According to the Associated Press, FCC Commissioner Adelstein has put an offer on the table that would enable the merger to happen. Adelstein, a democrat commissioner, was not widely considered as one of the commissioners that would support the merger. By Adelstein putting an offer on the table, there is perhaps a bit of insurance for the merger to proceed if republican commissioner Tate for some reason seeks even more stringent concessions.
Adelstein is asking that additional concessions be added to the deal in order to gain his support. Adelstein is said to be seeking:
- Pricing cap for six years instead of three.
- Commitment of 25% of the spectrum for informational and minority programming.
- Other requirements that were not specified
There were no details offered on whether the 25% of the spectrum would be under control of the merged entity.
In reference to the issue Adelstein stated, "It's critical that if we're going to allow a monopoly, that we put in adequate consumer protections and make sure they're enforced."
This latest news now puts commissioner Tate in even more of a spotlight than she was previously. Conventional thinking would have many believe that Tate would seek fewer concessions that Adelstein. Because of this, part of the finalized picture can now begin to take shape, and the street can begin to extrapolate where the conditions will fall.
Sirius and XM have not offered any official response to the Adelstein proposal. For quite some time it has been insinuated that giving back too much spectrum would be a deal breaker. Exactly where the spectrum line is drawn is unknown, but estimates in the neighborhood of 10% have been popular.
[ Via Associated Press ]
Position: Long Sirius, XM.