Sirius & XM certify compliance with Second Request - Orbitcast

Sirius & XM certify compliance with Second Request

| 12 Comments

Sirius and XMToday, both Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR) certified with the DOJ that they are substantially compliant with its Second Request, it was revealed in a recent SEC filing.

The certification was made to the Antitrust Division of the U.S. Department of Justice that they are in substantial compliance with its Request for Additional Information. Last we heard, both XM and Sirius were in the midst of the document productions for the DOJ in response to the second request.

"I think we paid a little bit over $1 million just for photocopying the material that we had to send them, and that doesn't include any of the electronic [filiings]," said CEO Mel Karmazin during Sirius' 2Q07 earnings call.

"Generally in a relatively short period after [certifying], you then get some indications from the DOJ how that is going," said XM Chairman Gary Parsons during XM's 2Q07 earnings call.

[SEC Filing]

12 Comments

FOR THE LOVE OF GOD! JUST MERGE! SOMEBODY MAKE A DECISION!

Yes, this is a very protracted situation, not only for stockholders, but one would think for employees of either company, which do run into the 1000's for each; remember we are not just playing with stock valuations here we are playing with people's lives and their livelihoods. Some type of finality, either way, would probably be appreciated by either company's employees.

Parsons mentioned that after this, you get to hear some idea how it is going shortly---Is that publically or privately made to the companies?

>>> remember we are not just playing with stock valuations here we are playing with people's lives and their livelihoods.

While that's true, the reality is there are relatively few jobs at stake.

>>>remember we are not just playing with stock valuations here, we are playing with peoples lives and their livelihoods.

In the long run, one strong company is much more stable than two struggling companies. I would wager that most employees are hoping for the merger because it will IMPROVE their job stability.

I also agree with the comment that relatively few jobs are at stake. There is much more low hanging fruit.

>> While that's true, the reality is there are relatively few jobs at stake.

ummm....except for all of those who will be rendered redundant after the merger, ie: less than half of all who aren't on-air personality or direct production people.

it takes a lot less people to run one company than it does two separate ones.

"Parsons mentioned that after this, you get to hear some idea how it is going shortly---Is that publically or privately made to the companies?"

He was referring to the anti-trust review by the DOJ. I believe we will learn of that decision. Of course, the merger than would still have to get past the FCC.

of course we will learn of that decision but Parsons was indicating that they would soon find out how the winds are blowing and what the DOJ is thinking regarding the merger(not the final public decision)--Kinda like an early view of their thoughts---Thats what i was curious if that is made public or its a private communication to the companies("example---we have an issue with this but this is good---fix this and we might alow it etc"

Generally, the DOJ's decision comes first, and then followed by the FCC's decision. That wasn't the case with DirecTV/EchoStar, but their decisions came very close to each other (and they both denied it anyway).

We can expect the decision to come in December, and put an end to all this mess. :)

DOJ generally has 30 days from the date of the certification of the second request to make a decision to block or let it go ahead. Anybody who has ever followed media mergers has seen this happen over and over again.

Its one of my main problems with the blogs and the analysts. Most don't have any history following media so they just don't know what the hell is going on. I remember the confusion over the second DOJ request months ago. Everybody was writing it was unusual in mergers including Orbitcast. Second DOJ requests have happened in every single big media merger going back 20 years but all you guys just don't research history in media.