SIRIUS, XM HIGHLIGHT GROWING MOMENTUM IN FAVOR OF MERGER PR Newswire XM Satellite Radio and Sirius Satellite Radio said today that the volume, diversity and strength of the public comments filed with the Federal Communications Commission (FCC) during its public comment period demonstrate persuasively that their merger is in the public interest and should be approved.
"The support for our merger is as diverse as the programming we provide," said Mel Karmazin, CEO of Sirius Satellite Radio. "The thousands of pro merger comments from organizations representing diverse populations and interests, individuals, businesses, and experts plainly demonstrate that the combination of Sirius and XM is in the public interest."
"These FCC comments strongly validate our contention that the merger will produce substantial public interest benefits," said Gary Parsons, Chairman of XM Satellite Radio. "These include greater programming choices, better prices, rigorous competition and more rapid innovation."
Since the FCC opened its docket on the merger, more than 3,500 individuals have filed in support of combining the two companies. The FCC docket also includes positive comments from 20 organizations and businesses, representing a broad spectrum of Americans. Among the most notable names are Circuit City, the NAACP and League of United Latin American Citizens, American Trucking Associations, National Council of Women's Organizations, League of Rural Voters and American Values.
The groups filing comments include a wide array of minority, women, religious and rural organizations who support the merger in part because of its capacity to strengthen the diverse programming satellite radio already provides for their members, and businesses and conservative organizations who tout the impact the merger will have on innovation and competition. Many of the comments also cite the combined company's plan to offer one or more new, lower priced services below $12.95, maintain current services at $12.95 and offer the best of both services at a modest premium over today's price. Others who commented noted the plan to offer a "block and rebate" feature, by which subscribers can opt out of certain channels they find objectionable and receive a credit on their monthly subscription.
These and other benefits have also been detailed in FCC filings by experts and think tanks including former FCC Commissioner Harold Furchtgott-Roth, former FCC Chief Economist Thomas Hazlett and the Competitive Enterprise Institute.
The merger also has received the editorial endorsement of leading newspapers including The Wall Street Journal, USA Today, LA Times and Washington Times.
The following organizations have made public comments in support of the XM-Sirius merger:
The National Association of Broadcasters and its industry allies are expected to file comments today arguing satellite radio comprises its own distinct market and does not compete with terrestrial radio. However, the government filings and statements of numerous broadcast interests, including NAB and companies like Clear Channel, CBS, Spanish Broadcasting System, Entravision, Entercom, Univision, Citadel, Cox, Cumulus Media, Emmis Communications, Beasley and Westwood One, tell a much different story. For example:
"Our broadcasting businesses face increasing competition from new broadcast technologies, such as...satellite television and radio... These new technologies and alternative media platforms compete with our radio and television stations for audience share and advertising revenue, and in the case of some products, allow listeners and viewers to avoid traditional commercial advertisements." - Spanish Broadcasting System, Inc. (2006 Form 10- K, filed March 16, 2007)
"In 2006, we have satellite and Internet radio. And barely a day passes without the introduction of a new competing device or service. But we have news for our competitors: We will beat you -- as we have beaten those change agents in the past." - David K. Rehr, President and CEO, National Association of Broadcasters (2006 NAB Radio Show, September 21, 2006)
"Our broadcasting businesses face increasing competition from new broadcast technologies, such as broadband wireless and satellite television and radio, and new consumer products, such as portable digital audio players and personal digital video recorders." Clear Channel Communications (2005 Form 10-K; page 24)
Sirius and XM will file reply comments by the July 24 deadline. Following that, regulators (FCC and DOJ) will consider the merger. Pending regulatory approval, both companies expect to close on the merger by the end of 2007.
More information on the Sirius-XM merger can be found at http://www.siriusmerger.com or http://www.xmmerger.com. |