more on the sirius xmsr merger

[tankedsecondchance]

jacoby has been quoted today as saying after his meeting with, xmsr management .they are considering the sirius merger concept

 

[JimmyJames]

Source?

 

[buttonpuncher]

I sure hope it doesn’t happen. It would mean a monopoly and loss of some diversity, and a potential subscription increase.

Remember Dish and DirecTV tried to merge, but were not allowed to. Similar rules may apply here.

 

[Tony_Ramirez]

I hope they never merge. Sirius has many terrible music stations and XM is much better plus I like XM hardware better.

Without competition they can raise the rates as high as they want. I doubt it will happen because the FCC will never allow it.

 

[AZJoe]

Competition is the best thing for the consumer and Sirius & XM, it keeps them both on their toes. Sirius has been outpacing XM for a year and a half, and just when they seem to be making strides, this might not be so good for most involved IMO.

 

[tankedsecondchance]

I have read it from other sources also, same comments quoted from jacoby...

Sirius Satellite-SIRI XMSR management is considering merger seriously@BOFA
(theflyonthewall.com 01/09 08:02:37)

After meeting with XMSR's management, Bank of America believes they are considering the merger option with SIRI quite seriously. However, the broker notes several hurdles remain.

 

[tankedsecondchance]

Stifel Nicolaus Analyst Says XM (XMSR) Has Merger on Their Mind
01-12-2007 09:37:12 AM
In a note to clients yesterday afternoon, Stifel Nicolaus analysts Kit Spring commented on XM Satellite Radio (Nasdaq: XMSR) after meeting with the CEO, two IR officers and several marketing managers. The firm said they believe XM is "indeed contemplating a merger w/ Sirius (Nasdaq: SIRI), perhaps due to widespread speculation that, given the synergies (we estimate a present value of $7B), it makes too much sense for Sirius not to try it."
Spring also said, "We believe a 50/50 enterprise value split or perhaps a slight premium to XM shareholders may be warranted in a merger scenario." He said the company's main reservation would be the potential disruption in the retail marketplace if consumers perceive XM as a company that is about to be taken over.

The firm maintains its Buy rating and $18 price target on XM.

Stocks Mentioned

 

[voicetrack]

I think a merger might be the only way for the service to survive at this point...

 

[John Waywoods]

Won't happen.

FCC Says, "No!"

 

[tankedsecondchance]

interesting bit from the biggest pumper of xmsr ever Mr jacoby ads to his other comments

heres your answer from mr jacoby......

By Steve Goldstein
Last Update: 5:37 AM ET Jan 16, 2007

<LABEL class=StoryContent id=StoryContent_Content>

XMSR17.12, +0.74, +4.5%) was downgraded to neutral from buy at Banc of America Securities, with the broker saying there's limited upside potential and significant downside if it doesn't merge with Sirius Satellite Radio (SIRI :
sirius satellite radio inc com




SIRI4.10, +0.20, +5.1%) . Even if the firms do merge, the broker said most cost savings wouldn't be realized until the end of the decade, as the systems aren't interoperable, meaning both satellite systems would have to run for at least another three years. </LABEL>

 

[content]

Perhaps these companies have more competition than they need at this point?

The merging of these entities would better position the delivery platform to serve subscribers with twice the bandwidth and subsequently a wider variety of programming options - and ideally a stronger position to compete with other new forms of media.

Perhaps a subscription fee would happen. However, they'd be smart to keep it affordable to increase the penetration of the service as a whole.

I believe a merger is the only way the platform will succeed.

 

[tankedsecondchance]

if you go back a year and see who started all this merger stuff it was the media........I think mel used it for another reason.

I think melvin set this up pretty well, that xmsr will be forced into action one way or the other..


im thinking the real end game here from melvin is to have the fcc, ok or demand a common system platform, via interoperal technologies with the current amount of spectrum being maintained

from what i have read its one of the fcc requirements for both of the license holders and the fcc wants the devices made available....

xm can either go along by choice or be forced into it by the fcc.........


i guess melvin does play harball........and has began the process to jumpstart the regulatory powers into action imho

both have repeated many times in the past its to expensive to build dual units and nobody (manufacture) wants to, the other lame excuse was the oems dont want to offer the other service. thats also bull they want to offer all the choice they can. while being "paid" ,the deals currently in place are based on what the satellite services demanded

and manufactures are also under contract terms where as they cant build certain types of competing devices for other providers...

I think the case is strong when you look at the total audio/video services area along with wifi,wimax, internet ect.

sirius keep's it license control as does xmsr , the combined operating company would become interoperal technologies,and it would make either satellite service a option in all vehicles currently built in america OEM Dealers could still push their core service provider and collect the payment on all new vehicle sales

this will happen imho, only a very foolish management team would Refuse a license requirement from the fcc.

which would again make quality of content the primary driver for either service going forward

it could even support always on, free to air advertising supported content, full time on a national basis just like regular radio....

 

[SCMidlands]

;D Latest FCC Update on Merger: :'(

click:
http://www.radioandrecords.com/RRWebSite/

 

[tankedsecondchance]

so martin changed his tune........too, just ask we can change the law...

mels one smart cookie,why would he want to add xms troubles to their own........when he knows the fcc will look directly at the mandate issue for interoperal devices......which are in the realm of public interest

http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2007-01-18T212703Z_01_N18184091_RTRIDST_0_FCC-SATELLITERADIO-UPDATE-1.XML&rpc=66&type=qcna

I just read through the agreement heres a couple tidbits

We decline to adopt a specific standard for satellite DARS receiver designs, though. This will allow licensees the flexibility to determine the most cost effective way to meet our receiver-interoperability requirements. We do not mandate that satellite DARS receivers be capable of receiving terrestrial broadcasting formats. Terrestrial and satellite DARS are at different developmental stages and we do not want to impede implementation of either service.

this was what the fcc was looking for

105. Satellite DARS applicants share different views regarding the Commission's role in the process of receiver development. CD Radio (sirius) asserts that receiver inter-operability is in the clear economic interests of all satellite DARS providers and it expects that its receiver will be fully tunable in the sense that the consumer can select the service provider of their choice.186 AMRC (xmsr) contends that creation of a common receiver capable of tuning in the entire DARS band is important in promoting consumer acceptance of the technology.187 Given the market incentive for receiver compatibility, DSBC asserts that it is likely that a compatible receiver standard for satellite DARS will be developed without regulatory intervention.

106. As an alternative to this Commission mandating standards we will require that a satellite DARS applicant, in its application, certify that its satellite DARS system will include a receiver design that will permit users to access all licensed DARS systems that are operational under construction. Satellite DARS licensees, during the construction of their satellite systems, will have an opportunity to work among themselves toward a final receiver design. We agree with commenters that it is in the interest of the satellite DARS licensees, and consumers, for the licensees to come to agreement on a single DARS receiver design. We also agree with commenters that, alternatively, a single transmission standard would be in the interest of the satellite DARS providers and consumers, independent of whether it is developed by the Commission or by industry, but we will not mandate use of a certain technology.191 If satellite DARS licensees redesign their systems to use conforming transmission technology, receiver complexity would be minimized and receiver costs would be lowered correspondingly. We believe that, at the very least, consumers should be able to access the services from all licensed satellite DARS systems and our rule on receiver inter-operability accomplishes this. We also agree with CD Radio that it is unnecessary for satellite DARS consumers to file for a license for their receive-only terminals. Indeed, the Commission has not licensed receive-only earth stations for years in an effort to deregulate such operations.192

 

[tankedsecondchance]

heres what they agreed to when they bid for the spectrum,look at this item listed below (ii)



(a) Qualification Requirements:

(1) Satellite CD Radio, Primosphere Limited Partnership, Digital Satellite Broadcasting Corporation, and American Mobile Radio Corporation are the applicants eligible for licensing in the satellite digital audio radio service.

(2) General Requirements: Each application for a system authorization in the satellite digital audio radio service in the 2310-2360 MHz band shall describe in detail the proposed satellite digital audio radio system, setting forth all pertinent technical and operational aspects of the system, and the technical, legal, and financial qualifications of the applicant. In particular, applicants must file information demonstrating compliance with § 25.114 and all of the requirements of this section.

(3) Technical Qualifications: In addition to the information specified in paragraph (a)

(1) of this section, each applicant shall:

(i) demonstrate that its system will, at a minimum, service the 48 contiguous states of the United States (full CONUS);

(ii) certify that its satellite DARS system includes a receiver that will permit end users to access all licensed satellite DARS systems that are operational or under construction; and/or

(iii) identify the compression rate it will use to transmit audio programming. If applicable, the applicant shall identify the compression rate it will use to transmit services that are ancillary to satellite DARS.

(b) Milestone Requirements.

 

[tankedsecondchance]

DO you remember this story ,clearly shows a perception and or intent to avoid the fcc mandated consumer choice granted by allowing full access to either service......

both should have embraced the concept better then they have......

www.twice.com/article/CA6306948.html

By Joseph Palenchar -- TWICE, 2/13/2006
New York — Retailers won't be able to buy home and portable audio devices that are Sirius- and XM-ready for some time under the terms of XM's contracts with suppliers, audio marketers told TWICE.

Suppliers contend that Sirius' growing subscriber base is pressuring them to offer Sirius products, but under their existing contracts with XM, they are barred from offering satellite-ready A/V receivers, HTiBs, compact systems or boomboxes that simultaneously incorporate XM's Connect And Play technology and Sirius' SiriusConnect Home technology. The contracts, however, don't prohibit the XM-ready suppliers from offering a Sirius tuner, separate Sirius-ready products or XM-ready products with built-in Sirius tuners, suppliers said.

The prohibition's duration is two years from the availability of a supplier's first XM-ready product at retail. As a result, early 2007 is the soonest that home products with combined Sirius- and XM-ready technology could be available at retail. The first XM- and Sirius-ready boomboxes won't appear until September 2007 at the earliest.

[EDIT]

[EDIT-post truncated because originating material is copyprotected. Unauthorized use of copyrighted content is in violation of Radio-Info's TOS.]