Senator Says No To Merger

[stamplaw]

The chairman of the U.S. Senate's antitrust subcommittee on Wednesday
urged regulators to block Sirius Satellite Radio's proposed
acquisition of XM Satellite Radio Holdings.

Democratic Sen. Herb Kohl of Wisconsin said he had sent a letter to
the Justice Department and the Federal Communications Commission
calling on them to oppose the deal on grounds that it would cause
"substantial harm to competition and consumers."

"Such a result should be unacceptable under antitrust law and as a
matter of communication policy," Kohl wrote to FCC Chairman Kevin
Martin and the Justice Department's antitrust chief, Thomas Barnett.

Sirius plans to buy XM in an all-stock deal worth about $4 billion.
The deal would combine the only two providers of satellite radio
service in the United States and has sparked concerns among some U.S.
lawmakers and consumer groups.

The deal is currently being reviewed by both the Justice Department
and the FCC, which issued both satellite radio licenses in 1997 on the
condition that the two companies would never merge.

Although they can exert political influence over the agencies
generally, lawmakers have no direct input into the decisions about
individual merger reviews.

In testimony before Kohl's subcommittee and other congressional
panels, Sirius Chief Executive Mel Karmazin has promised that the
combined company would not raise prices, and that customers would be
able to block adult channels and get a refund for those channels.

Karmazin has also argued that the deal would not be anticompetitive
because satellite radio faces competition from other forms of audio
like traditional AM/FM radio and personal audio players.

But in Wednesday's letter to the agencies, Kohl said he was
unconvinced. Terrestrial radio is too limited to compete with
satellite radio, while personal audio players cannot match the
programming of satellite service, he wrote.

"No other technology available today is a substitute for the satellite
radio," Kohl wrote.

Beyond that, Kohl said, other possible alternatives are years away
from being available to consumers.

"Uncertain promises of competition from new technologies tomorrow do
not protect consumers from higher prices today," Kohl wrote.

[Kimba W. Lion]

Post by stamplaw
"Such a result should be unacceptable under antitrust law and as a
matter of communication policy," Kohl wrote to FCC Chairman Kevin
Martin and the Justice Department's antitrust chief, Thomas Barnett.

Finally, someone in Congress has some sense.

Post by stamplaw
Sirius plans to buy XM in an all-stock deal worth about $4 billion.

What's the source of this article? Up til now, this was touted as a "merger
of equals".

[David]

Post by Kimba W. Lion

Post by stamplaw
"Such a result should be unacceptable under antitrust law and as a
matter of communication policy," Kohl wrote to FCC Chairman Kevin
Martin and the Justice Department's antitrust chief, Thomas Barnett.

Finally, someone in Congress has some sense.

Post by stamplaw
Sirius plans to buy XM in an all-stock deal worth about $4 billion.

What's the source of this article? Up til now, this was touted as a "merger
of equals".

Right. It's always been a Sirius buyout.

[Tom]

no, it's not.

Post by David

Post by Kimba W. Lion

Post by stamplaw
"Such a result should be unacceptable under antitrust law and as a
matter of communication policy," Kohl wrote to FCC Chairman Kevin
Martin and the Justice Department's antitrust chief, Thomas Barnett.

Finally, someone in Congress has some sense.

Post by stamplaw
Sirius plans to buy XM in an all-stock deal worth about $4 billion.

What's the source of this article? Up til now, this was touted as a "merger
of equals".

Right. It's always been a Sirius buyout.

[Kimba W. Lion]

Post by David

Post by Kimba W. Lion
What's the source of this article? Up til now, this was touted as a "merger
of equals".

Right. It's always been a Sirius buyout.

http://preview.tinyurl.com/2cao2g
Page 14:
"Tax-free, all-stock merger of equals"

[Kevin]

I'm moving to Wisconsin!
There mustn't be any problems in Wisconsin what so ever
for their U.S. Senator to be wasting his energies on something
as frivolous as the merger of two small radio companies.
Milk & honey here I come.

Post by stamplaw
The chairman of the U.S. Senate's antitrust subcommittee on Wednesday
urged regulators to block Sirius Satellite Radio's proposed
acquisition of XM Satellite Radio Holdings.
Democratic Sen. Herb Kohl of Wisconsin said he had sent a letter to
the Justice Department and the Federal Communications Commission
calling on them to oppose the deal on grounds that it would cause
"substantial harm to competition and consumers."
"Such a result should be unacceptable under antitrust law and as a
matter of communication policy," Kohl wrote to FCC Chairman Kevin
Martin and the Justice Department's antitrust chief, Thomas Barnett.
Sirius plans to buy XM in an all-stock deal worth about $4 billion.
The deal would combine the only two providers of satellite radio
service in the United States and has sparked concerns among some U.S.
lawmakers and consumer groups.
The deal is currently being reviewed by both the Justice Department
and the FCC, which issued both satellite radio licenses in 1997 on the
condition that the two companies would never merge.
Although they can exert political influence over the agencies
generally, lawmakers have no direct input into the decisions about
individual merger reviews.
In testimony before Kohl's subcommittee and other congressional
panels, Sirius Chief Executive Mel Karmazin has promised that the
combined company would not raise prices, and that customers would be
able to block adult channels and get a refund for those channels.
Karmazin has also argued that the deal would not be anticompetitive
because satellite radio faces competition from other forms of audio
like traditional AM/FM radio and personal audio players.
But in Wednesday's letter to the agencies, Kohl said he was
unconvinced. Terrestrial radio is too limited to compete with
satellite radio, while personal audio players cannot match the
programming of satellite service, he wrote.
"No other technology available today is a substitute for the satellite
radio," Kohl wrote.
Beyond that, Kohl said, other possible alternatives are years away
from being available to consumers.
"Uncertain promises of competition from new technologies tomorrow do
not protect consumers from higher prices today," Kohl wrote.

[Kimba W. Lion]

Post by Kevin
I'm moving to Wisconsin!
There mustn't be any problems in Wisconsin what so ever
for their U.S. Senator to be wasting his energies on something
as frivolous as the merger of two small radio companies.

The way businesses have been re-writing the laws in this country, I'm glad to
see there's still someone who hasn't been bought off.

[Pete]

Post by Kevin
I'm moving to Wisconsin!
There mustn't be any problems in Wisconsin what so ever
for their U.S. Senator to be wasting his energies on something
as frivolous as the merger of two small radio companies.
Milk & honey here I come.

Post by stamplaw
The chairman of the U.S. Senate's antitrust subcommittee on Wednesday
urged regulators to block Sirius Satellite Radio's proposed
acquisition of XM Satellite Radio Holdings.
Democratic Sen. Herb Kohl of Wisconsin said he had sent a letter to
the Justice Department and the Federal Communications Commission
calling on them to oppose the deal on grounds that it would cause
"substantial harm to competition and consumers."
"Such a result should be unacceptable under antitrust law and as a
matter of communication policy," Kohl wrote to FCC Chairman Kevin
Martin and the Justice Department's antitrust chief, Thomas Barnett.
Sirius plans to buy XM in an all-stock deal worth about $4 billion.
The deal would combine the only two providers of satellite radio
service in the United States and has sparked concerns among some U.S.
lawmakers and consumer groups.
The deal is currently being reviewed by both the Justice Department
and the FCC, which issued both satellite radio licenses in 1997 on the
condition that the two companies would never merge.
Although they can exert political influence over the agencies
generally, lawmakers have no direct input into the decisions about
individual merger reviews.
In testimony before Kohl's subcommittee and other congressional
panels, Sirius Chief Executive Mel Karmazin has promised that the
combined company would not raise prices, and that customers would be
able to block adult channels and get a refund for those channels.
Karmazin has also argued that the deal would not be anticompetitive
because satellite radio faces competition from other forms of audio
like traditional AM/FM radio and personal audio players.
But in Wednesday's letter to the agencies, Kohl said he was
unconvinced. Terrestrial radio is too limited to compete with
satellite radio, while personal audio players cannot match the
programming of satellite service, he wrote.
"No other technology available today is a substitute for the satellite
radio," Kohl wrote.
Beyond that, Kohl said, other possible alternatives are years away
from being available to consumers.
"Uncertain promises of competition from new technologies tomorrow do
not protect consumers from higher prices today," Kohl wrote.

Yea but do ya love cheese and cows?

[vanguard]

Post by stamplaw
"Uncertain promises of competition from new technologies tomorrow do
not protect consumers from higher prices today," Kohl wrote.

Sen. Herb Kohl owns the Milwaukee Bucks pro basketball team of the
NBA. His annual financial reports say he is worth $200 + million.

Each year Kohl and the NBA LIMIT COMPETITION with their draft of
college and high school players.

A drafted player may ONLY negotiate with he team which selects him,
thus reducing his bargaining power substantially.

Sen. Kohl is not in a strong position to accuse someone else of block-
ing competition.

[Me Know]

Using sports drafts as a comparison is completely stupid and without
merit. If a draftee does not want to sign that's up to him or her. No
one is forcing them into that occupation. They can always wait and
become a free agent and sign with whomever they choose. Pro-sports is
not the only occupation that must go with, they can always go get a real
job and work for a living.

With one sat company there is no choice, and no where to go for similar
entertainment. Sirius/XM merger is wrong, and monopolistic. I am glad
the politicians are saying no.

Post by vanguard

Post by stamplaw
"Uncertain promises of competition from new technologies tomorrow do
not protect consumers from higher prices today," Kohl wrote.

Sen. Herb Kohl owns the Milwaukee Bucks pro basketball team of the
NBA. His annual financial reports say he is worth $200 + million.
Each year Kohl and the NBA LIMIT COMPETITION with their draft of
college and high school players.
A drafted player may ONLY negotiate with he team which selects him,
thus reducing his bargaining power substantially.
Sen. Kohl is not in a strong position to accuse someone else of block-
ing competition.