This afternoon, Sirius and XM announced that the public comments filed with the FCC demonstrate "persuasively" that the proposed merger is in the public interest.
It's a bit of a PR move, but an unsurprising one since we're nearing the final hour of the FCC's pleading cycle. I especially like to see Gary Parsons being quoted in the announcement, who seemed to take a back seat during most of the battle. (Granted, Karmazin is Wall Street's "darling" but as a merger of equals we need to see a presence from both leaders. Then again, we don't see what's going on behind the scenes.)
Sirius and XM are quick to point out that over 3,500 comments have been filed in favor of the merger, as well as to highlight the various organizations who came in favor of it.
Read the press release - packed full great info (including direct quotes from terrestrial radio SEC filings) - after the jump...
SIRIUS, XM Highlight Growing Momentum in Favor of Merger
Strong and Diverse Public Support Demonstrates Merger is in the Public Interest
NEW YORK and WASHINGTON, July 9 -- XM Satellite Radio (NASDAQ:XMSR) and SIRIUS Satellite Radio (NASDAQ:SIRI) said today that the volume, diversity and strength of the public comments filed with the Federal Communications Commission (FCC) during its public comment period demonstrate persuasively that their merger is in the public interest and should be approved.
"The support for our merger is as diverse as the programming we provide," said Mel Karmazin, CEO of SIRIUS Satellite Radio. "The thousands of pro merger comments from organizations representing diverse populations and interests, individuals, businesses, and experts plainly demonstrate that the combination of SIRIUS and XM is in the public interest."
"These FCC comments strongly validate our contention that the merger will produce substantial public interest benefits," said Gary Parsons, Chairman of XM Satellite Radio. "These include greater programming choices, better prices, rigorous competition and more rapid innovation."
Since the FCC opened its docket on the merger, more than 3,500 individuals have filed in support of combining the two companies. The FCC docket also includes positive comments from 20 organizations and businesses, representing a broad spectrum of Americans. Among the most notable names are Circuit City, the NAACP and League of United Latin American Citizens, American Trucking Associations, National Council of Women's Organizations, League of Rural Voters and American Values.
The groups filing comments include a wide array of minority, women, religious and rural organizations who support the merger in part because of its capacity to strengthen the diverse programming satellite radio already provides for their members, and businesses and conservative organizations who tout the impact the merger will have on innovation and competition. Many of the comments also cite the combined company's plan to offer one or more new, lower priced services below $12.95, maintain current services at $12.95 and offer the best of both services at a modest premium over today's price. Others who commented noted the plan to offer a "block and rebate" feature, by which subscribers can opt out of certain channels they find objectionable and receive a credit on their monthly subscription.
These and other benefits have also been detailed in FCC filings by experts and think tanks including former FCC Commissioner Harold Furchtgott-Roth, former FCC Chief Economist Thomas Hazlett and the Competitive Enterprise Institute.
The merger also has received the editorial endorsement of leading newspapers including The Wall Street Journal, USA Today, LA Times and Washington Times.
The following organizations have made public comments in support of the XM-SIRIUS merger:
-- 60 Plus Association
-- African Methodist Episcopal Church, Dist. 2
-- American Trucking Associations
-- American Values
-- Americans for Tax Reform
-- Circuit City
-- Competitive Enterprise Institute
-- FamilyNet
-- Free State Foundation
-- Hispanic Federation
-- League of United Latin American Citizens
-- NAACP
-- National Black Chamber of Commerce
-- National Council of Women's Organizations
-- National Taxpayers Union
-- NY State Fed. of Hispanic Chambers
-- The Latino Coalition
-- Women Impacting Public Policy
-- League of Rural Voters
-- Women Involved in Farm Economics
The National Association of Broadcasters and its industry allies are expected to file comments today arguing satellite radio comprises its own distinct market and does not compete with terrestrial radio. However, the government filings and statements of numerous broadcast interests, including NAB and companies like Clear Channel, CBS, Spanish Broadcasting System, Entravision, Entercom, Univision, Citadel, Cox, Cumulus Media, Emmis Communications, Beasley and Westwood One, tell a much different story. For example:
"Our broadcasting businesses face increasing competition from new broadcast technologies, such as...satellite television and radio... These new technologies and alternative media platforms compete with our radio and television stations for audience share and advertising revenue, and in the case of some products, allow listeners and viewers to avoid traditional commercial advertisements." -Spanish Broadcasting System, Inc. (2006 Form 10- K, filed March 16, 2007)
"In 2006, we have satellite and Internet radio. And barely a day passes without the introduction of a new competing device or service. But we have news for our competitors: We will beat you -- as we have beaten those change agents in the past." -David K. Rehr, President and CEO, National Association of Broadcasters (2006 NAB Radio Show, September 21, 2006)
"Our broadcasting businesses face increasing competition from new broadcast technologies, such as broadband wireless and satellite television and radio, and new consumer products, such as portable digital audio players and personal digital video recorders." Clear Channel Communications (2005 Form 10-K; page 24)
SIRIUS and XM will file reply comments by the July 24 deadline. Following that, regulators (FCC and DOJ) will consider the merger. Pending regulatory approval, both companies expect to close on the merger by the end of 2007.
More information on the SIRIUS-XM merger can be found at http://www.siriusmerger.com/ or http://www.xmmerger.com/.
wonder how many opposed the merger if 3500 were for it. Mel and the boys did good from my persepective. They countered all the problems the fcc had with tier packaging, no raises, and parental blocks.
They exposed the nab and fcc for the fradulent parasites they are.
And they got people to come up and support it. I think things look pretty good if you ask me. Im sure from this point on the bullys will keep playing the monoploy card.
Mel is a liar that cannot be trusted. He is a snake oil salesman and the only person that this meger benefits is himself.
I would love for XM/Sirius to buy a billboard across from the NAB headquarters and put Rehr's quote on it, nothing else. Knowing Karmazin, he'd do it.
Are you Kiddin me? 3500 suporters of the merger? Thats it?
With 900,000 Sirius share holders as of last year and 2800 XM share holders as of last year and 14 million Sat Rad subscribers. All they got was 3500?
Seems to me there really is not all that much in the way of interest in any merger.
NO MERGER. BAD FOR ME, BAD FOR YOU, BAD for Everyone except Sirius share holders.
>>"Mel is a liar that cannot be trusted. He is a snake oil salesman and the only person that this meger benefits is himself."
Soooo....
Aside from your idiotic statement, where is your proof of this?
Moron.
3,500?
but, theirs like million's of subs between the companies?
Anyone who thinks this merger benefits the consumer is the moron.
Research Mel's history with Infinity/Viacom, then you'll see why I would only be for the merger if Mel, or any other Sirius exec, were not in charge.
"Research Mel's history with Infinity/Viacom, then you'll see why I would only be for the merger if Mel, or any other Sirius exec, were not in charge."
I guess running a very successful company, as Mel did at Infinity/Viacom, makes him bad.
"Are you Kiddin me? 3500 suporters of the merger? Thats it? With 900,000 Sirius share holders as of last year and 2800 XM share holders as of last year and 14 million Sat Rad subscribers. All they got was 3500?Seems to me there really is not all that much in the way of interest in any merger. NO MERGER. BAD FOR ME, BAD FOR YOU, BAD for Everyone except Sirius share holders."
And I'm sure that just because all of those subscribers and share holders that are out there didn't send a for/against to the FCC, means that they're ALL opposed? Sounds a lot like you're reaching a bit. Not all consumers knew they could do this, or chose to either way.
The choice to the consumer from a radio point alone is; If you don't feel like paying for radio, there's always the free competition to satellite available to everyone. Why is it I only hear slight complaining when cable bills rise every year when A LOT of places have one option to get their cable (such as where I live...no balcony...no satellite). There are bigger monopolies out there that go unnoticed. And this merger isn't close to a monopoly at all. The endless (often ignored) point of streaming internet radio, cell phone's with mp3, MP3 players, cds, old 8-tracks, vinyls, free radio, concerts, music on tv stations. If you want to expand to talk and sports, Oprah, Ellen, Jerry Springer, etc. on tv and so are MLB, NFL, NHL...I don't think I need to go on anymore on the 'monopoly' thing.
Pay for what you will when this goes through. There's far more options for entertainment that don't require you to pay for them. Like going for a walk outside. But, after this goes through I'll be going outside listening to my Sirius Stilleto for MLB.
Judas and Pilot sanctioning the crucifiction of satellite radio.
Enjoy all of the commercials on the music channels.
That's Pilate, not Pilot, Captain Sludge. The only Piloting these two are going to do is the crash and burn of satellite radio.
Good point about the commercials, though.
"Sirius and XM are quick to point out that over 3,500 comments have been filed in favor of the merger, as well as to highlight the various organizations who came in favor of it."
The companies did not mention that last month 72 members of the U.S. House of Representatives signed a letter opposing the combination of the nation's only pay radio shops.
THE MERGER IS NOT ONLY WANTED BY THE MASSES ITS NECCESSARY.. I AM LOOKING FORWARD TO THIS AND ENJOY BEING ABLE TO LISTEN TO WHAT I WANT WHEN I WANT WITHOUT ADVERTISEMENT TAKING MOST OF MY LISTENING TIME.. I WOULD LIKE TO THANK ALL THOSE INVOLVED IN PUSHING FOR THIS CHANGE TO OCCUR.. JP.
>>"Research Mel's history with Infinity/Viacom, then you'll see why I would only be for the merger if Mel, or any other Sirius exec, were not in charge."
What history? You mean taking a shitty little radio group and turning it into a massively profitable, huge media conglomerate?
You're right! Run for the hills!
You're an idiot.
What history? You mean taking a shitty little radio group and turning it into a massively profitable, huge media conglomerate?
No, homogenizing MTV, VH1 and the C-BS radio stations to the point where they are neglected. Mel was only in it to run ads, He isn't a radio guy by any means, especially when you compare him to Lee Abrams.
espnjason is nothing but right. Mel always puts profit first, programming second. His record proves that he is the undisputed king of radio advertising revenue.
He definitely had a good "sense for what sold" when he was at Infinity/Viacom, but his behind-the-scenes manuevering to bring Hoo Hoo to Sirius at the cost of $500,000,000 was one of the biggest miscalculations in radio history. He probably actually believed that most of Hoo Hoo's 10,000,000 + listeners would actually pay to keep listening to him. We all know that less than 10% of Hoo Hoo's listeners were willing to pay to keep listening to him.
Mel is no longer in touch with his company's audience.
Ummm, Mudhead,
- You baffle me. Your logic, absent. You start by saying that Mel is about profits not content. Then you say he paid to much for Stern. Ummmm.... If he was a profiteer at the expense of content, he wouldnt have gone this route. If siri didnt get howard, there prob wouldnt be any Sirius satrad. Youre just plain stpuid mudhead. Just dumb as all hell. Get a grip.
Amen to InnerCircle.
Mel's made Sirius the more recognizable brand. As a Howard follower overer, I take my radio to work where sales reps listen for about 30min a day while getting their work done, and about 15 of the 40 have radios in their work vehicles. So just because a (Mudhead amount I didn't look up) subscription rate is at a supposed 10% of followers, doesn't mean that more aren't listening. Believe when I say that while waiting for the west coast feed of Howard to start up and take me through my day, I listen to how a censored/uncensored program can sound. Terrible's a good word.
And didn't O&A used to charge a fee to listen on XM...I see they're 'free' now...with more commercials, you say?...and censored(free to not speek?)...and you don't have that fee anymore on XM...XM must have been getting hit with too many dollar bills from all of the people running to listen to them and cancelled that fee. Zero, point, zero.
I still don't understand how this merger brings up arguements though. This is a huge deal that brings benefits to both sides. Tell me that there aren't NFL fans listening to XM, or MLB fans with Sirius. If they could do away with XM's commercialized music channels and weed out repeating channels between the two companies, while bringing down monthly costs and giving more (while from what it sounds, not forcing anyone to listen to competing company channels), what's with subscribers not wanting this?