FCC Could Block Sirius Merger With XM
Sirius (SIRI) and XM (XMSR) today announced that the companies would merge in a combination that would give each company’s shareholders 50% of the new firm. The merger has one huge hurdle, the FCC. And, the agency may have good…
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Sirius (SIRI) and XM (XMSR) today announced that the companies would merge in a combination that would give each company’s shareholders 50% of the new firm.
The merger has one huge hurdle, the FCC. And, the agency may have good reason to block the deal.
Competition between the two companies has almost certainly kept the monthly rate to subscribers at around $12. The mergered company would almost certainly raise rates to increase revenue and try to pay down the huge debt of the companies. It is one of the reasons that the federal goverment resisted newspaper mergers for so long.
The two companies would have to make a case that they would not survive without the merger.
Douglas A. McIntyre
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
