Bob W.

fire sale on XM units! (knocking on wood here, FCC can still muck it up)

Justice Dept. approves XM-Sirius merger

By JOHN DUNBAR

WASHINGTON

The Justice Department on Monday approved Sirius Satellite Radio Inc.'s proposed $5 billion buyout of rival XM Satellite Radio Holdings Inc., saying the deal was unlikely to hurt competition or consumers.

The deal was approved without conditions despite opposition from consumer groups and an intense lobbying campaign by the land-based radio industry.

The combination still requires approval from the Federal Communications Commission, which prohibited a merger when it granted satellite radio operating licenses in 1997.

The Justice Department, in a statement explaining its decision, said the combination of the companies won't hurt competition because the companies are not competing today. Customers must buy equipment that is exclusive to either XM or Sirius, and subscribers rarely switch providers.

"People just don't do that," said Assistant Attorney General Thomas Barnett, in a conference call with reporters.

The government also appeared to endorse the argument of the companies that they compete with other forms of audio entertainment, including "high-definition" radio, Internet-based radio stations and even devices like Apple Inc.'s iPod.

"The likely evolution of technology in the future, including the expected introduction in the next several years of mobile broadband Internet devices, made it even more unlikely that the transaction would harm consumers in the longer term," the Justice Department said.

The buyout received shareholder approval in November. The companies said the merger will save hundreds of millions of dollars in operating costs -- savings that will ultimately benefit their customers.

XM Satellite shares rose $1.97, or 16.5 percent, to $13.90 in afternoon trading after the government's announcement, while Sirius shares rose 28 cents, or almost 10 percent, to $3.18.

sparkhill

The posts last week, last month, last year.

Bob W.

...then finally someone with a little visibility (Jim Cramer) goes on the record to shed some light on the hypocrisy of the situation, and a month later it's approved. It's almost as if the JD and the FCC were hoping this multi-billion dollar transaction was some sort of fad that would just go away.

sparkhill

Somebody mailed in asking if they should sell their Bear Sterns shares. Cramer yelled "No, no, no!" A couple of days later the collapse, bail-out, and purchase were announced. Regardless of who it is, it is entertaining to see the experts look silly.

Bob W.

ironically, BSC is up something like 300% from that low point, so people should have waited!

Miwa

The guy that called in on Tuesday was asking if he needed to pull his accounts from BSC.

Jim correctly told him that he didn't need to, because deposits are federally guaranteed. The caller wasn't asking about BS stock.

Then on Friday, before the weekend of doom, someone did call and ask about BS stock, and Jim said not to touch it with a 10' pole.

Then last week, he sat down on the floor and re-explained it for the really slow folks what he said and when.

Of course, folks looking for a sound bite, just edit "Bear Stearns" and "don't sell" together to get eyeballs.

Jim does admit mistakes (like the huge one he made recently with a different investment company), but the BS calls weren't one of them.<ul><li><a href="http://www.cnbc.com/id/23678693/site/14081545/">Actual description of events</a></li></ul>

sparkhill

I stand corrected. The inaccurate sound bite was still funny.