Opinion: Sirius XM Merger Appeal
Having spoken with Michael Hartleib, I will not write anything regarding our conversation as he has already offered his own opinion in the original story, but I would like to offer my own opinion on the case.
One of the questions I posed to him was; “Why did (he) wait so long.” I told him he would have had a much better chance had he filed before the two companies officially merged. Sirius XM is a brand new company now. Even the old stock certificates are no longer valid. They can’t go back and do a “do-over.”
I explained to him my opinion that in waiting so long to file, it gives the appearance that this appeal is from a disgruntled shareholder rather than a concerned one. If I were an attorney, I would argue that the appeal would not have been filed had the company stock risen to $10.00 a share. Waiting in my opinion has killed any chance of an outcome other than dismissal.
Further, a large part of the FCC’s order dealt exclusively with the interoperability issues brought up by Mr. Hartleib in his appeal, and were acknowledged in the memorandum dated 7/25/2008. Pages 50 -56 of the order deal exclusively with the issues raised by Mr. Hartleib, C3SR and the NAB.
Page 52 of the order demonstrates that the FCC acknowledges the argument made by Mr. Hartleib;
“Another commenter claims that existing receivers made available to the public are already capable of interoperability, despite claims by Applicants to the contrary. 362 ” Letter from Michael Hartleib, to FCC at 4; see also Hartlieb Apr. 22, 2007 Petition at 4.”
362 -( Michael Hartleib argues that many of the XM and Sirius radios in service today are capable of receiving “either/or” service and signals via a firmware update to the receivers. )
The issue was attributed directly to Mr. Hartleib and offers proof that the FCC did in fact consider the matter thoughtfully. The C3SR redacted documents referred to were also found to be deficient:
“Based on our examination of the record, we are also not persuaded that C3SR’s filing raises a substantial and material question of fact that requires a hearing before the Commission can make the required public interest determination in this proceeding. First, neither the references to [REDACTED] nor the information that the documents reveal as to the joint venture company’s activities reflect a lack of candor. “
“Contrary to C3SR’s argument, the requirement that Applicants make an interoperable receiver commercially available was not “unambiguous,” as the above analysis indicates, and the general language of the joint venture agreement does not cast significant doubt on Applicants’ contention as to how they interpreted that requirement.”
Based on these facts, it appears to me that the appeal has no real grounds to move forward. The FCC did in fact take into consideration most of Mr. Hartleib’s complaints, in which a lack of consideration is the basis for his appeal.
Position: Long SIRI
Do you find it funny Hartieb won’t comment on this article where you pretty much prove the fact his appeal is Bull?
Hartlieb is nuts.
HOWEVER. It is apparent to anyone who is watching that XM shareholders have been totally killed by this merger. Sirius shareholders don’t appear to have been helped much.
This merger was a huge mistake. But Hartlieb trying to un-do it is a fairly difficult assignment, I’d think.
$1.22 today and headed toward $1.00 much as Wienkes accurately predicted. again.
face it, Hartlieb’s actions at this point are irrelevant. The attorneys working the merger still haven’t been paid and the merged entity will run out of cash-on-hand before the end of the year.
the best Hartlieb gets at this point is his “pound of flesh” as the company will need to reorganize by February an teh common shareholders will be completely wiped out.
yet the masses still chant . . . Mel is great, Mel is good. Let us thank him for our food.