XM-Sirius Merger This Week

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Looks like I was wrong on one item and correct on another in my initial analysis of the XM-Sirius deal from a customer’s perspective. XM and Sirius have reiterated that old radios will work with the new service per a letter that XM has sent to subscribers (I haven’t received it yet).

While on Capitol Hill this week defending the merger to Congress, Sirius CEO Mel Karmazin agreed that the companies would allow government set price controls to get the merger approved. Mr. Karmazin’s arguments were spoofed on public radio’s Marketplace program this week (I was so happy when this became a free podcast) as they don’t appear to be buying the “less is more” campaign.

Oh, how I loathe John Ashcroft. This week he blasted the deal in a scathing letter to his successor at the Justice Department on behalf of the National Association of Broadcasters, a terrestial radio lobbying group. While he didn’t bring up any new issues, the letter was seen as a blow to the merger by a very well connected man in Washington.

Well, not so fast there. The Wall Street Journal ($) is reporting that Mr. Ashcroft actually approached XM to lobby on their behalf. When they turned him down, he went across the street to the NAB and they hired him instead. That led to the scathing letter that promised everything short of frogs raining from the sky if the merger went through. I guess Hell hath no fury like a woman scorned for Sega lobbyist scorned.


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