Cramer Strikes Back
Once again tonight Cramer has set his sites on merger, and now has had a response to what Congressman Gene Green of Texas had to say in an interview last week. Cramer takes apart the politicians argument in a step by step style that you will have to see to appreciate.
What more can be said? Watch the video
Position – Long Sirius, Long XM
Jim Cramer must have got alot of mail on his interview. I emailed him with this : I think you looked and acted like a dog that just had it’s balls cut off. I can understand you didn’t want to get into a debate but you could have mentioned that the main reason the Dish and Directv merger was denied, was cable was not in all rural areas. That if satilite tv were able to merge that would leave only one choice for those people. That is not the case with satilite radio with all the alternatives that are out there.
It is my opinion, if you plan to conduct interviews with other congress members in this manor, please dont. It is possible to give a counter point without being rude. The reason I said the dog remark was to show you how some of us, that watch your show felt you looked. I also am not wanting to get other interveiws with congress members.
>>> I can understand you didn’t want to get into a debate but you could have mentioned that the main reason the Dish and Directv merger was denied, was cable was not in all rural areas.
But your supposition is absolutely wrong. Quotes from the commissioners involved. As you can see from the following remarks, the mention of cable is totally and explicitly incidental. The overwhelming issue is that it would have created a merger to a duopoly, which does not serve the public interest. If a 3:2 merger doesn’t serve the public interest, there is no doubt a 2:1 is even more egregious.
Not that I think Cramer understands any of this any better than you do.
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Chairman Michael Powell wrote in his statement that “The combination of EchoStar and DirecTV would have us replace a vibrant competitive market with a regulated monopoly. This flies in the face of three decades of communications policy that has sought ways to eliminate the need for regulation by fostering greater competition.”
Powell added that “The record before us irrefutably demonstrates that the proposed merger would eliminate an existing viable competitor in every market in the country. The case against approving the transfer application is particularly compelling with respect to residents of rural America who are not served by any cable operator. Those Americans would be left with only one choice for their subscription video service, now and in the foreseeable future. But that alone is not the cornerstone of our decision. At best, this merger would create a duopoly in areas served by cable; at worst it would create a merger to monopoly in unserved areas.”
Commissioner Kathleen Abernathy wrote in her statement that “this proposed merger will likely harm consumers by eliminating a viable competitor in every market, driving up prices, and decreasing innovation and quality of service.”
Commissioner Michael Copps wrote in his statement that “it would be an enormous risk to approve a transaction that results, at best, in the merger of a duopoly into a monopoly in a critical sector of multi channel video programming.”
Commissioner Kevin Martin wrote in his statement that “I believe EchoStar currently is violating the must carry provisions of the Satellite Home Viewer Improvement Act and FCC rules by placing some broadcasters’ signals on a second dish. I continue to be concerned about the burden this practice places on consumers and the impact this discrimination may have on some broadcasters — particularly public broadcasters. I therefore dissent in part, on the majority’s decision not to include EchoStars compliance with its must carry obligations among those issues designated for hearing.”
John,
Your missing the point. This is his schtick. Its not the McNeil Lehr report. This is what makes him interesting to watch. Agree or disagree on what he says..its an entertainment show.
My point to the letter was to comment he was not doing the pro meger side any good by just standing there with his head down saying humhm,humhm.