The longest application-to-clock delay in FCC history
Thursday, May 31, 2007 at 1:31 PM
Tags: 2, XM
It's been 70 days since Sirius-XM filed with federal regulators, and yet the merger hasn't even passed the preliminary review process. The FCC has yet to start its 180-day merger-review clock, and that smells like trouble for many.
"This constitutes the longest application-to-clock delay in FCC history," David Trout of M&A Researcher says in a report Wednesday. "There is simply no way to view the delay in a positive light."
And the delay seems to indicate that a decision won't arrive until sometime in 2008. That's cutting it close to election time, when political attention is far more focused elsewhere.
"It seems relatively safe to assume that the intervention -- in the form of face-to-face meetings -- of several politicians and organizations represented by former politicians is slowing the preliminary review process," Trout continued.
This chart illustrates how long this merger review process is taking, when compared to other major mergers: 
"Each passing day without the FCC's pleading cycle and review clock being initiated threatens [hopes for] an FCC decision before the end of 2007," Trout writes.
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Comments
Nice, so now well get to see what company really "sucks less".
Posted by: mrFancyPants ? | May 31, 2007 1:57 PM
Who cares. the merger wasn't going to happen anyway
Posted by: chicago bill ? | May 31, 2007 2:21 PM
Hmmm. The former record holder for the application-to-clock delay had their merger go through. The data doesn't really seem to support this theory.
Posted by: MeatFarley ? | May 31, 2007 2:34 PM
because every one of those companies had MILLIONS in the pockets of the dems and repubs....
siri/xm should have made massive donations over the last year and they would have crused as well
Posted by: PNess ? | May 31, 2007 2:51 PM
""Each passing day without the FCC's pleading cycle and review clock being initiated threatens [hopes for] an FCC decision before the end of 2007," Trout writes."
Trout then concluded, "The sky is blue."
Posted by: Thrawn ? | May 31, 2007 3:13 PM
>>>"because every one of those companies had MILLIONS in the pockets of the dems and repubs....siri/xm should have made massive donations over the last year and they would have crused as well"
Have to agree with you there. They never purchased enough US Reps in the first place...
I would also argue that no matter how much payola they throw at Congress, the NAB can match or exceed it. They need to make a few important Senators and/or Reps under -the-table part-owners.
For example, theoretically dumping a few million dollars into Senator Kohl's Caribbean account or Congressman Doyle's Swiss slush fund is nothing compared to the many multi-millions they could make if they were "awarded" a few million cheap Sirius options (at $1.50 each and under the mistress' name, of course) should they ensure that the merger happens.
With Congress, you get what you pay for...
Posted by: MikeHunt ? | May 31, 2007 3:18 PM
I'm not in the loop, Ryan.
How many of those actually passed?
Posted by: Schimshamity ? | May 31, 2007 3:19 PM
Thats what you get in Washington--All politics and whose done the most for me($$$), not whats best for the majority of the country
Posted by: gary | May 31, 2007 4:15 PM
I think this is great news as far as people who never wanted this merger to happen for a number of reasons. Let both companies suffer until one buys out the other, why should the taxpayer have to pay for failed large business?
I am happy with XM the way it is, whether they have a Sat failure ever once and a while or not. The musical variety that the company offers is great and so is their coverage of MLB on XM 175. I really couldn't ask for any thing better.
Posted by: Jim ? | May 31, 2007 5:25 PM
"...why should the taxpayer have to pay for failed large business?"
How will this merger cost taxpayers anything?
Posted by: MeatFarley ? | May 31, 2007 5:34 PM
Good for the FCC! Hoo Hoo and the white-haired shyster have already sucked the life-blood out of Sirius. Don't let them do it to XM.
Watch that Sirius stock drop - from less than $3.00/share to $0.00.
Zero point Zero Zero.
Posted by: Captain Sludge | May 31, 2007 6:12 PM
What's the difference between a buyout and a merger beside having one of the companies(most likely the one you're so satified with) going under?
Posted by: Schimshamity ? | May 31, 2007 6:16 PM
I was for the merger at first but now i am against it. Because of the O & A suspension and the bad customer service the customers got when trying to cancle their subscriptions.
People who have both xm and sirius and then will only need one with the merger. How long will it take the customer service to cancle the uneeded radio. They will probally milk customers out of extra money by not cancle subscriptions right a way.
Posted by: TheBigGiantHead | May 31, 2007 9:46 PM
All kidding aside, I'm against this merger because I don't want to have to drive a flatbed truck to listen to satellite radio.
Posted by: Thrawn ? | May 31, 2007 10:53 PM
ilove your comment Mike Hunt..our political system really blows sometimes! the only thing i would add is get ready for price increases if this merger doesnt pass.
Posted by: rkb ? | June 1, 2007 2:20 AM
Bureaucracy at its finest
Posted by: espnjason ? | June 1, 2007 7:15 AM
Great news! The longer this takes, the longer guys like Lee Abrams and Mike Marrone get to keep their jobs.
Posted by: Jim | June 1, 2007 7:47 AM
just saw an article at Forbes.com by Joan E Lappin of Gramercy Capital Management about the "suck less" quote by Mel.She says there are "rumblings" that the merger review clock will start any day now.
Posted by: rkb ? | June 1, 2007 10:15 AM
""Each passing day without the FCC's pleading cycle and review clock being initiated threatens [hopes for] an FCC decision before the end of 2007," Trout writes."
Trout then concluded, "The sky is blue."
Funny that Mel and the boys are still saying they'll get it done by year end. Maybe the sky is a different color for some.
Posted by: MBeegle | June 1, 2007 5:17 PM
... apparently nobody here on this forum watched Jim Cramer rave and rant...
or they should have mentioned him...
he said it al...
just watch him curse the system you are writing about..
if nothing else this will...
our forumwritings will certainly not cause ripple in the pond...
JIm may just tip the sacles...
... and we ought to thank him for that!
http://www.cnbc.com/id/15840232?video=628513517
Posted by: Isaac, Rotterdam, Holland | January 27, 2008 4:20 PM