XM takeover rumors, again
It's a reoccurring theme, but one that keep raising its ugly head: theflyonthewall.com is reporting that there's chatter of a competing bid for XM Satellite Radio (XMSR).
And while this rumor is still only unconfirmed takeover speculation, it seems to be happening more often lately. Which increases the chances of it being true in my opinion.
I think if the proposed merger fails - especially as a result of the DOJ defining the relevant market as being just "satellite radio" - this could open up the door for a takeover of XM. If satellite doesn't compete, CBS Radio (or Clear Channel, or whoever) can then snatch up one of the satcasters without anti-trust fears.


Comments
No negativity here, but if the merger does not go through you will see 1 or both of the satellite radio companies bought within a short period of time by much larger conglomerates. I'd place good money on this bet. This, a purchase my a larger media company or telco is definitely not in the public's interest.
Posted by: funkright | July 6, 2007 1:23 AM
I would rather not have either satellite radio company being bought out by a media company but if they did it would be interesting to hear what the NAB has to say. Not only that but what the FCC and the DOJ would then do. Would they hold up the process or approve it as fast as the other acquisitions.
Only in American can we sue Microsoft for capitalism but let time warner, cox, comcast, etc. do what ever they want. And then sit back and let XM and Sirius wait and wait and wait.
Posted by: another thought | July 6, 2007 8:05 AM
Should CBS or any of the terrestrial monopolists buy up XM, initially, a good portion of users will abandon XM for Sirius (or abandon Satrad completely). That will undoubtedly vault Sirius into the unquestioned #1 position in the space before long.
Long term, XM churn will level off as OEM installs even out the losses somewhat, but, knowing how stupid and greedy management at one of those companies can be, I'd bet it's likely that they'll just simulcast all their shitty-ass awful commercial stations from around the country, give a portion away free since they're now sucking the FCC's dick, and abandon the commercial free format entirely. Sirius will essentially be left alone in the space.
Subs will continue to abandon XM, now probably called something creative like "CBS Satellite Commercial Radio". Some OEM installs will remain as paying customers because there's always going to be a portion of the public (evan a majority, I'll bet) that really don't give a shit one way or the other what's on the radio (I'm convinced you can broadcast nothing but static and commercials and alot of people will listen). Eventually, the sort-sighted moronic management will drive more people off Satrad entirely or to Sirius. These guys have no clue and they will destroy the what was XM, intentionally or not.
Eventually, the former XM will just be another money-losing line item in the CBS budget/annual report that the accountants can use as a tax write-off.
They'll keep it going just so Sirius can't have the bandwidth but XM, now a distant memory, will have been effectively put to death.
Such is the way of the Moonves...
And Greg and Tony, now completely censored, will make history by getting below a 0.0 in most of their remaining markets, but the "pests" will claim they're still the #1...
:)
Posted by: MikeHunt ? | July 6, 2007 8:22 AM
MichaelHunt,
What makes you think that Sirius is in such a great position now that they arent in a position to be bought out as well?
It seems to me that if either company gets bought out there is a serious chance the other will go shortly too. However I do not think that whoever buys it will be stupid enough to make it commercial-supported.
Worst case scenario in my opinion is this:
Clear Channel (or CBS) buys out one of the two. They then come up with an idea to provide free satellite content to anyone who already owns a receiver and make channels 1-20 of music free, but supported by commercials. They market it as a way to get people who receive satellite content via OEM installs still in the satrad market. If I was to have a choice between FM or Sat with commercials, I would take the satellite due to the lack of static, ease of use etc. Eventually some those who dont pay for the full service will decide to switch over after hearing about what they are missing every commercial break.
This could also work with the lower end receivers as well. If you pay $9.99 for a Roady unit and agree to pay for 1-3 months of service, then even if you cancel the service after that you still have the unit capable of receiving content instead of a paperweight, thus easing the fear of buyers remose afterwards. I know for a fact I would not have gone out and spent $300 on an inno when they first came out if I didnt know already that I enjoyed the service.
So here is what they offer with commercials: 2-3 country stations, 2-3 rock stations, 2-3 "urban" stations, 2-3 news (perhaps even CNN or FoxNews), generic sports programming XMSN, a classical station, oldies, and maybe even a preview channel highlighting what you are missing that could play exclusive shows (dylan, artist confidential) during the day and a nightly MLB game or NBA or NFL during the season to entice the free listeners.
I know that many people would drop the service based on principle, but I could see a lot more signing up to get what they are missing as well. And like I said, do this all in the first 20 channels so those of us who are willing to pay could just skip right over them to get to the real content.
Just a thought.
Posted by: MarkS ? | July 6, 2007 8:50 AM
I'm really interested in finding out whether or not the anti-merger people would rather XM be bought out by Clear Channel instead(I won't even consider the possibility of Sirius being bought out by them. That would be a 100% deal breaker for me).
Posted by: Schimshamity ? | July 6, 2007 9:31 AM
XM can easily survive on it's own at this point.
As a one time shareholder, I would be very upset at a buyout now - just when the business is ready to become viable and profit making. No to a buyout !
My plan is to buy XM stock by fall - so that it can grow over the next 5 years.
Posted by: Mike | July 6, 2007 10:26 AM
If Clear Channel buys XM, I'm jumping ship. I picked up XM to get away from that kind of programming, so there's no way in hell I'm going to pay money for it.
Posted by: MeatFarley ? | July 6, 2007 11:35 AM
WEll Sirius already sounds like FM without commercials, will there shallow music selections on the music channels...So it SOUNDS to me like they have already been bought out..
Posted by: ?? | July 6, 2007 12:07 PM
And Greg and Tony, now completely censored, will make history by getting below a 0.0 in most of their remaining markets, but the "pests" will claim they're
still the #1
You idiot, you can't get below a 0.0, there is no such thing is negative ratings. This is proof positive that Mike Hunt can't make a single comment without mentioning either Howard or O & A in some way or another. The article this comment is about has nothing to do with them, yet the mentions and jabs at them persist. I suppose that if this happens, Howard will be completely and totally uncensored, and will make it a daily event on his show when he wishes brain cancer on Greg and Tony. Bet you'd just love to hear that in the post XM world, wouldn't ya? and going on a site using the name Mike Hunt is ackin to someone else using the name, ben Dover, or Amanda Hugandkiss. Pretty much third grade humor. The lights are on, but I don't think anyone's home up there.
Posted by: Toonhead ? | July 6, 2007 1:18 PM
I guess Toonhead is too stupid to get sarcasm..
Heh. "Pests" are so retarded and easy to tweak...
:)
Zero. Point. Zero.
Posted by: MikeHunt ? | July 6, 2007 2:36 PM
Zero Point Zero?
Mike walk away from your Sirius. Get some fresh air. Take a vacation. Then never let something so stupid. Take over your life again!
Posted by: ati | July 6, 2007 3:06 PM
I guess Toonhead is too stupid to get sarcasm..
Heh. "Pests" are so retarded and easy to tweak...
:)
Zero. Point. Zero.
I'm hardly a pest, but I do consider myself a fan of O & A. You can be a fan of a show without being a "pest". I've seen some of the things the pests do and it makes me sorry that I'm in a small way, associated with them. I got the sarcasm, don't worry. But if you're going to be sarcastic, at least put a little thought into it. The 0.0 bit is old now and it's not even funny. You never would've thought it was unless Howard told you it was. I have a mind and i choose to use it. Now! as for this murger thing, you aren't gonna be able to please everyone. Some channels are gonna get the axe, and some people are gonna be highly pissed. and I do agree with others, you really don't hear from Parsons on this thing, Mell is doing all the talking and I don't think that's a good thing for XM. A murger of equals? Unless Gary P starts opening up and talking as much as Mell is, I somehow think the XM subscribers, no matter why you chose to subscribe, are getting the short end of the stick. I've heard both services, and I much prefer XM's deeper playlists and less dj chatter. and that sloga, "the best radio on radio", what the hell is that? of course it's on radio, what am I gonna do, listen to terestrial? Not after hearing XM.
Posted by: Toonhead ? | July 6, 2007 3:37 PM
I've always thought that if Clear Channel (or CBS or Citadel) bought out either of the sat. radio companies, a possible move might be to simply simulcast existing FM stations. One of these big companies that owns many stations in most formats could simply simulcast two or three of their stations from various formats (two CHRs, two ACs, two Countrys, two Classic Rocks, etc.), and simply charge a lower fee. Sure there would be commercials and it would be re-broadcasts of FM stations, but if they sold it for something like $5 or $6 a month I think it might be attractive to many listeners. You would still have a lot more variety than you get with just local FM, plus the "neatness" factor of hearing what's going on in other markets. And if it is simply simulcasts of existing FM stations, it could be done very cheaply and therefore sold at a very low price point (like the $5 a month that I mentioned). I know lots of people here would hate this scenerio, but I think it would probably be a smart move for someone like Clear Channel, CBS, or Citadel. Also, I think if the merger fails, it will most likely be XM that is sold or bought out like this (instead of Sirius).
Posted by: Brian | July 7, 2007 10:09 AM
>> and it's not even funny. >>
Well that never stopped Mike before! ;-)
Posted by: Pete ? | July 9, 2007 11:27 AM