Michael Copps, a member of the FCC, said that the tests for some upcoming mergers should be set higher. Two deals over which he showed special concern were the Sirius (NASDAQ: SIRI) merger with XM (NASDAQ: XMSR) and the News Corp (NYSE: NWS) purchase of Dow Jones (NYSE: DJ).
Mr Copps' worries about Dow Jones are simple enough. He is troubled that Mr. Murdoch will have such a large concentration of media in New York
He shows even more interest in the Sirius plan. The Wall Street Journal writes that "as one of five FCC commissioners, Mr. Copps will cast a vote on whether the Sirius-XM merger and Tribune sale should be allowed to proceed." Copps may want the satellite radio companies to give more guarantees on prices charged to consumers.
XM and Sirius stocks have both moved off lows as it appeared that approval for their merger looks more certain. The stocks are sill severely depressed. Copps comments may help push them down again.
While the satellite radio company merger may face more opposition than was anticipated recently, the firms still have a compelling argument about how competitive the marketplace is. They continue to lose money and, without some change in their structures, their debt loads could sink them. Perhaps someone will point that out to Copps.
Douglas A. McIntyre is a partner at 24/7 Wall St.



Reader Comments (Page 1 of 1)
9-28-2007 @ 11:23AM
Richard Varsalona said...
Hey Doug: What gauls me is you have coops the ignorant saying one thing as the commissioner and the chairman giving signals in the other direction.Why can't they just shut up and get the passage over with.By the way ,why aren"t schumer and clinton backing sirius with corp offices in N.Y. Haasn't Sirius and xm forked over enough payola to their lobbyist friends on both sides of the isle?
9-28-2007 @ 11:47AM
Ernie Silkey said...
I think it is great that Mr. Copps wants to secure fair prices for the consumers, but I think he should be as concerend about the most flexible selection of stations for the consumer. Then the FCC needs to apply that same standard to Cable TV. The FCC has done an awful job of protecting consumers against Cable TV unfairness. That being said, I also want to be sure money from these large organizations opposing the merger is not influencing his decision to vote against the merger. Satellite Radio has a lot more competition than a lot of other mergers and regulations they have allowed. I think they should allow the merger with some strong regulation control of issues that protect the consumer and then they need to apply that to Cable, Dish and Direct TV. We are paying way to much for what we get on TV, we have no real choice of channels and then to add insult to injury the FCC gave the TV networks more time per hour to to allow advertising. We are paying for a service and the FCC has allowed way to much advertising on pay TV services. When I see the infomercials they allow it just shows how unfair the FCC has been to the public. Allow the darn merger and stop dragging these companies through the mud and then do your job FCC. REGULATE!!!!!!!!!!!!!!!!!!! Represent the best interest of the PUBLIC. They have not done that for a very long time.
9-28-2007 @ 12:51PM
bigbird said...
I believe that the merger will go thru. If not both companies will file bankruptcy. Both companies are in financial diffculty. The government should not let this happen. (Investor concern's)
9-29-2007 @ 9:51AM
EMIL J KOVACH JR said...
Let's See If I Got This Right--"If We Lose Money, As We Pay Mel 30 Mil A Year ( All Inclusive), That's A GOOd Arguement The A Merger Is Justified, And ALL The Programming And News And Information, Will Be Under The Sole Control Of The CEO--That's a " BETTER" Choice For The Consumer?
Are We Talking About Losing Money--Or " More Choice"
It's A Bitch When The Competition Eats Your lunch,
Don't BUY The Competition--BEAT The Competition.
The Market place Would Pay ANY Price If The Programming Were There.
130 Channels--Of WHAT?
Bubba?
EMIL J KOVACH Jr
10-01-2007 @ 2:39PM
Rob said...
I can tell you this. I would be very disappointed if Sirius and XM went bankrupt. I am absolutely addicted to satalite radio. I never thought about satalite radio until it came in a car that I bought and now I couldn't live without it.
12-04-2007 @ 7:41PM
TJ said...
No one jerk from the fcc should open his paid off mouth.There are more things in life then proctecting the monopoly named nab.I just hope they did not get to many envelopes to the fcc.It
is becoming to look like doing bussiness with the corrupt chinese.