In a SmartMoney interview with Mel Karmazin (via SSG), the subject touched upon the beaten-horse topic of a possible SIRIUS+XM merger.
Karmazin's response isn't that of complete dismissal, but rather he leads the answer in a suggestive direction stating that his focus is on "value and wealth creation" and that "mergers allow for that." Not necessarily saying anything, but teasing with the suggestion nonetheless.
When asked the same question by Bear Stearns analyst Bob Peck only a few weeks ago, Mel had a more conversative response in that he didn't "have very much to say about any hypothetical combination that could or could not exist." (He later went on to say that Sirius is going to kick XM's ass).
Karmazin then turned the topic to the regulatory hurdles - which most believe would be the biggest barrier to a merger occuring:
"I personally believe regulatory agencies are not a problem. If there's an iPod with terrestrial radio, it's hard to believe government is worried about two satellite radio companies combining."
I'm not sure I personally buy that argument and I doubt the regulatory powers-that-be do either. iPods with FM receivers have little to do with FCC-granted SDARS licenses. But for a topic that inevitably - and so easily - drives up stock prices (and drives Jim Cramer into a frenzy... which isn't difficult), why not use a little suggestive language?
More Mel B.S., it is sad that some people actually believe anything he says.
How more suggestive do you want it? "I'm not really allowed to say?"
Where are you with a possible merger with XM?
I'm really not allowed to say. I have focused my entire career on shareholder value and wealth creation. Often mergers allow for that. I combined my radio company with CBS, and I combined CBS with Viacom.
I'd be surprised if XM & Sirius did merge. Aren't there anti-monopoly laws which prevent such a merge?
Yes their are laws but look at Comcast. They are more of a Monoploy than Microsoft could even dream of but they are allowed.
Of course the landscape is changing but it is going to be a while until I see any competition for Comcast in my town.
So yes it would be possible for Sirius and XM to merge. Would I be happy about it as a consumer is the question.
Here's my .02 and I've been all over this.
I think the deal fell out in October and was started in June-July. I suspect the XM BOD said no to an offer of 16-18 bucks.
Mel is going verbal now to pressure their board and to create doubt over the holiday buying season.
Joe thinks.... hemm... Sirius is trying to buy XM huh ? ...I better buy a Sirius unit.
Nice move Alan.
I the two did merge I would cancel my xm. Satellite radio won't be any good if there is no competition.
Mel sure does rock! He's right! With iPods, "HD" radio, traditional radio, internet streaming, there is lots of competition. No one can argue that they have a stranglehold over anything!
#1 Echostar and Direct TV wanted to merge and it was kaboshed by the government.
#2 I do not think there is a real problem with an XM/Sirius merger
#3 its not going to happen
#4 why does everyone think Medl wants to merre with XM? Not one person is reading between the Sirius did hire one guy who specializes in mergers and Aquisitions and they removed their "Poison Pill".
#5 I bet there will be a merger or aquisition but it will not be XM/Sirius but rather CBS/Sirius? Westwood one/Sirius, XM/Newscorp? It will not be XM/Sirius
if XM and sirius merge the XMers lose out , most of sirius 's stations play the same crap thats on radio already (mostly the hits). i like the mix of music on XM and would hate to lose it.
>> They are more of a Monoploy than Microsoft could even dream of but they are allowed.
That's what Verizon FiOS is there for.
how do they think this could possibly happen?? if XM is so close to being broke and Sirius is (broke/Stern rich) how or should I say who is going to pay to switch the 12 million plus subscribers to a single radio?? that would have to be dealt with fairly quickly and uniformly i.e. every one that has both services as well as those who have one or the other would have to be given (given?) a radio to pick up the sevice... not gunna happen... I can't see this happening, as much as Karmazin thinks it would be a good idea.. he's just getting media exposer... poor lad is jonesing for exposer....
realwx Yes I understand that but Verizon tried to sell cable tv many many years ago and the PUC said they weren't allowed to because it would put comcast out of business. Only now that Comcast has no competion in many areas has allowed Verizon to get their service off the ground. And to say that is what FIOS is for is a little premature given that it is not in many areas of the country and comcast still is raising their rates. When I got highspeed internet there were no options except for comcast either. When FIOS internet is avaible I will probably switch but comcast has a captive audience since many flyers and sixers fans can only watch their favorite team on a channel not allowed to be offered by any other provider.
There is going to be no merger. Mel is talking shit to keep investors interested and keep afloat rumors to inflate the stock price. That's his job.
Jeff - you got it backwards. XM plays the same Corporate Issue junk that ClearChannel nauseates us with, not Sirius. I have Sirius in both cars and listen to XM quite regularly in rental cars. Safe to say that GM Bastardizes anything they have a hand in ... they definetly did it to XM. There is much more variety on Sirius and the Channels by Genre are much better defined with little to no crossover between them, unlike XM, where you hear the same songs on a lot of the different alleged channels by Genre. If you were hearing "the hits" on Sirius, you were probably listening to The Hits Channel. XM has poor Marketing and very poor Program Directors, just like it's major stake-holder. If XM were the better option, and if a merger was really on the horizon, they'd be the company that the media was constantly trying to prime info from ... All that aside, a merger would make for a terrible monopoly and eventual corporate greed - just like Microsoft and just like Comcast. They provide a service but without competition, their products and services aren't stable and the customer service flat-out stinks. Hate to see that happen to SatRad.