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Sirius XM Holdings Inc. Message Board

  • mardermj mardermj Mar 7, 2007 1:07 AM Flag

    Projected DoJ Statement On the Merger

    The law is simple, no niche anti competitive behavior, the merger is dead on arrival. Talking to a bunch of idiot Congressmen provides a show, but little insight into narrow minds at the DoJ.

    The ruling will be simple: "While argument that sat rad is competing in a market with free radio, bottled water competes with tap water without special dispensation or granting monopolies to Deer Park or Appolinaris bottling water companies, for an example. WITHIN the satrad delivery niche, monopoly should not be allowed. Certainly, financial barrier to entry in satrad is high, but SIRI and XM's main costs come not from satellite or infrastructure, but from profligate overspending for content, warring with each other. Entering this internal battle is not the purview of the DoJ. On the contrary, DoJ supports free market forces, and combining SIRI and XM subverts competition. Prices for the service have risen in Dec 2003 April 2004 in a fairly non elastic manner, which is to say price immaterial, so combining the two firms is problematic from cost to consumer standpoint, for which competition exists in the first place. To remove that competition is to give satrad unfair advantage over AM/FM, and recorders in tape, DVD and MP3 formates. The government of the United States has no obligation to reenter the free market to guarentee one or another models success when private oversight errors on the side of spending. Nor is the public interest served by satellite radio especially, even though local weather coast to coast is interesting, local programming and normal AM/FM radio offers listeners a wide choice of material all over the United States for just those services already.

    Without a major public interest, and both parties voluntarily failing to bring an action under the distressed industry redress process, the merger is disapproved.

    (Bababooey is optional)

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