Sirius/XM: You Heard It Here First!
Posted by Keith Sharfman on February 19, 2007
Today’s report that Sirius and XM plan to merge vindicates the antitrust analysis offered here last June.
Regulators should analyze the merger from a broad “audio market” perspective that includes terrestrial radio. Considering the extensive non-satellite content available to listeners, and considering as well the efficiencies associated with the Sirius/XM combination, it is reasonable to conclude that consumers will benefit from the deal and that regulators should therefore allow it (after careful review, to be sure).
The question I’m left with is: how long will it take for GM/Ford to follow?
6 Responses to “Sirius/XM: You Heard It Here First!”
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Josh said
Wow! So apparently the parties disagree with the FCC Chairman’s contention that their licenses prohibit a merger … or perhaps he has changed his mind?
Keith Sharfman said
Or perhaps the parties are prepared to litigate the question?
John said
They both offer distinctly different content, it isn’t like DISH and DirectTV merging.
I don’t see any Anti-Trust concerns, the operating costs will be so much lower as far as eliminating duplicate satellites and infrastructure.
This is a great day for Satellite subscribers.
Paul Stancil said
I was thinking “sound waves” as the relevant product market. Too broad?
David Zaring said
I’m all for deregulation (which lifting the bar would I guess be in this case), but not when it totally affects my life. I can’t live without satellite, terrestrial radio is horrible, and XM is much, much better than Sirius. I’d really prefer to pay 12 bucks a month than whatever Mel Karmazin would like to charge me for whatever he decides to program.
They’re really relying on the case that HD radio a) exists, and b) is everywhere, no?
TRUTH ON THE MARKET » Some Weekend Blog Reading said
[...] Bill of Rights”.Thom Lambert on Prerequisites.John on Please No “Passenger’s Bill of Rights”.David Zaring on Sirius/XM: You Heard It Here First!.Thom Lambert on Learning Economics Online [...]