Sirius-XM Merger Decision Delay Is Unacceptable

FCC to approve Sirius (SIRI) / XM (XMSR) merger by the end of the second quarter. Yawn...

And so passes June 2008. The lettuce continues to rot on the dock and tax payer money is still circling the drain. For me, this merger is no longer about anti-trust issues. It is about our Government failing its people. The rejection or approval of these companies has been delayed for one reason only. Nobody wants to own the final decision. No one wants to be responsible.

Consider this:

1. If the merger doesn't go through and Sirius goes under, the public blames the FCC and the Justice Department for dragging their feet because of the pressure they have been under from the NAB and the politicians they support.

2. If the merger goes through and the business succeeds, the NAB and the politicians blame the FCC and The Justice Department for allowing a monopoly, although Clear Channel (CCU) has no one to blame but themselves for their complacency. The fact that they are upset about a company that makes up a whopping 5% of the radio market is very sad indeed.

This is a no win situation for the FCC and the Justice Department. I agree that it is a decision that must be evaluated carefully and with the utmost management skills but the real problem I have with this situation is that the powers that be are paid well by the public to make these difficult decisions. Otherwise we do not need you

I say as a proud American who spent some of the best years of his life in Washington D.C. supporting two Presidents, that this situation stopped being a joke a long time ago and has turned into such gross negligence that the disappointment in this branch of our political system may be unrecoverable.

I challenge the FCC to grow spines, do their jobs and just make a decision. Yes or No. Forget about the political repercussions for a moment and consider the fact that it is not in the interest of the tax payers to drag this out for so long. If political pressure and fallout is the main concern, wait until tax payer votes are needed if you ever aspire to a higher position of Government. If you think it is lonely at the top, it is worse in the desert.

Disclosure: None

Comments

[User 217738]

"that this situation stopped being a joke a long time ago and has turned into such gross negligence that the disappointment in this branch of our political system may be unrecoverable." This guy took the words right out of my mouth. The FCC needs to be eliminated along with many other government jobs and positions. This country is tired of a government that is for only it self. We another Boston Tea Party. After the merger is approved [if it is approved] think they will have any trouble finding some attorney's to litigate the decision? I doubt it. Too many attorney's that need work so they make work for themselves.

[Plowboy]

(1) The FCC has never been more mismanaged and prostituted for personal gain than it's been under Kevin Martin who, like his Appointer, the Decider, has literally undone years of respect and goodwill established by his judicious and hard working predecessors.

(2) That satrad continually faces immense challenges almost as if pre-ordained and continual like the rising of the sun. Excessive start up costs, Ipod, Bad management, lawsuits, NAB, Paid for Congress, $4.00 gas, automotive product mix, HD, Internet Radio, Cash flow, recession, slumping auto sales, and now an impotent, political and disconnected FCC.

[Bill Cooke]

If it is not approved at this point, I suggest we get our pitchforks. The idea that these companies and the consumers can be screwed over because of special interests (who have apparently bought several US Senators and State AGs) is sickening.

[Plowboy]

I've defended Ms. Tate vehemently until yesterday.

I'm afraid at this point I can only conclude that she is leveraging her vote for her own personal gain very much like Martin did in delaying this vote for 17 months.

I will be opposed to Ms. Tate's continuation at the FCC even if she votes twice in favor of this merger this afternoon, as I'm done with her and frankly tired about hearing what she wants... that she's unsure .. that she seems conflicted. Jesus H Fucking Christ lady, if you have no idea 506 days after the merger announcement, I for one would suggest you're not capable of an opinion.

In honor of Ms. Tate's either indecisiveness, incompetence or self serving nature the people she's chosen to ignore have penned a little ditty in her honor;

--

Come and listen to a story about a girl named Deb
A poor mountaineer, the NAB kept her family fed
Then one day she was primping in the mirror
And in through the door came a fellow named Rehr… Dave that is …
Limousines, trips.. speaking fees !

Well the first thing you know Old Deb’s a millionaire
Rehr said Deb let’s move away from here
He said “In Congress” is the place you ought to be
So they loaded up the Lexus and moved on up the street
K Street that is … Lobbyists, parties… trips to Africa …Swimmin pools, movie stars.

The FCC Hillbillies!

Well now its time to say good-bye to the FCC and all their friends
They would like to thank you folks for buying in with them
You're all invited back again to this locality, to watch the constipation and mediocrity
Politics that is. Set a spell. Take your wallet out . Y'all come back now, y'hear?

[apppro]

Deplorable is a much better word.
Just a disgrace!

[Plowboy]

Gino, thank you for another well written piece.

Your choice of words are interesting yet underscore the problem.

You talk about a "win" for the FCC.

Correct me if I'm wrong, but the FCC's duty and purpose isn't to win anything but to support and determine the application of rules and technology that aid and educate the people.

It seems they have a confused their jobs with their careers.

[thanksgovt.]

Anyone reading this stuff probably has some vested interest in this stock. Which is why they are so aware of the unbelievable, in your face (and up your ass), blatant screwing "our" Govt. is giving this country for their own personal gain. The scary part is that this is happening in COUNTLESS other bullshit self serving aspects of this great country. As appalling as this "merger" seems (and it is). It is just one drop in a bucket the size of the pond at the Washington monument. We are just really paying attention to this one little splash of H2O. It's so sickening.

[thanksgovt.]

Sorry, I meant once great country.

[Plowboy]

Absolutely, positively, sickening. Two American Corporations follow the rules and apply for a merger to the acting authorities who fail to act for 18 months. No wonder the USA is down the tubes. No leadership.

[Plowboy]

The FCC was sold for silver by Martin and his pals. I'm sure as we speak Martin is calling John Kerry asking him how he should vote on some issue while Tate is calling Obama asking if she can please keep her job.

[163888]

Sorry to be so venomous, but I cant stand to see a bunch of retards, that cant seem to pull their heads out of their butts long enough to see clearly.

[fpc]

the state ag-s action of going directly to fcc, bypassing doj and contravening its decision on the merger is, to say the least, a breach in protocol.

doj must restore order and remind ag-s that the department is the office designated and authorized to adjudicate issues of national scope filed with the department.

[fpc]

in regards to fcc, the commissioners could be reminded that the part regarding silence in the miranda rights does not apply to them.

they were appointed to their position to make decisions - timely decisions.

[the little guy]

STOP this is ridiculous, We the people is not just some catchphrase-REMEMBER?.
To allow a group with special interests to coast so many so much is appalling. We have the power to stop all of this B--l S--t*$# right now, wheres Penn&Teller when you need them.
Call your representatives and your congressmen, give us a list of people at the FCC we can hold accountable, remember you are the power behind all government demand disclosure and clarity where you see only a smoke screen. Drop the gauntlet you are already armed against such injustice YOU HAVE YOUR VOTE, USE IT

[Jim S]

At this point there can be no further analysis left to be done, so Mr. Lattarulo seems to have it right--lack of spine under political pressure. These regulatory delays add tremendous costs to business, making our economy less competitive than it could be. It's time for reform. Why not require that the multiple reviewing entities decide who will screen any given merger? A merger would get one review, although any relevant regulatory points could be raised in that review. Then, thumbs up or down, and uncertainty would be cleared away. Or have all the reviewing entities for a given merger contribute members to a single ad hoc committee for that merger. Again, one review, and let's get back to business.

[Kentucky / John]

Well said. My feelings exactly. It is beyond sad to see such a blatant example of incompetence in government.

[Rawbhurt]

Well,let this be a lesson for everyone.After this is all said and done.There should be a time frame for the DOJ and the FCC to come to a decision in the future.Example 6 months for DOJ and like wise for the FCC.

[Alan Jr]

Want to read some interesting letters?
check this out: www.fcc.gov/transactio...

It amazes me the reasons people give why the are against the merger. The North Carolina Public Radio Stations states "Just a few weeks ago, the House Appropriations Committee approved an additional $40 million to assist public radio stations’ transition to HD radio technology." as proof that congress supports terrestial digital radio. Hey, how about giving the $40 million back to the tax payers and letting terrestial radio survive on its own?

[Disappointed American]

Hey FCC do your job! How about being there is so much interest in the Sat spectrum (at least when minorities expect it for free) that you do this. How is this for an Solution. Take the adjacent spectrum that was not auctioned off originally (you know the other 25 MHz) and sell some of it to the interested parties. They could buy one of the XM sats that have been floating around up there, and have a Minority/free service. And also change the FM frequencies slightly by assigning the freq 88.1 for personal fm transmitters, to prevent interference and to help improve the customer experience.
So you can make money for our economy, to help offset your unproductive pay for the last 15 months. This would solve all the problems just by selling the spectrum to all the parties interested in my companies’ assets.

Signed;
Disappointed American

[Disappointed American]

To FCC;
You all should be embarrassed, and fired! You have lied and stalled enough. 180 day clock =a scam, by the end of the year=a Lie, by the end of the first quarter=another Lie, Shortly after the DOJ decision=another lie, Martin says he was having multiple drafts written months ago=lie. Now shortly and pretty shortly; but no drafts circulated in over a year and a half! Now By the second quarter again nothing…..What have they done in all that time????? DOJ has proven this is not a monopoly! Allow the licenses to be combined and stop pandering to every group out there! They have no right trying to get my Company for free, I paid for shares of my company and you have no right to give anybody anything that I own. If the minorities want more radio exposure let them go buy a radio station with their own money. This is a free country, not a socialist state. So allow the combo with no concessions other than what the companies agreed to begin with. I hope you are all investigated for this disgrace, you are going far beyond what the FCC was intended for and now you are using this unassigned power to destroy American confidence in our government, and any company you choose to destroy. Your stalling of this decision has cost me personally and many more I am sure, I hope the companies file suit for your stall tactics, the empire state building was built in less time. And both companies have now lost the Millions/ Billions due to your indecision. You have no right to cost companies so much. This is America, free market capitalism, remember? This is not a necessity it is a pay luxury service. Mr. Martin do you have a Boss that oversees you, or are you a free-bird with no one to answer to? I would like to speak to your boss because no common sense decision can take over a year to make. I don’t know of any company, employee, or anybody that can take so long to do a job and still have a job after showing this amount of incompetence. I want you and you group all fired. Here is a link to a video that shows how irrelevant you group is; www.youtube.com/watch?...
So in ending you appear to be protecting your buddies at the NAB, and pandering to any special interest group wanting something for free. How about the Americans you supposed to be protecting? By the length of time you have been taking means one thing to this American and that is you are saying FU to ME. And I want you Fired. I will be sending this to anyone that will read it, the sad thing about that is that unless it is accompanied with a check, I assume no government official will read it.

Signed; One disappointed American.

[User 223221]

Let's face it, there has to be some serious collusion going on. I don't know by who, but ask the question, "Who benefits from the delay?"

[Waxco]

Well said. I wonder if the investors have the right to sue the goverment or the parties involved for negligence and follow the trail of political corruption including financial fingerprints.

[ARI D K]

This is a perfect example of Decision making for the Special Interest and NOT for the American People. Political corruption to it’s BEST.
I think all 19 Million plus Sirius/XM subscribers send complains to the FCC.

[163888]

I have to say I have been reading the various blogs and boards. It is a sad day when, if some nut job where put a bullet in one of the commissioners heads, as he said; this is what you get for this delay. He would be praised by millions. Is that what these people at the FCC have done, turn a sible population into an angry mop, thirsty for blood. I find it hard to believe but after reading some peoples comments, it is possible. I hope some reasonable person calls and tells them to increase security. I highly dought the people at FCC realize how bad it is getting. I will never forget about the time, that daytrader went on that shooting spree at the brokerage house. I am most likely over reacting but to see the comments that I have seen over the past few days (not at Seeking Alpha or Sirius Buzz) I dont know.

[omagod500]

When will this be national news? Why does it seem like we are the only ones who care? Shouldn't this get a Newsweek cover at least?

Maybe instead of writing your Politicians and the FCC, we should write to Dateline, Newsweek, 60 Minutes, Time, your local news stations, your local newspapers... Hopefully at least one won't be controlled by or in the pocket of someone who is in with the NAB and a story could get through!

[daryl]

How about posting the names and emails of all the FCC members so we can truly become the squeeky wheel rather than complaining about them on a website that they won't pay attention to?

[BackStJoe]

After the long, long wait for the Department of Justice decision, the FCC should have jumped on this. With all the problems going on in this country, shouldn't this be a no-brainer? Don't we want a company generating money instead of losing it?

[163888]

daryl,

[phone]....Copps
[phone]....Adelstein
[phone]....Tate
[phone]....Mcdowell

Hope that helps.

[Seamless82]

Highly political. There is a lot of pandering to terrestrial radio over at the FCC. And this is why it's taken so long to decide the outcome of this merger. But secretive as the FCC is, it's not really hard for the public to hold them accountable at this point. The mysterious "inter-workings&q... of the organization have been exposed by their lack of initiative and leadership.

[RReagan]

What is happening to the stock today? Is there any news? All sources lately including the AP has said the merger was going to being done.

[bananaz]

Imagine this sort of lobbying against the automobile by horse and wagon lobby. Where would we be now? "What disgrace" is right!

[shure46]

thank you FCC for trying to single handedly bankrupt me .....I think the government can stop thinking that I need them now .....I don't ....I can't think of anything the government has done for me that I couldn't have done better for myself .....I would much rather have all the money I send to my government , than to pay for any more of this incompetant representation that cares for nothing except lining their own pockets ........good article Gino , and I am just sick of this mess right now ....and plowboy - loved that FCC hillbilies song ....you nailed it , and I can't wait to hear the finished cut hit the charts ......I am gonna puke now , and go pay my margin call ..........bye bye savings , and FU FCC ....specifically Ms. Tate , you warped , self centered , pile of crap ....you are killing me , and thousands of others ....hope you enjoy your little NAB perks , because you sold your soul to the devil in the process .....you are completely insane with this non-sense , and severely hurting a LOT of people that are not going to take this lying down .......my next e-mail is to the white house

[shure46]

I say forget emailing the FCC website , now it's time to send millions of emails to the white house ....this is an election year , they don't like to see pissed off voters ......oh , and pretend you are a minority , that helps too !!!!!!

[riddick]

Tate has left the country and will not be back in the office until the 15th warren-news.com

[riddick]

Once again the FCC working hard to get the votes in NOT! They are a joke and we are getting killed. Check out warren-news.com
Tate split the country without voting. Way to go Tate.

[User 223309]

Amen!! Grass roots effort to blow up their email boxes with requests to put this through or kill it. Enough already. Poop or get off the pot!

[RReagan]

Well at least we know that it won't be done until at least the 16th, when the confused Ms. Tate gets back. What about the other 2 bozos that voted against the merger? They should be held accountable too. What were they thinking? Perhaps one of them is up for Martin's job next year when the empty suit flipflopper Barak gets elected. What a great country! lol

[sdrucker]

Thank you 16388! I called those numbers and they are, in fact, the correct office numbers for each of the commissioners of the FCC. I strongly suggest that each and everyone who posts here, call those numbers and leave your message (they won't take your call but they will allow you to leave a message on their voice mail). That's as good as it gets, but it is a lot better than sounding off on this blog, if you really want to put pressure on them.

[shure46]

I think siri/xm should tell the FCC to shove it , and within all bounds of law as it stands work together now ....as in , go ahead and develope a unified reciever that will recieve both siri and xm .....just call it the new "satrad" reciever ...dedicate half the channels to siri and half to xm ....12.95 per month for either set of channels seperately .....there is no sense in siri and xm trying to oust the other , the real enemy is the NAB ....siri and xm should consider each other in a symbiotic relationship and use any legalities or loopholes in the law to co-exist and prosper together , even as seperate companies they can implemement new strategies within the law to save expenses and increase subscriptions ....I think a common satrad receiver would be a good start , and surely is lawful considering a terrestial receiver includes many different broadcasters ....the basic premise being take off the gloves and fight dirty now ......The enemy is NOT each other , it's the FCC and NAB .......I am willing to risk it all now .....let Howard rip the FCC and rally the troops , take off the kid gloves , and let 'er rip ....enough butt kissin' , the bureaucrats deserve no respect anymore , and this entire nation needs to know what is happening here.......how in the hell can someone take a vacation ( I am curious as to who is paying for this vacation ) when two major companies are crumbling in an economy on the brink of recession !!!!! What in the hell do these people think they were hired to do ????? Piss around in the Bahamas ??????? Nero fiddles , while Rome burns .....what a disgrace

[ace22]

I DONT UNDERSTAND WHY NO ONE FROM XM OR SIRIUS HAS SPOKEN UP ABOUT THIS BULL SH IT!!!!!!! WTF

[muley101]

It looks like Tate has given Mel some more concessions to think about and split for a while to let him mull it over. There will probably be another short negotiation period. This will help her to justify her YES vote when she gets back.

[163888]

Ace22, they feel they are real close and dont want to stir the pot. the last thing they want is to say something in public that would piss the FCC off.

[cos10000]

Impotent rage. Why waste your time? Do you really think calling the commissioners will sway their vote?

[RReagan]

shure46 and others, I have no idea what to expect, but I believe everyone is counting on the approval of the merger to make the stock jump. At this point, I just don't see a huge increase in the stock upon approval of the merger. If it does go up, I am sure the rep from Goldman Saks will have something to say to rain on the parade. I think it will take some new products from Sirius and some new technological advancements and agreements with google and others to boost the stock price. My uneducated guess, based on very low auto sales, the GS factor, and people sick and tired of this stock is that if the approval would come tomorrow, the stock would go to maybe $2.10 per share. I hope I am wrong, but I remember buying this stock when Cramer said the merger was all but done earlier this year and the stock would double. At that time, it was around $2.80 per share. Things have certainly changed since then! lol

[cos10000]

Reagan your best hope is to break even. SIRI has little upside.

[cos10000]

Your verbal venom only confirms to me your insecurity.

[ddr]

You sound like you write fortune cookies for a living.

[thanksgovt.]

That's funny stuff, in an otherwise unfunny situation.

[ddr]

I havnt lost as much as some people to this scam thats going on but you can be sure this dick pump is going to be there to add his "wisdom" every time.

[it ain't right]

We all have a vote is true, but the people that you have a choice of voting for are all politicians, not businessmen or businesswomen. Therefore your vote is wasted if you want someone that can make a decision without seeing what political personal ramifications it will have 10 or 20 years down the road. If government was run as a corporation........wel... first the termination line should be a very long one. Another Boston Tea Party is needed and that should be visible to the existing politicians, but the graft is blinding them. Why go forward when standing still, or even going backwards, is so much easier and pays the same. We need decision makers, not life time dwellers that are just waiting for their bowels to move them. I for one would vote for a non politician with a good business background. OH, I did, but Ross was defeted before he could even run. The USA is going downhill fast and I don't see anyone capable of putting the brakes on. After 9/11, that ass, Bin Laden said that the plan was to take down the USA by ruining it financially. Was no one listening or were the politicians so far up on their pedistals with their heads up their butts to understand. Oh, the FCC is as corrupt as any. Fire them all and get a couple homeless crackheads to run the organization. The outcome couldn't be any worse and even a crackhead can nod yes or shake his head no without checking with with the political Gods.

[Plowboy]

If I may...

The FCC's job is not about the impact on your investments.

The FCC's job is to fairly and in a timely manner address the filings and legitimate concerns of American Business for which they regulate, and for which they have professionally failed doing in the Sirius-XM case.

Be pissed that personal gain and favor superseded judicial responsibility. Be pissed that the arrogance of the Fab Five exceeds those of whom they are to serve. Be pissed that an entertainment form that you enjoy and appreciate has been severely and negatively impacted by their gross malfeasance, but don't be pissed that you lost money.

[cos10000]

At what price level do you smartpants all think Sirius will be overvalued. Please justify. If you can't, how will you know when to sell?

[mudslinger]

Dave, that is almost unanswerable at present. The answer will depend on what the business model and financial metrics are perceived to look like after this merger is approved or denied. I think there is little doubt that there will be several changes necessary to any DCF model including new revenue streams, new subscriber acquisition and churn metrics, new ARPU models, expected expense synergies etc. That is the reason people continue to hold this stock...they believe in the POTENTIAL offered by a merged company to dramatically alter the financial model within a few years that would give you a drastically different answer then you would get using the information at hand today.

[Freep]

At this point I tend to agree with what RReagan said about the stock going maybe to $2.10 on approval. On every bit of bad news this stock tanks and on every bit of good news...nothing at all happens. GS downgrades, the stock tanks. An upgrade from Merrill..the stock doesn't move a cent. The FCC has cost these businesses over 2 billion in value with their delays... and untold amounts to dumbasses like me who didn't know the system was rigged by the special interests and politics. My bad and I'm not whining about it...just a costly education.

[simpsonic]

Say after me, "I will NEVER vote for a democrat."

[shure46]

freep , 7-8 3:58 PM ..... I also was too naive to fathom this level of corruption ... I knew , and was prepared for risk when I bought Xm/Siri ....I did not mind the risk based on performance of the company ....THAT , is a given ....I was NOT however , savvy to the fact that I would be risking my capital on the whim of one solitary bureaucrat , nor did I ever imagine that one person , or entity could cause so much damage to a billion dollar company single handedly ....it is a sad situation when I am actually cheering because XM broke above 7 bucks today ......I still have faith for the future , but the future keeps getting pushed farther and farther along .........and as for "whining" ??? Hey , I think anyone that is losing their shirt deserves the right to vent about it .....I personally do not see any whining , just a lot of pissed off people , and rightly so

[RReagan]

LOL Freep yes its an education for all of us. I do not have a crystal ball but I think there are bumpy roads ahead, even if the merger is approved. I think that either way, there will be lawsuits in the billions to contend with no matter which was the FCC votes. I see more of a gradual climb, unless the GS GOD gives it a thumbs up, then it could skyrocket. I unhappily agree with Vicar, $2.80 is probably the best I could see unless Mel and Sirius have some deals already in the works with google, yahoo, and others. My dream is to see $4 by the end of the year, if I can hold it for that long!

[minnis]

This article needs to be on the desk of every FCC Commissioner and staffer. It assuredly represents the sentiments of stockholders as well as those employed at SIRI and XM and the consuming public. It is a disgrace how much has been lost and wasted in this charade. The comment/contest period that FCC allotted expired almost a year ago, however the NAB and other special
interests have brought self-serving political pressure that has far exceeded the preset deadlines. It is apparent that the FCC is behaving like a paper tiger, afraid to stand up and make a decision.
I am renaming the FCC as the Eveready Bunny --- with big ears, short legs, small brain, little conscience, and no voice.