who also continues to call of Imus' firing.

So what's your feelings on this? Do you think Imus deserves to be fired? And if that does happen, should XM or Sirius offer him a job? 

[MSNBC]

Today's Wall Street Journal featured an in depth profile on XM Satellite Radio Chairman Gary Parsons. It's really a great read, especially for those who may not be familiar with Gary Parsons' background.

Favorite quote by Parsons:
"Satellite radio has been enormously successful for almost everybody involved -- consumers, the government got what they wanted out of it, programmers, car companies -- except for shareholders," he says. "I'm not going to rest until they're successful too."

It's a wonderfully transparent statement (and a necessary one).

[Wall Street Journal]
Thanks to everyone who sent this in!

Looks like the media is picking up on the inconsistencies in The Carmel Group's analysis. The New York Post, who incidentally had the exclusive on the Carmel Group anti-merger study, features a quick follow up article highlighting my "Busted" post.

As always with media interviews, only a snippet of the conversation makes it to print, but the quote Peter used I think effectively sums up my feelings on the situation. Of course Jimmy Schaeffler is going to defend his position, but I think the message was conveyed effectively.

One thing I want to point out:
I have no problem with research companies changing their position. It happens all the time because the marketplace evolves (hmm). But the fact that he used such harsh wording like "this position is ludicrous" in his report, without any acknowledgment that he took that exact position himself in an earlier, non-commissioned article - that's really what irks me.

Anyway, check out the NY Post article, it's a quicky but pretty cool to see the word is getting out about this. 

[New York Post]