Devoted to show business and the entertainment industry

In a letter from former Attorney General John Ashcroft to his successor Attorney General Alberto Gonzales, he stated that in his opinion, terrestrial radio (regular radio) shouldn't be considered a direct competitor to satellite radio providers XM Satellite (XMSR) and Sirius (SIRI).

Ashcroft stated in the letter that "a thorough study of consumer demands and preferences would show that terrestrial radio stations should not be considered part of the satellite radio market for the purposes of the review of the current merger because they are not providing substitute content..... Consumers, I believe, subscribe to satellite radio not because it comes from satellites rather than radio towers but because it is a unique mobile multichannel product with nationwide reach."

From XMs and Sirius' way of looking at it, the merger would be in the best interests of the consumer and would increase choices while lowering prices.

This argument by the two satellite providers will probably be the deciding factor in whether they will be allowed to merge or not. It's obvious that they're the only two satellite providers in the U.S., the question is if they are really being competed with by terrestrial radio, which is pretty much limited to local fare. It's a stretch of the imagination to make it look like they are in competition with them.

Even if this were to be allowed to go through, it still has to deal with the horrible management practices of both companies as they foolishly signed outrageous contracts that are dragging both the companies down. The growth rates won't be able to keep up with the costs associated with the signings.

I think they shouldn't be allowed to merge, they should instead start to think like businesses and start being run that way. What's really happening is the poor practices are being brought to light by the continual losses the companies keep racking up. A merger would take the focus off of that and put it onto other things for the short-term; the obvious reason that the merger is being considered in the first place.

It's the same old stalling-for-time tactic they're attempting to use to try to figure out how to fix their huge hole they've dug for themselves.

Notice the time this was all brought up when quarterly results were being revealed. You don't hear much about that, but you do hear about the merger; an obvious strategy by both the companies no matter what is eventually worked out. Eventually they'll have to pay the piper, and the merger won't fix the many problems that both companies face.