126 replies to this topic

[nosmokeinthelungs]

http://www.nypost.co...eter_lauria.htm

[Hero]

about time..... i knew this would happen and i dont think there will be any monopoly problems either. marketshare just isnt big enough for 2 of them

[Agrimorfee]

Thanks for the link.

[ParticleHustler]

about time..... i knew this would happen and i dont think there will be any monopoly problems either. marketshare just isnt big enough for 2 of them

The whole question is what "market" they are sharing. If it is defined narrowly as satellite radio, then yes, there are big concerns. If it includes terrestrial radio, then they should be OK.

[BobtheSquid]

I'd be surprised if this goes through... the FCC already has kind of telegraphed that it wouldn't allow it. That being said, if it does, as a longtime XM subscriber and occasional Sirius dabbler, I can only hope that a merged network adheres to XM's music-programming philosophy, and not Sirius's. I'd cancel in a heartbeat if the music stations became more like Sirius.

[nosmokeinthelungs]

what is this difference that you speak of?

[BobtheSquid]

XM seems to use to deeper and more varied playlists on its music channels, whereas Sirius has adopted more of a traditional radio approach of using repetitive playlists, sticking to singles or better-known tracks, and going for repetition over variety (although, granted, it's not like it's as severe as terrestrial radio.) Sirius is known for its high-dollar talent, like Howard Stern, but you'll often hear music fans grumble about the programming on the music stations.

I'm often surprised by some of the deeper album tracks I'll hear on XM; for example, I had XM's classic-alternative station, Fred, on all afternoon yesterday, and, over the span of several hours, heard both "The Kiss" and "Hey You!!!" off of the Cure's Kiss Me, Kiss Me, Kiss Me. Not exactly that album's best-known tracks (in fact, the latter song only debuted on the CD version of KM,KM,KM last year when it was reissued).

Here's another example I posted in a previous thread, where I looked up all the different Smashing Pumpkins songs that XM played in a three-week span:

I just did a search on xmfan.com. Here are the Pumpkins songs that XM's channels have played since Aug. 1 (I've eliminated repeats).

Rhinoceros
1979
Cherub Rock
Muzzle
The End Is The Beginning
Today
Ava Adore
Eye
Sun
My Dahlia
Drown
Zero
Bullet With Butterfly Wings
Disarm
Thirty Three
Rocket
Tonight Tonight
Clones (We're All)
Mayonaise
Whir
Everlasting Gaze
Perfect
Never Let Me Down
Siva
Starla
I Am One
Stand Inside You
A Night Like This
Bury Me
Appels + Oranjes
Geek U.S.A.
Landslide
In The Arms Of Sleep
Real Love
Frail and Bedazzled
Destination Unknown
Behold, The Night
Glynis
Shame
French Movie
We Only Come Out at Night

[BobtheSquid]

SIRIUS and XM to Combine in $13 Billion Merger of Equals

Provides Consumers with Enhanced Content, Greater Choices and Accelerated Technological Innovation

Enables Satellite Radio to Better Compete in Rapidly Evolving Audio Entertainment Industry

Extraordinary Value Creation for Shareholders

Mel Karmazin to Serve as Chief Executive Officer and Gary Parsons to Serve as Chairman of Combined Company

WASHINGTON and NEW YORK, Feb. 19 /PRNewswire-FirstCall/ -- XM Satellite
Radio (Nasdaq: XMSR) and SIRIUS Satellite Radio (Nasdaq: SIRI) today announced
that they have entered into a definitive agreement, under which the companies
will be combined in a tax-free, all-stock merger of equals with a combined
enterprise value of approximately $13 billion, which includes net debt of
approximately $1.6 billion.

Under the terms of the agreement, XM shareholders will receive a fixed
exchange ratio of 4.6 shares of SIRIUS common stock for each share of XM they
own. XM and SIRIUS shareholders will each own approximately 50 percent of the
combined company.

Mel Karmazin, currently Chief Executive Officer of SIRIUS, will become
Chief Executive Officer of the combined company and Gary Parsons, currently
Chairman of XM, will become Chairman of the combined company. The new
company's board of directors will consist of 12 directors, including Messrs.
Karmazin and Parsons, four independent members designated by each company, as
well as one representative from each of General Motors and American Honda.
Hugh Panero, the Chief Executive Officer of XM, will continue in his current
role until the anticipated close of the merger.

The combined company will benefit from a highly experienced management
team from both companies with extensive industry knowledge in radio, media,
consumer electronics, OEM engineering and technology. Further management
appointments will be announced prior to closing. The companies will continue
to operate independently until the transaction is completed and will work
together to determine the combined company's corporate name and headquarters
location prior to closing.

The combination creates a nationwide audio entertainment provider with
combined 2006 revenues of approximately $1.5 billion based on analysts'
consensus estimates. Today the companies have approximately 14 million
combined subscribers. Together, SIRIUS and XM will create a stronger platform
for future innovation within the audio entertainment industry and will provide
significant benefits to all constituencies, including:

* Greater Programming and Content Choices -- The combined company is
committed to consumer choice, including offering consumers the ability
to pick and choose the channels and content they want on a more a la
carte basis. The combined company will also provide consumers with a
broader selection of content, including a wide range of commercial-free
music channels, exclusive and non-exclusive sports coverage, news,
talk, and entertainment programming. Together, XM and SIRIUS will be
able to improve on products such as real-time traffic and rear-seat
video and introduce new ones such as advanced data services including
enhanced traffic, weather and infotainment offerings.

* Accelerated Technological Innovation -- The merger will enable the
combined company to develop and introduce a wider range of lower cost,
easy-to-use, and multi-functional devices through efficiencies in chip
set and radio design and procurement. Such innovation is essential to
remaining competitive in the consumer electronics-driven world of audio
entertainment.

* Benefits to OEM and Retail Partners -- The combined company will offer
automakers and retailers the opportunity to provide a broader content
offering to their customers. Consumer electronics retailers, including
Best Buy, Circuit City, RadioShack, Wal-Mart and others, will benefit
from enhanced product offerings that should allow satellite radio to
compete more effectively.

* Enhanced Financial Performance -- This transaction will enhance the
long-term financial success of satellite radio by allowing the combined
company to better manage its costs through sales and marketing and
subscriber acquisition efficiencies, satellite fleet synergies, combined
R&D and other benefits from economies of scale. Wall Street equity
analysts have published estimates of the present value of cost synergies
ranging from $3 billion to $7 billion.

* More Competitive Audio Entertainment Provider -- The combination of an
enhanced programming lineup with improved technology, distribution and
financials will better position satellite radio to compete for
consumers' attention and entertainment dollars against a host of
products and services in the highly competitive and rapidly evolving
audio entertainment marketplace. In addition to existing competition
from free "over-the-air" AM and FM radio as well as iPods and mobile
phone streaming, satellite radio will face new challenges from the rapid
growth of HD Radio, Internet radio and next generation wireless
technologies.

"We are excited for the many opportunities that an XM and SIRIUS
combination will provide consumers," said Gary Parsons, Chairman of XM
Satellite Radio and Hugh Panero, CEO of XM Satellite Radio, in a joint
statement. "The combined company will be better positioned to compete
effectively with the continually expanding array of entertainment alternatives
that consumers have embraced since the Federal Communications Commission (FCC)
first granted our satellite radio licenses a decade ago."

"This combination is the next logical step in the evolution of audio
entertainment," said Mel Karmazin, CEO of SIRIUS Satellite Radio. "Together,
our best-in-class management team and programming content will create
unprecedented choice for consumers, while creating long-term value for
shareholders of both companies. The combined company will be positioned to
capitalize on SIRIUS and XM's complementary distribution and licensing
agreements to enhance availability of satellite radios, offer expanded content
to subscribers, drive increased advertising revenue and reduce expenses. Each
of our companies has a strong commitment to providing listeners the broadest
range of music, news, sports and entertainment and the best customer service
possible. We look forward to sharing the benefits of the exciting new growth
opportunities this combination will provide with all of our stakeholders."

The transaction is subject to approval by both companies' shareholders,
the satisfaction of customary closing conditions and regulatory review and
approvals, including antitrust agencies and the FCC. Pending regulatory
approval, the companies expect the transaction to be completed by the end of
2007.

SIRIUS's financial advisor on the transaction is Morgan Stanley and
Simpson Thacher & Bartlett LLP and Wiley Rein LLP are acting as legal counsel.
XM's financial advisor on the transaction is J.P. Morgan Securities Inc. and
Skadden Arps, Slate, Meagher & Flom LLP; Jones Day; and Latham & Watkins LLP
are acting as legal counsel.

[Origin]

I'd be surprised if this goes through... the FCC already has kind of telegraphed that it wouldn't allow it.

Fuck the FCC. This is good for the consumer. I think. There's quality programming choices on both, and I don't want to sign up for both services.

[tweed]

offering consumers the ability to pick and choose the channels and content they want on a more a la carte basis.

This could be a negative. I don't wanna have to pay a higher subscription rate for a wider range of content. I hope they're smart about how they structure this.

[BobtheSquid]

This is definitely bad news. The very first thing they'll do is jack up the subscription rate. There's also some talk that existing subscribers may need to buy new receivers after they merge.

[nobodies]

I thought I read a couple weeks ago that the FCC had already given the thumbs up. Maybe it was just a preliminary thing and there's still hurdles to jump through. Anyway, I posted earlier on the other thread with the news, and I'll say the same thing again: I just hope some of the specialty Sirius music stations stick around unscathed. Particularly, Little Stevens Underground Garage and Outlaw Country. I'd say those two channels eat up about 90% of my Non-Stern listening. I would love to get XM's punk station. Sirius's one crack a "punk" station (Faction) is pretty much just nu-metal, hip hop, and some Warped bands. Station sucks. I'm not sure how much better XM is...but it can't be any worse.

[ParticleHustler]

Which would really suck for those of us who bought cars with built-in receivers. I'm not sticking some ugly-ass receiver on the dash of my car. They can offer to upgrade me for free, or screw off. I bet they offer a basic plan that includes most of the music and talk/news stations, but then we'll have to pay extra for the MLB/NFL/NHL/Stern/A&O, etc., channels. So even if you want to duplicate what you currently have, it will cost more. That's my guess.

[nobodies]

This is definitely bad news. The very first thing they'll do is jack up the subscription rate. There's also some talk that existing subscribers may need to buy new receivers after they merge.

Maybe I'm an optimist, but I doubt they'll raise subscription rates. $13 per month is already pretty high, I think they'd have a hard time selling anything higher since the subscribers have already decided what they like. For example, it would be hard hard to justify an increase to XM subscribers on the grounds that they'll be receiving Stern, since they've already decided they don't want Stern.

Plus, almost all of the music content overlaps (yeah I know some say XM is better at music, but I don't think the gap is as wide as some believe).

[BobtheSquid]

This is definitely bad news. The very first thing they'll do is jack up the subscription rate. There's also some talk that existing subscribers may need to buy new receivers after they merge.

Maybe I'm an optimist, but I doubt they'll raise subscription rates. $13 per month is already pretty high, I think they'd have a hard time selling anything higher since the subscribers have already decided what they like. For example, it would be hard hard to justify an increase to XM subscribers on the grounds that they'll be receiving Stern, since they've already decided they don't want Stern.

Plus, almost all of the music content overlaps (yeah I know some say XM is better at music, but I don't think the gap is as wide as some believe).

I guarantee you that subscriptions will increase. Maybe not immediately, but it'll happen. The only thing keeping them at $13 now is the competition.

[nobodies]

Which would really suck for those of us who bought cars with built-in receivers. I'm not sticking some ugly-ass receiver on the dash of my car. They can offer to upgrade me for free, or screw off.

I bet they offer a basic plan that includes most of the music and talk/news stations, but then we'll have to pay extra for the MLB/NFL/NHL/Stern/A&O, etc., channels. So even if you want to duplicate what you currently have, it will cost more. That's my guess.

They'd face massive consumer fraud suits if they started charging extra for services that were sold and advertised as all inclusive. At worst, us original subscribers will be grandfathered in. Also, XM already tried the multiple pricing plan strategy. Opie and Anthony, and Playboy Radio (and maybe others???) used to cost extra. That failed miserably and got scrapped.

[BobtheSquid]

Well, the press release does say they're going to move to a la carte pricing. I'd be shocked if that meant you could literally choose every station you want, but I suspect they'll go the cable TV route, and there will be different packages you can subscribe to -- which will probably be how they ease the blow of a major hike in the total subscription package. Don't wanna pay $30/a month for everything? Fine, pick one of these packages that only gives you half or 1/3 of the channels...

[ParticleHustler]

Not to mention, Playboy and A&O are hardly Stern and the NFL. Stern already got people to switch to satellite - that was the hard part. Now that they've got them, getting them to pay more is going to be easy. And the NFL package, and to a lesser extent MLB, NHL, NASCAR, and college sports are all a big draw. I could see them packaging sports in one category for $7.50 extra, or something like that. It's coming.

[The Gooch]

I'd be surprised if this did anything but enhance the total package that you get for your $13 a month. After all, they are still a fledgling enterprise, and they have to keep their base happy. After all, we continue to pay for Howard's or Oprah's salary. If they did a drastic rate change, or made consumers pay significantly more for a Premium package, you would get a lot of frustration from current subscribers.

[nosmokeinthelungs]

you are all wrong