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Sirius-XM: Key Senator Opposes Merger

By Staci D. Kramer - Wed 23 May 2007 02:47 PM PST

U.S. Sen. Herb Kohl (D-WI)—chairman of the Senate’s antitrust subcommittee—opposes the proposed merger of satellite radio companies Sirius and XM and has sent the Justice Department and the FCC letters saying just that. He contends a merger “would cause substantial harm to competition and consumers. ... If satellite radio is considered to be a distinct market, this merger is to a two to one merger to monopoly and should be forbidden under the antitrust laws. If satellite radio is a separate market, the combined firm will have the ability to raise price to consumers, who will have no choice to accept the price increase.” Kohl believe it is a separate market, meaning he rejects one of the key arguments made by the two companies. (via Reuters.)

Meanwhile, XM continues to deal with the ripple effects from technical problems that caused major outages for some customers this week. The company is offering refunds for two days of service. They’ll have to do better than making it contingent on a call to customer service. Twice has more.

Posted in: Media, Satellite, VC+M&A



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7 Responses:
  • From Tom Sommer Wed 23 May 2007 04:30 PM

    I wonder if he ask anybody he represents how they feel about that. They would not agree with him. This merger is very important to the sat. radio industry. In my opinion two companies won’t survive, so what happens to consumers when only one company is left standing because one goes bankrupt? Or does the Senator hope they both go bankrupt?

  • From matt Wed 23 May 2007 07:04 PM

    I am a consumer and I am all for the merger
    he does not speak for me. I want to have both xm and sirius channels to chose from. I will even pay more than I am now to get a better selection of channels. N AB has all these azz holes wraped around there anal rings

  • From Ron Fri 25 May 2007 08:48 AM

    Who the hell is this senator and where does he get his information? (From BUSH?) This shouldn’t even be a question or concern for our government! Where do we live? in a communist country or what! Screw this guy!

  • From Richard Thu 04 Oct 2007 12:30 PM

    I think this senator is in the pockets of clear channel…

  • From Carl E. Pentland Thu 04 Oct 2007 12:50 PM

    This Senator is from Wisconsin and is a very liberal committed Democrat.  Only our other Senator Feingold is more liberal than Kohl.  Unforunately he is influenced by the large campaign donations from commercial radio.  He could care less about the peoples welfare he only wants their votes.  Its just this simple, if you want great quality radio and are willing to pay for it do it!!  If not then don’t subscribe to it.  These companies need a merger or they may both go down the tube.

  • From Marvin Pitts Sat 10 Nov 2007 06:42 AM

    I have to agree with the fact that goverment needs to get out of the business and let the market dictate what needs to be done. With goverment control there has never been an improvement to any services because of the cost of goverment regulation. When has goverment ever regulated anything to the point of the cost of that product going down? I would deffinately wonder whose pockets are being lined or protected! If the customers get a subscription rate increase then they should drop the service. If we don’t stand for something, then we’ll fall for anything.

  • From Kelly Mon 03 Dec 2007 09:46 AM

    Can Carl Pentland please contact me via emai.

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