Attorneys Generals Disappointed with DOJ’s Sirius XM Decision
It was predictable that various parties would be quick to jump into the party following the decision by the Department of Justice to approve the merger of Sirius and XM without restriction. With all eyes on the FCC, and the FCC holding the only chance to see concessions in the case, many are now once again presenting their wish list to the agency as if Kevin Martin was Santa Clause.
In the news toady, it was revealed that Attorney Generals from 11 states have decided that they are disappointed that the Department of Justice arrived at their approval without placing any restrictions on the transaction. The reaction of these states to attorneys has some irony. On one hand, the Department of Justice weighed out the evidence for over a year. They poured through millions of pages of documents and reviewed pages upon pages of data. They looked at the merger from various perspectives, and in the end concluded that from an anti trust standpoint that the merger could pass. On the other hand, we have the Attorney Generals for a handful of states arriving at a conclusion without having reviewed all of the documentation, nor all of the data. IN fact, it would almost seem as if they have never reviewed the case in general.
The various states Attorney Generals seek:
1. Interoperable receivers available to consumers.
This issue has already been addressed, and was addressed early in the process. Sirius and XM have already promised A-La-Carte radios as part of the merger.
2. A-La-Carte Packages to consumers
This is yet another aspect of the merger that has been on the table since the beginning. Sirius and XM have already published proposed A-La-Carte packages complete with prices.
3. Divert (surrender) Spectrum.
This option has also been presented during the process, albeit, not by Sirius and XM. It is the amount of spectrum that is the main question, whether it is dedicated to certain programming, or whether their is a spectrum surrender.
In a quote attributed to the Attorney’s General, they stated, “The combination of these companies will result in a single corporation controlling access to all nationally available satellite radio.”
It would appear that the Attorney Generals from these states missed the main thrust of what the Department of Justice concluded. The method of delivery is not the main factor at play. It is the fact that content can be delivered from many sources, and in point of fact that wireless services carry the ability to also broadcast on a national basis.
As the FCC ponders their decision, it is a certainty that various parties will continue to try to influence the decision. While an FCC approval is not cast in stone, the FCC has not yet countered a ruling by the DOJ. Speculation abounds. Some that felt that the merger had little chance of DOJ approval cited that the past actions of the agency dictated that a rejection was in the cards. In this case, not only were they proven wrong, but the lack of stipulations by the DOJ ultimately demonstrated that the agency indeed considers the trend of the marketplace becoming more varied.
In the end, FCC approval is, in my opinion, a virtual certainty. Yes, there will be stipulations attached. However, given the tenor of the DOJ decision, the stipulations may not be as bad as some think. A-La-Carte is a given. Price freezes for a period of time are a given. Channels dedicated to informational and minority programming is a virtual given. Some of the other proposed restrictions may be a very hard sell. At this point, investors may need to wait at least a few more weeks, but the time is indeed drawing near.
Position – Long Sirius, Long XM
If the companies give up significant spectrum existing radios will have less content!! Which is against consumers and against the public interest.
Only if they replace all existing radios with new ones they can give up spectrum. This is a deal braker.
The world we live in becomes more absurd by the minute . I am at a loss for words !!!
It is worth mentioning that, according to leading analysts, the results of the year-long investigation were a recommendation that the merger be denied.
Only the politically-motivated Division Chief chose to go against the result of that year-long investigation. The so-called “investigation” was merely a formality required to try and lend credibility to the situation.
It is so obvious this merger should never have been permitted that these AGs can see it without going through the motions.
hippo….
Which “leading analysts” might you be referring to?
There was speculation at one point that the staff would go against the merger, but that never received any real confirmation.
The 11 AG’s have not stated that the merger should be opposed. They have outlined concessions that they feel should be applied.
After the prices go down and more choice is availiable we should all send a letter to these guys asking them why do they think the merger was bad.
We should also present to them the facts and the new pricing plans and not forget to mention that XM subscribers will be able to enjoy content from Sirius and vice versa.
We can use theese facts to prove to them that they are against the people and they serve special interests.
It is amazing out of 50, there were only 11 willing to take the time to put their names on this. It is typical, Hypocritical ass looks at the minority and says their opinions are the ones we should listen to. I think the reason being, this watered down concession letter is the closest thing he has to his arguement being right. He feels this letter is his last bastion of sanity he has left to hold on to.
FWIW, the AG’s have pretty much ruled out filing their own antitrust lawsuit to stop the merger at this point. They noted that they feel it should be left at the Federal level.
This letter to the FCC is just an opinion piece, meant to get some press and get the attention of the FCC.
>>> FWIW, the AG’s have pretty much ruled out filing their own antitrust lawsuit to stop the merger at this point. They noted that they feel it should be left at the Federal level.
Which is surely correct; these guys realize they have no role here — they cannot do anything about if the Feds choose not to file suit, and this appears to be an acknowledgment of that fact. This is merely their effort to make their views known — that it shouldn’t have been allowed in the first place.
By “leading analysts” I was referring to Peck and Watts who had made the allegation that the chief would go against staffers’ advice. It is my belief (THAT IS, MY OPINION) (which cannot be proven or disproven until someone makes a statement on it) that he did just that. However, he did what he needed to do to avoid the embarrassment like he suffered in the Whirlpool merger, when it leaked out after the fact he had acted against staff recommendations.
Hippo, Stick to your night job. You should have went to college!
FCC approval on Mon. boys.
Kevin, I too thought that way about a week ago, that on Monday we would have had a decision. I am most likely wrong though. Given Tylers last article at 7:23 today. I had figured most of the talking buy now was done and over.
>>> Hippo, Stick to your night job. You should have went to college!
Now, that’s funny.
I should have “went” to college.
Well Hippocritical ass, those kind of comments are your fault. If you did not sound like a nut, because of your biased comments you have been making. People would find you more intelligible, like homer985. You have been shown to be wrong time and time again, The DOJs remarks have proven two of your arguements to be totally false. Maybe you should stick to one name for starters. Next when you have been proven wrong just admit it, dont keep trying to argue. Third get off of your imaginery high horse you put yourself on. Forth when your arguement has been proven to be false dont resort to name calling.
>> You have been shown to be wrong time and time again, The DOJs remarks have proven two of your arguements to be totally false.
I haven’t been “shown to be wrong” about ANYTHING pertaining to the merger. I was clear in my posts here and elsewhere that I believed there was a 50/50 chance the DOJ would act politically instead of on the facts of the case, and it is precisely what they did, and 11 state AGs feel strongly enough about it have spoken out saying exactly the same things I did — even though it is overtly NOT a case in which the states have any jurisdiction.
If anything, I have been proven RIGHT. Now, I may yet be proven wrong if XM and SIRI actually produce a dual-mode receiver, which is an area in which I have been the only voice claiming they won’t — and I have maintained that Mel would see the sensibility in not producing such a receiver.
If I’m proven wrong about something, I have no difficulty in admitting I was wrong. But it hasn’t come to pass just yet.
The biggest mistake I made was in not selling at top.
You see what I’m talking about Hippo (FrontMed) you dont remember, when you said SIRI and XMSR compete strongly for each others existing subcribers. It shows first, you change your name so much that you cant remember which of you that wrote that ridiculous arguement. Second you cant admit you were wrong. The other arguement you were shown to be wrong on, was that it went totally against antitrust law. If that was true it would have been a slam dunk to block it in court. Instead the DOJ gave amble reasons why it was not against antitrust law.