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Talk Show
Posted on September 30, 200
"This sends a message we're in deep doo-doo." --Robert Toll, CEO of luxury-home builder Toll Brothers, on what the Fed's larger-than-expected half-percentage-point interest rate cut says about the economy, as reported by USA Today It's crunch time for satellite radio: Federal Communications Commission Chairman Kevin Martin says his goal is to reach a decision by yearend on whether to approve a merger of Sirius Satellite Radio (SIRI
) and XM Satellite Radio (XMSR
). The verdict can't come too soon for Sirius CEO Mel Karmazin and XM Chairman Gary Parsons. They've spent millions to blunt opposition to the deal. "In this merger, lawyers will make more money than the bankers," Karmazin says.
Leading the charge against the merger is the National Association of Broadcasters (NAB), which represents traditional radio and TV stations. It argues that if the only two players in satellite merge, local stations and listeners will lose out. "Monopolists have the ability to raise prices and discriminate," David Rehr, NAB president, told Congress. XM and Sirius argue that together they would control just 3% to 4% of the entire radio market.
XM and Sirius have fielded an army of lawyers to sell Washington on the deal. In recent SEC filings, Sirius said it spent $650,000 on lobbyists in the first half of 2007. XM reported it had anted up $580,000. Together, the two hired 13 lobbying firms. At XM, the Palmetto Group's $70,000 tab is so far the largest. At Sirius, Wiley Rein's $420,000 invoice is the biggest. Those numbers are dwarfed by what the NAB has spent: $4.3 million in the first six months of the year. It has used 10 firms, led by the Ashcroft Group, run by the former Attorney General.
Sirius (where Howard Stern stars) and XM (which offers Oprah & Friends) are a bit surprised by the strong resistance to the merger. Karmazin notes that when AT&T (T
) acquired BellSouth for more than $80
Talk Show
Posted on September 30, 200
"This sends a message we're in deep doo-doo." --Robert Toll, CEO of luxury-home builder Toll Brothers, on what the Fed's larger-than-expected half-percentage-point interest rate cut says about the economy, as reported by USA Today It's crunch time for satellite radio: Federal Communications Commission Chairman Kevin Martin says his goal is to reach a decision by yearend on whether to approve a merger of Sirius Satellite Radio (SIRI
) and XM Satellite Radio (XMSR
). The verdict can't come too soon for Sirius CEO Mel Karmazin and XM Chairman Gary Parsons. They've spent millions to blunt opposition to the deal. "In this merger, lawyers will make more money than the bankers," Karmazin says.
Leading the charge against the merger is the National Association of Broadcasters (NAB), which represents traditional radio and TV stations. It argues that if the only two players in satellite merge, local stations and listeners will lose out. "Monopolists have the ability to raise prices and discriminate," David Rehr, NAB president, told Congress. XM and Sirius argue that together they would control just 3% to 4% of the entire radio market.
XM and Sirius have fielded an army of lawyers to sell Washington on the deal. In recent SEC filings, Sirius said it spent $650,000 on lobbyists in the first half of 2007. XM reported it had anted up $580,000. Together, the two hired 13 lobbying firms. At XM, the Palmetto Group's $70,000 tab is so far the largest. At Sirius, Wiley Rein's $420,000 invoice is the biggest. Those numbers are dwarfed by what the NAB has spent: $4.3 million in the first six months of the year. It has used 10 firms, led by the Ashcroft Group, run by the former Attorney General.
Sirius (where Howard Stern stars) and XM (which offers Oprah & Friends) are a bit surprised by the strong resistance to the merger. Karmazin notes that when AT&T (T
) acquired BellSouth for more than $80