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Thread: Heated Debate.

  1. #11
    Newman is offline
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    As Hart has stated multiple times here and elsewhere, he is not against the merger, but the valuation that XM is getting in the merger.

    His take: If people knew that interop radios were indeed a reality, rather than merging and taking on XMs problems, Sirius could theoretically petition the FCC to force XM to turn on the interop radios. If retail sales are any indication, when given the choice, people tend to choose Sirius over XM. If given this choice in OEMS, it is assumed that the same percentages would be seen. This would make Sirius much more valuable of a company.

    The existance of interop radios already being installed in vehicles is quite compelling. The largest concern I have about this merger is how the transition will go, because as two seperate broadcasts, Sirius/XM cannot realize even half of the expected synergies.

    Many people have called Hartleib a conspiracy theorist on other boards, and I for one partially agree. However, I will throw another conspiracy at you: What if these two class action suits were in fact perpetuated by Sirius and/or XM in order to actually protect THEMSELVES. This class action suit gets settled for nothnig more than an additional FCC filing, and in the process, the "CLASS" gets screwed out of all rights. Sirius/XM flip the switch, turn on interop radios, and the "CLASS" has no rights to anything because they did not opt out.

  2. #12
    hartleib1 is offline
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    Newman is a very smart man. Just wait until I can shed more light on things to come!!!

  3. #13
    clueless is offline
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    Quote Originally Posted by Newman View Post
    His take: If people knew that interop radios were indeed a reality, rather than merging and taking on XMs problems, Sirius could theoretically petition the FCC to force XM to turn on the interop radios. If retail sales are any indication, when given the choice, people tend to choose Sirius over XM. If given this choice in OEMS, it is assumed that the same percentages would be seen. This would make Sirius much more valuable of a company.
    Then why wouldn't Sirius just do that in the first place? Why would they push so hard for this merger?

  4. #14
    TSavery is offline
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    Clueless

    This is pure conjecture on my part, but there are many factors at play.

    There have been times when an interoperable device would have been beneficial to Sirius, and times where it would have been beneficial to XM. There have also been times where it would have been good for the sector.

    Getting interoperable was no guarentee that a large number of subscribers would migrate. The expense of creating a radio that generates half of the subscribers would have been difficult for either Sirius or XM to put on the table. Neither company has made money, and an interoperable device would have to be subsdized with potentially no real return if subscribers chose the other service.

    A merger facilitates an interoperable device better because all subscribers would be under one roof.

    As passionate as fansare for one service, there are fans just as passionate for the other. The OEM contracts guaranteed that neither service was going to "burry" the other. Additionally, if one service got into trouble, it would become a viable takeover to new ownership and management that may be better equipped to compete. By example, if we assume that an interoperable device came out and half of Company "A's" subscribers migrated to company "B". Company B would have cpompany A in trouble. In walks a "Google" and they scoop up company A. Flush with cash, company A can now deliver a pounding to company B.

    Sometimes keeping it "in the family" is better than inviting a new player. The merger keeps it in the family, and allows the combined company to nbe a stronger and more viable competitor
    Tyler Savery
    Satellite Standard Founder

  5. #15
    Newman is offline
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    Then why wouldn't Sirius just do that in the first place? Why would they push so hard for this merger?
    (again, not saying this is HERE, but just going with my consipiracy theory above)
    My suspicion is that the agreement between the two companies states that both companies have to agree to flip the switch before it can happen. As Tyler said above, there are times when Sirius would have benifited and there are other times where XM would have benifited. At this point, I think it is Sirius that would benifit, though not as much as some people claim.

    My suspicion is that if this were in fact a possibility, Sirius forced XM into the buyout, telling them that they turn on the interop or agree to merge. Merger would be better, because ALL subscribers come under one company. If the merger fails, Sirius goes to FCC and forces XM to agree to interop, where Sirius gets the benifits.

    Just food for thought....

  6. #16
    hartleib1 is offline
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    Bingo! The truth is starting to show.

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