Research firm argues against Sirius-XM deal
NEW YORK (Reuters) – Influential research firm Carmel Group argued against a planned merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. in a new report sponsored by the National Association of Broadcasters.
The National Association of Broadcasters represents local broadcast radio stations that oppose the combination of the two satellite radio companies with which they compete.
The Carmel Group is credited for having lent arguments to regulators’ rejection of a 2002 merger plan between satellite television providers EchoStar Communications Corp. and DirecTV Group Inc.
The new report, issued on Tuesday, concluded that the Sirius-XM deal would result in “less service, less affordability, less diversity and less choice in content and hardware.”
In morning Nasdaq trade, Sirius shares were down 4 cents at $3.11, while XM fell 19 cents to $12.20.
The report also included a “ping pong” chart of retail promotions and other moves that Sirius and XM took to compete with each other, to support the argument that their competition forced improvements in service, choice and pricing.
Sirius Chief Executive Mel Karmazin has promised lawmakers reviewing the deal that the combined company would not raise prices. The deal requires approval from the U.S. Justice Department’s antitrust office as well as the Federal Communications Commission.
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