If the FCC doesn't approve merger? "Sirius will sue" - Orbitcast

If the FCC doesn't approve merger? "Sirius will sue"

| 36 Comments

Mel Karmazin
There's an interesting comment from Sirius Satellite Radio Inc. CEO Mel Karmazin in an interview with the Chicago Tribune:

Tribune: What happens if the FCC does not approve the merger?

Karmazin: Sirius will sue.

A strong response. I wonder if it means that if the XM-Sirius merger is not approved, it will be left up to the courts to decide.

[Chicago Tribune]
Thanks Tim!

36 Comments

While I don't doubt he means it, it would be a really bad turn of events for the future of sat radio.

Putting satellite radio on hold waiting for litigation to play out, spending more 10s of millions that neither company has to spare, all in a roll of the dice for this bogus goal of synergies that may or may not materialize, it would just be a really lousy outcome.

Wow....for a guy who says that the 2 companies are doing fine without a merger, he sure seems determined to get one through!

Agree with Stack, that this would be a bad outcome for SDARS.

I agree. It would be very bad for the industry as time dragged out and millions were spent on what would likely be a futile effort.

It begs the question why is Mel so intent on this merger. Taking it to the regulators in one thing, but taking it past that to the courts borders on somthitng else. Are the financials of SIRI and possbly XM so bad he feels he has to do this? One has to wonder.

If the merger doesn't go through, and Mel/Sirius decide to sue, does XM have to follow suit, or join Mel on this path of total self-destruction?

After the positive Whole Foods court decision how can he not say he would sue? Don't you guys get it? Its tactical -

Its like saying "Hey FCC and DOJ, wanna turn this down and lose in the courts again". I don't think so......

Apparently, XM is Mel's puppy dog at this point, so I suppose they'll do whatever he tells them to. "Why, if Mel thinks we ought to sue, I guess we should go along with it, he is the radio genius after all".

I just don't know whether I've ever seen a company self-destruct the way XM has.

yes...their financials are that bad. given how much they each are losing each and every quarter, they are up against the clock; how much longer can they go losing money before the cash-coffers run dry?

i commend Mel's comments here...if you're going to go down, you might as well go down kicking and screaming...especially if there's an off-chance that you might win.

I'm very injured. Sew everyone.

I'm very injured. Sue everyone.

What you guys are forgetting is that Sirius already has a high powered lawyer working for them - Howard K. Stern


wait... thats a different Howard Stern? My mistake.


This could get expensive.

It's simple. Mel knows Sirius and XM have a strong case for merger. To be denied by the FCC would be ridiculous. It would be as ridiculous as Mel taking it to court.

There is only one realistic outcome to the combination of SIRI-XM, given the technological enviroment in this country, approval.

Simple.

But why threaten to sue before they turn it down? By throwing down, Mel just pisses the FCC off.

I don't think the FCC would care about losing in the courts. The gubment has infinite resource when it comes to lawyering.

Sirius and XM, by their own accounts are struggling businesses who "need" the merger to survive. I don't see them having the resources to drag this into a prolonged court battle.

If the FCC turns the merger down, and Mel sues, he'll be dragging Sirius and XM right down the toilet. Both companies will be toast.

Unless XM decides to eat the cash to bail from the merger, and let both companies go their merry way.

Suing is a sure path to self destruction

The only winners in court are the lawyers. Look at Microsoft. They essentially won in their court case, but it has taken them over five years to even start their recovery, let alone a full recovery. It was a $25 stock fron 2002 to just recently when it bumped to $35, a far cry from the glory days of $100+ a share. I'm taking a positive outlook with an approved merger. The other side of the coin isn't pretty.

The FCC needs to be held accountable.

"Wow....for a guy who says that the 2 companies are doing fine without a merger, he sure seems determined to get one through!"

Goddamn that is a brilliant observation. Goodness gracious.

Maybe because he knows Sirius is dead in the water once Howards contract runs out. Then they are stuck paying him even more money they can't afford, or they lose him and likely lose many of his subscribers. Sorry but BtLS and Ferrell are not bringing in the big bucks on subscribers and advertisers. Howard is. He is Sirius and without the merger, they will likely go in the toilet.

I would sue. Look at all the lost revenue ofrm the hold out for new combines stereos and the loss of xmas revenue as consumer wait for the outcome. If they were going to decline it they could have done it monthgs ago instead of dragging this out and causing such great delays.

AM/FM is the monopoly here boys. XM-Sirius is the underdog and if the FCC crushes competition to protect AM/FM/HD than I would sue too.

A suit, given regulations that provide that the two companies will not merge, would be a tremendous waste of time and money. The FCC can merely stand by the conditions that were put in the licensing of sat. bandwidth, as there is no requirement that they change their regulations to allow a merger.

funny how fast and easy all the oil companies merged and now 3.50 a gallon gas

clear channel buying up every radio station it could get it's hands on

but sirius and xm merging would bring down this country, LOL

priorities

This proves that the merger is for sirius, not for XM.

Obviously this means that the merger will not be approved, and that Mel is making one last attempt at screwing the consumer over by spending millions of tax dollars in court on this case just so he can own a monopoly and make himself and his shareholders RICH. I'ts all about the money.

No wonder Anonymous Coward posts with such a screen name, he doesn't want anyone to know who is behind the idiotic comments he makes.

Mflynn comments are just as dumb.

This Mflynn guy is really making a name for himself

Sirius has been cooking the books for so long that Mel needs this merger or it'll all implode around him.

All those "subscribers" are really just trial subs. All that "revenue" is really just deferred debt. And it all ends in three years when Howard settles down with his horse-faced gold digging fiancee.

Out with a bang.

they sued for maytag merger or was it whole foods?? In any case the courts overruled the FCC so...why not

Of course, the other way to handle this is for the FTC to okay the merger on antitrust grounds and then have the FCC tell the company that if they merge, they'll have to stop using 12.5 MHz of the SDARS band within a certain time frame. That leaves the extra spectrum free for another player to emerge. Maybe the NAB can start their own satrad company.

--Nuzz

There are a lot of brilliant tacticians here, you guys should be fighting the war with this acumen not spending your time on Orbitcast.

Mel's comment is perfectly logical, as it would likely be found that Sirius and XM are not forming a monopoly and the DOJ would have another blackmark for poor judgement. This merger will go through without a problem likely as the fight to prove anti-trust would be likely lost by the government. Saying "we would sue" is just a natural reminder that the government would be dragged through another court battle that would be ultimately lost.

I agree with all of you that SDARS would be really in a bad place if this all goes to the courts, not because they wouldnt win, but because people who are casually interested might not buy in because "satellite radio is probably going to fail cause they are in a lawsuit" which will be the informed thought.

I personally can't wait for these two to merge as I really cant stand having to get XM in my Infiniti, talk about schlock radio with commercials on the music stations.

I think it is true... true true... well you know the thing about this is he has very... very.. hairy ears.. and I've got to tell you about that, hairy ears can be a problem, and can you trust a man with hairy ears.. I hope so, I've got hairy ears as well, so throw me under the bus as well.. what does this have to do with uncle Mel.. nothing.. uncle Mel will sue the chickens off the old F.C.C... and by chickens I mean they won't be able to afford toilet paper to wipe their selves.. this means nothing at all really, what they need is a hanky, and that would cure things that need to be cured.. and with that all I've really got to say is you hairy eared bastard, fight the good fight.. you've lost me as a sub with this merger, now lose your car keys and take the bus.. get run over by a reindeer.. a nice Christmas carol nobody likes to admit they like.. Mel got run over by a reindeer.. crank it loud, crank it proud... thank you and goodnight or good day..

Guess what Mel. I hope the merger is a complete failure, and that XM and Sirius can go there separate ways, when you attempt to sue the government. That would be the greatest thing ever.

Mel is wicked cool!!!!

After reading through the posts, why are most of them either negative or cynical? No wonder the world is going down the crapper. People see the bad. Too bad for them.

Obviously none of you understand that once the merger happens we will control the entire satellite radio industry and we will be able to raise prices and charge what we want. All of us who on Sirius stock will be RICH. This stock is going to take off once we become a monopoly. Just hang in there folks, it won't be long.

oh, and ahh, gooday!

oh, and ahh, gooday!

So mflynn I see since you've been banned from the Sirius message boards on google finance. You've found a new home for yourself.

Also I would like to add if Sirius/XM bump up their prices after the merger. Cancel your subscription. Satellite radio is not a necessity it is a luxury item. Go back to listening to AM/FM. That is precisely why they will not increase prices.

Murphy: You're full of crap. You can easily install whatever you want into your "Inifiniti" POS. You obviously never listened to XM and are just spewing the brain-dead Stern mantra that XM music channels are full of commercials.

To quote a very wise man: "Flush your XM down the toilet, buy a Sirius and go fuck your mother!"

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