Filed by Sirius Satellite Radio Inc.
Pursuant to Rule 425 under the
Securities Act of 1933 and deemed filed
pursuant to Rule 14a-6 under the
Securities Exchange Act of 1934
Subject Company: XM Satellite Radio Holdings Inc.
Commission File No.: 0-27441
This communication contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements include, but are not limited to,
statements about the benefits of the business combination transaction involving Sirius Satellite
Radio Inc. and XM Satellite Radio Holdings Inc., including potential synergies and cost savings and
the timing thereof, future financial and operating results, the combined companys plans,
objectives, expectations and intentions with respect to future operations, products and services;
and other statements identified by words such as anticipate, believe, plan, estimate,
expect, intend, will, should, may, or words of similar meaning. Such forward-looking
statements are based upon the current beliefs and expectations of SIRIUS and XMs management and
are inherently subject to significant business, economic and competitive uncertainties and
contingencies, many of which are difficult to predict and generally beyond the control of SIRIUS
and XM. Actual results may differ materially from the results anticipated in these forward-looking
statements.
The following factors, among others, could cause actual results to differ materially from the
anticipated results or other expectations expressed in the forward-looking statement: general
business and economic conditions; the performance of financial markets and interest rates; the
ability to obtain governmental approvals of the transaction on a timely basis; the failure of
SIRIUS and XM stockholders to approve the transaction; the failure to realize synergies and
cost-savings from the transaction or delay in realization thereof; the businesses of SIRIUS and XM
may not be combined successfully, or such combination may take longer, be more difficult,
time-consuming or costly to accomplish than expected; and operating costs and business disruption
following the merger, including adverse effects on employee retention and on our business
relationships with third parties, including manufacturers of radios, retailers, automakers and
programming providers. Additional factors that could cause SIRIUS and XMs results to differ
materially from those described in the forward-looking statements can be found in SIRIUS and XMs
Annual Reports on Form 10-K for the year ended December 31, 2006 and Quarterly Reports on Form 10-Q
for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007, which are filed with
the Securities and Exchange Commission (the SEC) and available at the SECs Internet site
(http://www.sec.gov). The information set forth herein speaks only as of the date hereof, and
SIRIUS and XM disclaim any intention or obligation to update any forward looking statements as a
result of developments occurring after the date of this communication.
Important Additional Information and Where to Find It
This communication is being made in respect of the proposed business combination involving
SIRIUS and XM. In connection with the proposed transaction, SIRIUS has filed with the SEC a
Registration Statement on Form S-4 containing a definitive Joint Proxy Statement/Prospectus and
each of SIRIUS and XM may file with the SEC other documents regarding the proposed transaction. The
Joint Proxy Statement/Prospectus was first mailed to stockholders of SIRIUS and XM on or about
October 9, 2007. INVESTORS AND SECURITY HOLDERS OF SIRIUS AND XM ARE URGED TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS, AS WELL AS OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR
ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION.
Investors and security holders can obtain free copies of the Registration Statement and the
Joint Proxy Statement/Prospectus and other documents filed with the SEC by SIRIUS and XM through
the web site maintained by the SEC at www.sec.gov. Free copies of the Registration Statement and
the Joint Proxy Statement/Prospectus and other documents filed with the SEC can also be obtained by
directing a request to Sirius Satellite Radio Inc., 1221 Avenue of the Americas, 36th
Floor, New York, NY 10020, Attention: Investor Relations or by directing a request to XM Satellite
Radio Holdings Inc., 1500 Eckington Place, N.E. Washington, DC 20002, Attention: Investor
Relations.
SIRIUS, XM and their respective directors and executive officers and other persons may be
deemed to be participants in the solicitation of proxies in respect of the proposed transaction.
Information regarding SIRIUS directors and executive officers is available in its Annual Report on
Form 10-K for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007, and
its proxy statement for its 2007 annual meeting of stockholders, which was filed with the SEC on
April 23, 2007, and information regarding XMs directors and executive officers is available in
XMs Annual Report on Form 10-K, for the year ended December 31, 2006, which was filed with the SEC
on March 1, 2007 and its proxy statement for its 2007 annual meeting of stockholders, which was
filed with the SEC on April 17, 2007. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect interests, by security holdings or
otherwise, is contained in the Joint Proxy Statement/Prospectus filed with the SEC.
***
SIRIUS website, which is available at www.SIRIUSmerger.com and has information about SIRIUS
proposed merger, has been updated. The updates include the information being filed herewith.
In addition, the In the News page of the website also contains links to the following
third-party articles:
chicagotribune.com
TRIBUNE EDITORIAL BOARD INTERVIEW: MEL KARMAZIN
A conversation with Mel Karmazin, CEO of Sirius Satellite Radio
November 9, 2007
Mel Karmazin, chief executive officer of Sirius Satellite Radio, met with the Tribune editorial
board Wednesday to discuss the proposed merger of Sirius with XM Satellite Radio, shock jock Howard
Stern and the intense competition in media markets.
Tribune: Why should the Federal Communications Commission and the Justice Department approve the
merger of Sirius and XM Satellite Radio?
Karmazin: Arbitron says that XM and Sirius together represent 4 percent of the radio listening
market. Its bizarre for me to think that anybody could think that in this whole area of audio
entertainment there isnt plenty of competition, and new competition coming every day. Not only do
we compete with all of the radio stations that exist, we also compete with all of the other
alternatives that have come along since weve gotten our license.
We currently compete with free [radio].
Youre listening to this boring AM and FM radio thats around. And one day, you want satellite
radio, or you buy a car that has satellite radio, and after a trial period you decide you dont
want to have satellite radio, and then you go back to free. So when we compete with free, were
more apt to get a subscriber at $6.99 than at $12.95. So when youre a company that has lost all of
this money, and we are continuing to lose money, the ability to reduce prices which is what we
would like to do doesnt happen.
The way it happens is through this merger. The efficiencies have been estimated between $3
[billion] and $9 billion. Our plan would be that we would offer consumers lower prices and more
choice. By giving them lower prices and more choice, including a la carte offerings, we think that
serves the public interest. From our point of view, the merger should be a no-brainer.
Tribune: What happens if the FCC does not approve the merger?
Karmazin: Sirius will sue.
Tribune: Was the Howard Stern deal a winner? He all but credits you for saving his life, his
career.
Karmazin: Im not sure Id like to be known for that. Howard got $80 million a year in cash. To
make that deal work, you need a million subscribers paying $120 a year or $12.95 a month.
The day I started, which was a month after he started, there were 700,000 [Sirius] subscribers. Our
last number that we issued was 7.7 million. Now, if you ask Howard, those 7 million subscribers all
came because of him. But, do we believe that we received over a million subscribers [because of
Stern]? Yes. I think Howard has helped satellite radio.
Tribune: There was all this buildup about what Stern would be like once he had the shackles off.
Did you get what you expected?
Karmazin: Part of his act was that hed always complain about things. Well, hes a pretty happy guy
now. It used to be better radio when he was bitching, right? But he doesnt have the FCC [Federal
Communications Commission] to complain about. From my point of view, just using the F-word or
using some of the language that youre allowed to use on satellite radio that you couldnt use in
terrestrial radio, I mean, at my age, I dont find that to be the attraction. Ive always thought
that Howard was a comedian. I used to commute to work, Id listen to him to make my commute go
better.
Tribune: What is your take on Google announcing it was moving toward wireless phones?
Karmazin: When I see these announcements, my hope is that somebody at the Department of Justice and
the FCC are reading these same announcements. Because Im aware of all of this competition. Im
just hoping theyre seeing it as well.
Ive never seen as quick a movement on technology. The consumer has sort of won, right? The
consumer is now able to get all of his content, whatever kind of content he wants whether it be
video, whether it be audio, whether you want it in your car, you want it in your home, you want it
while youre walking down the street, you want it in any form. A company, in order to survive, is
going to have to have great content.
Tribune: Do you censor your own channels?
Karmazin: Someone has to draw the line. We censor ourselves on where the line is. Our president of
programming, its his responsibility for everything that comes through his speakers. I hear things
from time to time that I disagree with and I will discuss it with him. You have to have that
responsibility and I think that everybody does. But in our case where the FCCs issue was that you
say the F-word and youre gonna get fined, now we dont have that issue, and our talk-show hosts
do say the F-word from time to time, but I want to make sure theyre not saying it for the shock
value.
FCC Action Sparks Optimism On XM-Sirius Deal
Forbes.com
Ruthie Ackerman, 11.06.07, 11:30 PM ET
The Federal Communications Commission doesnt ring twice. So when news broke Tuesday that the FCC
had sent XM Satellite Radio Holdings and Sirius Satellite Radio questionnaires last week seeking
detailed information pertaining to their planned merger as well as their business operations over
the last two years, investors bet it meant the deal will win approval.
Sirius shares shot up 4.8%, or 16 cents, to $3.51 at the close on Tuesday, while XMs shares
soared 11.7%, or $1.55, to $14.82.
Bear Stearns analyst Robert Peck said the requests were extremely detailed and structured around
four topics including corporate documents and agreements, studies and analyses, technical
questions, and claimed public interest benefits. The FCC also devoted a whole section to requests
for information on interoperable radios, which would allow programming for both services to run on
satellite radios. The FCC asked both companies to respond to the requests by November 16.
Given the specificity of the questions, Peck said, he wouldnt be surprised if the FCC was close to
finalizing its order on the merger. Given the tight deadline the companies have to respond and the
fact that the FCC still plans to make its decision by the end of the 180-day period, which ends on
December 6, Peck thinks the FCCs urgency is a positive sign. The Department of Justice likely is
close to allowing the deal, which would necessitate the FCC to expeditiously complete the
documentation process, Peck said. If the Department of Justice were close to denying the deal,
the need for such detailed information would not have arisen in the first place.
Peck recently announced his revised synergy estimate on the value of the two companies once they
merged at $5 billion, implying Sirius could be worth about $5.50 per share and XM could be worth
$23.50 per share in fiscal year 2008.
Meanwhile, on October 25, XMs tumbled after the company announced that its third-quarter loss
jumped 70.1% to $145.4 million, or 47 cents per share, from $85.5 million, or 32 cents per share, a
year ago.
The widening loss at XM, which has never had a profitable year, makes a successful outcome of its
proposed merger with Sirius even more important. (See XM Sinks Further Into The Red) The
companies are hoping their combination will boost profitability with big cost savings. (See XM and
Sirius: When Satellites Collide).
The FCC and Department of Justice are reviewing the merger request to deem whether its legal under
antitrust regulations. Shareholders of both XM and Sirius are slated to vote on the proposed
roughly 50-50 ownership on November 13. If approved, the union would not be sealed until the
Justice Department and the FCC sign the dotted line.
XM + Sirius = Patience
The Motley Fool
http://www.fool.com/investing/high-growth/2007/11/06/xm-sirius-patience.aspx
Rick Aristotle Munarriz
November 6, 2007
Is this what were down to? The FCC is sending out a questionnaire to Sirius (Nasdaq: SIRI) and XM
(Nasdaq: XMSR), requesting even more information? It wants to know about content overlap and radio
interoperability. Hmmm. Dont you think these questions could have been raised when the merger was
first announced nearly nine months ago?
A lot has happened in that time. An entire baseball season has played itself out, and those cats
play more than 160 games before heading into the postseason!
Then again, this is probably the most encouraging sign yet that the two companies will be allowed
to combine within the next few months, if not sooner. The deal regulators are now like a girl at
the bar who has dodged your advances but hasnt shot you down completely. All Mel Karmazin needs
now is one more drink and the perfect pickup line to seal the deal.
A hookup didnt seem possible back in February. There were too many negative precedents, including
the satellite television deal between DIRECTV (NYSE: DTV) and DISH Network parent EchoStar (Nasdaq:
DISH) that was shot down five years ago.
However, Sirius and XM have responded like champs to every hoop that they have been asked to jump
through. They are now on record as saying that lower-priced plans will be available post-merger, a
major sticking point with critics of the deal.
So now its time for the FCC to jump through many of those hoops. If the deal goes through, which
concessions must take place? Which assets need to be sold off? What assurances must it require?
XM and Sirius are likely to comply. Both companies continue to lose money as they grow their
subscriber bases, though a combination would result in billions in realized savings. Now with more
than 16 million subscribers combined, the long wait has actually worked to the deals advantage.
Its not just the long baseball season that has played itself out. A lot has happened since
February.
|
|
|
Some carmakers announced the availability of terrestrial radio-friendly HD
receivers. |
|
|
|
|
Audio jacks for Apple (Nasdaq: AAPL) iPods are standard equipment in even more
cars. |
|
|
|
Apple rolled out the iPhone and iPod Touch, making music even more portable
via WiFi. |
|
|
|
|
Napster (Nasdaq: NAPS) and RealNetworks (Nasdaq: RNWK) have grown their base
of music service subscribers. |
It all adds up to an even more competitive landscape in audio content delivery than where we were
when XM and Sirius were proposing to get hitched.
The FCCs got questions? I know why. Its because it already knows the inevitable answer.
Other things to read before the wedding invitation arrives:
|
|
|
Save the Date, Satellite Radio |
|
|
|
|
The Satellite Radio Wedding Album |
|
|
|
|
Before XM Kisses Sirius |
Radio
& Records
Originally Posted On Nov 2, 2007 6:57 PM ET
Analyst: DOJ Will Clear Satcaster Merger
By Jeffrey Yorke
Shares of Sirius and XM jumped 5% apiece Friday (Nov. 2) after Cowen & Co. analyst Tom Watts sent a
morning note to his clients that Thomas Barnett, assistant attorney general for the Justice
Departments Antitrust Division, will approve the proposed $13.6 billion merger between the two
satellite radio companies.
In his Quick Take note, Watts said that the approval would come despite a staff recommendation
against the deal, which could be heard as early as next week. Watts said the assistant AGs
acting contrary to the recommendations of his staff would be similar to the DOJs approval of
Whirlpools acquisition of Maytag. Last year, Whirlpool bid to acquire Maytag, consolidating the
U.S. dishwasher market to a 50% share and the washer/dryer market to a 70% share. While the DOJ
staff was positioning to block the deal and had even taken sworn testimony from competitors and
suppliers to prepare a court challenge to the deal it was approved by Barnett.
We continue to expect both DOJ and FCC approval of the deal, Watts wrote. Denying the deal would
have to be based on the ludicrous position that satellite radio does not compete with terrestrial
radio and any other form of mobile communications.
Watts added that he believes a decision could be as soon as next week.
Nearly 60 million shares of SIRI traded hands Friday as the stock price increased 16 cents to close
at $3.28, while 6.7 million shares of XMSR were sold, ending the day with a gain of 67 cents to
$13.12 a share.
Meanwhile, ISS, the independent proxy advisory firm, on Friday recommended that Sirius and XM
shareholders vote in favor of the proposed merger. The recommendation comes on the heels of same
recommendation from Glass, Lewis & Co. earlier in the week.
Orbitcast
More support for the merger coming in...
3 comments
Monday, November 5, 2007 at 10:59 AM
Tags:
Merger,
Merger Support,
Satellite Radio,
Sirius,
XM
XM and Sirius have just issued a press release highlighting additional support for their pending
merger.
Among those cited in the release are NASCAR and Senators John Ensign (R-NV) and Jim DeMint (R-SC),
as well as some on-air talent like Former U.S. Senator Bill Bradley, Tony Hawk and progressive talk
radio/television personality Bill Press.
We already saw the Senators support last week, though it would be nice to see some additional
support from others on The Hill.
Then theres NASCAR Digital Entertainment, which filed some comments with the FCC on behalf of
NASCAR fans who subscribe to satellite radio:
We hope that the proposed merger will lead to more flexible programming options for consumers,
which will lead to an increase in the number of people that receive NASCAR-related satellite radio
programming. Also, I understand that, post-merger, NASCAR fans that are satellite radio subscribers
will be able to enjoy the best of both SIRIUS and XM without having to purchase two radios or pay
for two separate subscriptions.
As well as other comments:
Merger synergies will decrease duplicative programming and result in expanded variety and more
unique content unavailable anywhere else, wrote Bill Bradley
...the merger will allow the new company to offer a variety of exciting new programming packages,
some of which will enable subscribers to chose specific channels at lower monthly prices than are
available today, wrote Tony Hawk.
I support the merger because it will best serve the listening public by providing a strong,
national platform for the great diversity of voices and opinions that are the fabric of America
especially progressive voices, which are seldom heard on terrestrial radio, said Bill Press.
I guess its always a good thing to flex some PR muscle and highlight support. And I understand the
underlying message: government, content partners, and hosts/employees all support the merger but
is it me, or does this seems somewhat... uninspired?
In addition, the What People Are Saying and Merger Resources pages of the website also
contain links to the following information included on the website:
.. . 217 8th. St., S.E. ... Washington, D.C. 20003 .. . The Bill Press Show November 7, 2007
Honorable Kevin J. Martin Chairman, FCC 455 12th. St., SW Washington, D.C. 20554 Dear Chairman
Martin: As host of The Bill Press Show, heard daily, 6-9 a.m., on Sirius Left, Channel 146, I am
writing to strongly endorse the proposed merger of Sirius and XM Satellite Radio. I support the
merger because it will best serve the listening public by providing a strong, national platform for
the great diversity of voices and opinions that are the fabric of America especially progressive
voices, which are seldom heard on terrestrial radio. Satellite radio is everywhere. It offers a
wide menu of listening options, from news to music to talk. And, as I can tell from calls to my own
show, it is attracting a growing number of listeners from across the political spectrum. Combining
the forces of Sirius and XM, I believe, will only make for better programming, expanded reach,
lower prices, and ever more listeners. I respectfully urge your timely approval of the Sirius and
XM merger as in the best interest of radio listeners everywhere. Sincere regards, Bill Press . . .
. . . . . . . . . . . . . . . . . . . . . . . . . The radio revolution has begun. |
October 15,2007 Mr. Thomas Barnett Assistant Attorney General Antitrust Division United States
Department of Justice 950 Constitution Avenue, NW Washington, DC 20530 Dear Assistant Attorney
General Barnett: On behalf ofNASCAR Digital Entertainment, LLC (NASCAR Digital), I write in
support of the proposed merger between XM Satellite Radio and Sirius Satellite Radio Inc. We
believe that the proposed merger will result in a stronger satellite radio platform for
NASCAR-related programming in the audio entertainment market and will increase consumer choices on
the one platform among NASCAR fans. NASCAR and its drivers have a number of programming
partnerships with satellite radio. Today, Sirius, the Official Satellite Radio Partner ofNASCAR®,
broadcasts turn-by-turn coverage of every race, including the NASCAR NEXTEL Cup Series, NASCAR
Busch Series, and NASCAR Craftsman Truck Series races. Sirius also offers ten channels of
driver-to-crew in-car audio during races, giving race fans the inside details on their favorite
drivers. Additionally, Sirius broadcasts NASCAR-related news and information, featuring programming
by Tony Stewart, John Andretti, and Buddy Baker. XM features several NASCAR drivers on XM Sports
Nation, Channel 144, including Dale Earnhardt, Jr., Jimmie Johnson, and Michael Waltrip. Satellite
radio has proven to be a great way for NASCAR fans to get all the important news and updates on
race day and beyond. We hope that the proposed merger will lead to more flexible programming
options for consumers, which will lead to an increase in the number of people that receive
NASCAR-related satellite radio programming. Also, I understand that, post-merger, NASCAR fans that
are satellite radio subscribers will be able to enjoy the best of both Sirius and XM without having
to purchase two radios or pay for two separate subscriptions. In conclusion, we think that the
proposed merger will benefit NASCAR fans and the NASCAR industry by increasing the satellite
radio-listening audience ofNASCAR-related programming, and we support it. Paul Brooks President
NASCAR Digital Entertainment, LLC P.O. Box 2875 Daytona Beach, FL 32120-2875 1801 West
International Speedway Boulevard. Daytona Beach, FL 32114 (386) 947-6732 Fax: (386) 947-6712
www.nascar.com |
({ongrt~5 of tf]t Itntttb ~tatt5 maf)1jinoton, J)(It 20515 n~#E1 J .., October 25, 2007
FILED/ACCEPTED The Hon. Kevin Martin 0 NOV < 2007 1 Chainnan Federal Communications
Commission Federal Communications Commission 445 12th Street, SW Office of the Secretary
Washington, DC 20554 Dear Chainnan Martin: Weare writing to express our ardent support for the
consolidated transfer applications of XM Satellite Radio Holdings Inc. (XM) and Sirius Satellite
Radio Inc. (''Sirius). As you know, consumers have a plethora of choices for their music and
audio entertainment needs the Apple I-Pod, their personal music collections, HD Radio, internet
music services like Rhapsody and Yahoo music, music and audio content through their cable or
satellite TV subscriptions, content streaming through cellular phone technology, and terrestrial
and satellite radio. Over the last ten years, we have witnessed an overwhelming consolidation of
the radio industry, which, we believe, has led to decreased diversity in programming. Satellite
radio has already created the model for incorporating new artists, old favorites, and the current
top forty in the same play list. Synergies created by the merger of Sirius and XM will create new
opportunities for this type of diverse programming that has been overlooked by terrestrial-radio
broadcasters. This merger will allow the companies to offer more diverse content by consolidating
programming and better utilizing capacity to offer even more unique and diverse programming to
currently underserved populations. We firmly believe that allowing these satellite-radio companies
to merge in order to be able to better meet the content needs of this market on a national basis,
with exceptional digital sound quality and no commercials, at relatively low costs to the consumer,
is in the public interest. Satellite radio is a relatively new service, the cost of which to
provide the service is expensive, due to satellite launches, maintenance and service. Currently,
the satellite-radio service is only 4% of the radio market, with 96% of the market being commanded
by terrestrial-radio broadcasters. If these satellite-radio companies are allowed to merge, it will
allow the companies to achieve better economies of scale and scope, while enabling this new
industry alternative to terrestrial-radio broadcasting, to provide innovative and diverse content,
jobs and business partnering opportunities. |
The Honorable Kevin Martin October 25, 2007 Page 2 For these reasons, we urge you to support the
merger. Member of Congress Member of Congress ~ ..-Member of Congress Member of Congress , r7 G
b=vJ ~. . ~/<7L~_V_ Member of Congress Member of Congress cc: Commissioner Michael J.
Copps Commissioner Jonathan S. Adelstein Commissioner Deborah Taylor Tate Commissioner Robert M.
McDowell |
PETE SESSIONS fil-.1514 LONGWORTH HOUSE OFFICE BUILDING WASHINGTON, DC 20515-4332 32NO DISTRICT,
TEXAS TELEPHONE: 202.225.2231 ~ FAX: 202.225.5878 COMMITIEE ON RULES DISTRICT OFFICE: COMMITTEE o
PARK CENTRAL VII 12750 MERIT DRIVE ON THE BUDGET SUITE 1434 DALlAS, TEXAS 75251 COMMITIEE ON
etongre~~ of tbe l1nfteb ~tate5 TELEPHONE: 972.392.0505 FINANCIAL SERVICES FAX, 972.392.0615 (ON
LEAVE) 1!,)ou~e of l\epft~entatfbe5 RESULTS CAUCUS CHAIRMAN FILED!ACCEPTED September 27, 2009 t -
I{~ A.. , ''1-/;1.., HOV /2007 Kevin Martin, Chairman Federal Communications Commission
Federal Communications Commission Office of the Secretary 445 12th Street, S.W. Washington, DC
20554 Re:Applkation (or Authority to Transfer Control ofXM Radio IDe. and~nus Satellite Radio
Inc., MB Docket No. 07-57 Dear Chainnan Martin: 4 Recently, Sirius and XM announced detailed
plans for a variety of new progrannning packages that the combined company will offer to consumers
once its pendiIig merger is approved by the FCC and the Department of Justice. Among these new
offerings are two packages that, for the first time in subscription entertainment, will enable
consumers to pick programming on an a la carte basis. In addition to the two a la carte packages,
the new offerings will include several packages geared toward consumers with specific progrannning
interests. For example, a combined SiriuslXM plans to offer a Mostly Music package, a ''News,
Sports & Talk package, and two ''Family Friendly packages that exclude adult-themed content. In
addition, some of the new offerings will include best of progrannning from both Sirius and XM,
giving consumers the opportunity to receive the most appealing channels from both providers without
having to subscribe to, and pay separately for, two services. This unprecedented array of
offerings greatly will expand consumer choice and will give satellite radio subscribers the chance
to achieve substantial savings. Indeed, one of the new a la carte packages will be offered at $6.99
per month-a savings of 46 percent over the existing standard monthly price of $12.95. Importantly,
these new options also will mean that conswrers will not have to receive or pay for content that
they do not want. Perhaps most impressively, the new a la carte offerings will pave the way for a
unique form of competition in the entertainment industryone based on the individual programming
preferences of listeners. As the companies have made clear, however, these innovative offerings
will be possible only if the merger is approved. Without the efficiencies and synergies that will
be generated by the merger, these new options simply will not be feasible. ~~ 7) . j t ·v
::.,,,> c> ...·.1 .~:.:I \.) (: (~~ PRINTED ON RECYClED PAPER |
In order to bring these exciting opportunities to consumers as quickly as possible, I urge the FCC
to move forward with its review of this pending merger. (J:z:;z.,~.., Pete Sessions Member of
Congress |
Oclober 30, 2(107 TIJ~ Honombl~ TholllJ.s Uarn<:11 Assistanl Allorncy General Atllitrtlst
Division United Slales Ikp,lnmcnl of Justice 950 Conslilulion Avenue. NW Washinglon, DC 20530 TIle
Honomble K~\in J. /I.lartin Chairnl.lIl F~x1eral COlllnlunicalions C0111111 ission .14512
Stred, SW Washinglon. DC 20554 Ikar Assistanl Al1orn<,;y Geneml lhrnell and Chairnmn Marlin: As
lhe host of Demolitioll Radio: I support the pending mergcr of SIRi US and XM, My weekly program
a irs on Faclion, Clian ucl 2K. which was cr.:aled by Sllt lUS for aClion spons rans,
..Dell/olitioll Hrulio provides a forum 10 discuss sk.lling an(l lhe aClion spon s Ii feslyle. 10
play Illusic lhat ealers 10 enlhusiaSlS of lhis Iifeslyle, and 10 have conn:rsaliol1s wilh special
guesls and lisleners, Many of 5.11Cll il mdio s biggesl fans arc you ng COllsurn~rs who arc
drawn 10 lh~ cuning edge music .md mher progressivc cOntenl ofTcre(] on SIRI US :1l1() X1>1.
lundcrstan(] thaI thc mcrger wiII allow 1hc ncw com]l.1ny 10 ollr a variely of cxciling new
pmgr:ullmi ng packages, sorn~ of whic h ,ill ,:nable subscribers 10 ChOlliC sp,:cilic channels al
lower 1110nthly prices limn arc available Hxby, While lheSt., new choices wi ll lxnclit all
subscrilxrs, lhe) may be ~Spcciallr imponanl to young lisleners who arc looking for innovalive
music an(] lalk progr:unming gearc<l toward their int~resls, but who also arc on lim ile()
budgels. Wilh some packages a\ailable tor as littlc as $6.99 a mOlllh aftcr lhc m~Tgcr, somc you
ng consumers may be :Ihlc 10 ntlor(] li.1h:nite ra(]io for lhe firsllirne once lhis deal is
linalizd. Those same ine.~pensivc programm ing ]l.lekag~S will also a llow young lislcners 10
select thl s[Xcilic channels lhcy Wain, With the a la cart, Iick 50 oplion, liSlencrs e3n
choose 50 ch:lt1nds 10 receivc on their rmlios, wi tho ut having 10 shunk lhrongh -Qr pJ.y for -
llic Slalions they donl like. |
For these reasons I believe that this merger is in the public interest and I look forward to the
merger of SIRIUS and XM being approved as soon as possible. Sincerely, Tony Hawk |
ANTHONY D, WEINER 1122 HouS[ B( WiNC VV;,ShiM;T()\), DC 20515 !202\ 225-6615 COMMiTTEE ON THE
jUDICLA.RY COIAMiTTEE ON 80-02 KeN GARDENS ROAD ENERGY AND COMMERCE (lLongftss of tlit
1!tnUd~~tatts Sun£ 5000 DErdQCRAT1C WHIP mSi 11.folun~ of illtprutl.ltatiufs 520-Yl01 Z3515-)Z09
(718) 743-0441 September 12, 2007 FL:::<;;,AW;Y 11893 :enS-525:; Kevin Martin, Chairman Federal
Communications Commission 445 12th Street, S.W. Washington, DC 20554 Re: Application for Authority
to Transfer Control of XM Radio Inc. and Sirius Satellite Radio Inc., MB Docket No. 07-57 Dear
Chairman Martin: I am writing to support the pending merger of Sirius Satellite Radio Inc. and XM
Radio Inc. This merger will improve the variety and quality of audio news and entertainment
services available to consumers. Critics of the merger claim that it would be a seismic change to
the competitive balance in the telecommunications, mass media, and broadband world. The proposed
deal would not actually make much more than a ripple. Satellite companies are not competing against
each other as much as they are competing against a panoply of other ways to get music and other
audio entertainment. In addition to terrestrial radio, audio programs are delivered through
podcasts, on-demand services, cable television providers, cellular phones, RSS, and real time
streaming on the internet. The two satellite companies have not been the strongest possible
competitors in this market, as their $6 billion in accumulated losses to date demonstrate. And
while it seems like satellite radio is growing, it has a long way to go before it puts a scare into
the terrestrial radio industry, which has something on the order of 280 million listeners.
Furthermore, terrestrial radio has a huge price advantage it is free. There is no doubt that the
merger would be good for consumers of this service. A merger will allow the two companies to pool
their resources, cut costs through economies of scale, boost innovation by bringing together their
best and brightest talent, and ultimately make more programming available to subscribers. Customers
would no longer need an XM subscription for baseball games and a Sirius subscription for football
games. Car companies wouldnt have to choose between appealing to Oprah listeners or satisfying
Howard Stern fans. And finally, manufacturers could get to work on perfecting the hardware for an
industry that has been split between two different technical standards. 1Jolntc:d to the preeedent
between DIRECTV and EchoStar. That merger was denied because regulators assumed a |
2 Application for Authority to Transfer Control of XM Radio Inc. and Sirius Satellite Radio Inc.,
MB Docket No. 07-57 stronger satellite TV presence would harm competition. In fact, since the
merger was presented, satellites entry into the broadband arena a much promised development -
has ground to a halt as companies struggle to survive. For these reasons, I urge the FCC to
complete its review of this transaction and allow the companies to proceed with their merger plans.
Sincerely, ANTHONY WEINER Member of Congress cc: Commissioner Michael J. Copps Commissioner
Jonathan Adelstein Commissioner Deborah Taylor Tate Commissioner Robert M. McDowell |