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Audio/Video, Car Tech

Liberty Media Rescues Sirius XM from Bankruptcy


We guess those bailout talks with DirecTV weren't so futile after all, huh? The satcaster's parent company, Liberty Media, has just stepped in to rescue Sirius XM from the clutches of bankruptcy, providing a $530 million life raft that it will use to pay off looming debt payments and keep operations humming. Liberty will write a $280 million check immediately, of which $171 million will go straight to debtors. Another round of funding (to the tune of $250 million) will be available to Sirius XM in order to "help it pay its debts and ward off a potential takeover of Sirius by Charlie Ergen's DISH Network."

In return for this mighty appreciated favor, Liberty Media will own 12.5 million shares of preferred stock in Sirius XM, which it can convert into common stock should it so choose. Also of note, founder John Malone and Liberty Media CEO Greg Maffei are likely to join Sirius XM's board of directors. Is that a collective sign of relief we just heard, or what? [Via Denver Business Journal, thanks Michael]

Audio/Video, Home Audio, Portable Audio

Report: Sirius XM Preparing to File for Bankruptcy

Sirius XM is preparing to file for bankruptcy and could do so within days, the New York Times reports. According to the article, the move might be a calculated act to pressure Dish Network and EchoStar owner Charles Ergen into making an offer for acquisition. The Wall Street Journal says he offered to purchase the merged satellite radio group late last year and was then brushed off. Despite previous rejections, he's recently reaffirmed his desire try again. If it wasn't before, the honeymoon is now officially over.

Read - New York Times
Read - Wall Street Journal

Audio/Video, Car Tech

Canceled XM and Sirius Channels Rankling Merged Sat Radio Subscribers

The Sirius Satellite Radio and XM merger is rankling more than a few of the service's subscribers now that many of their favorite stations have been eliminated in new channel line ups.

As with most mergers, the two companies are, at best, trying to remove redundancy, putting a positive spin on their new combined effort. In actual practice, that means switching some channels from one service to the other or eliminating programming. This has left some passionate satellite radio subscribers miffed.

Some, like long-time Sirius subscriber Stan Petrov, lament the loss of his NBA channels, which were moved over to XM. But why, you ask, do any channels have to be moved? Aren't the combined channel selections available to all XM and Sirius subscribers? The answer is no. Until now, XM subscribers had to use an XM receiver. Sirius subscribers had to use a Sirius receiver. The two receivers cannot make use of the satellite signal previously assigned to its former competitor. It won't be until next May that combined Sirius/XM receiver will likely be on the market.

Will the new XM/Sirius survive until then?

Read more →

Audio/Video, Car Tech

FCC Approves Sirius and XM Satellite Radio Merger

In a somewhat unsurprising move, the FCC has approved the merger of Sirius and XM after protracted -- and incredibly boring -- multi-year negotiations. The Federal Communication Commission decided tonight to allow a deal that will bring the two satellite radio providers together, creating a combined subscriber base of roughly 18 million users.

The deal isn't without catches, however, with the Commission stating that the companies must cap prices for three years following the merger, allow subscriber choice on content, and lower fees for channel packages. FCC head Kevin Martin seemed pleased with the final outcome, stating, "Consumers will get to enjoy the best of the programming on both services." You know who wasn't so stoked? Clear Channel. [Source: Washington Post]

Audio/Video, Car Tech

Clear Channel Pushing For Restrictions In Sirius / XM Merger

Clear Channel Pushing for Restrictions in Sirius / XM Merger
The Department of Justice approved the controversial merger between Sirius and XM Satellite radio yesterday. Now it's the FCC's turn to take a shot at the only two satellite radio providers in the country, which aim to become one monopolistic company.

Clear Channel is taking the unprecedented step of pressuring the FCC for stricter enforcement of decency standards, specifically making them applicable to satellite broadcasts. Currently satellite radio is not subject to the same standards that govern terrestrial radio broadcasts and television. In 2004 Clear Channel, the largest conglomerate of radio stations in the U.S., was slapped with well over half a million dollars in fines for indecent and started pressuring shock jock Howard Stern to clean up his act. Stern found a new audience Sirius, and now it seems that Clear Channel is looking to extract revenge on the satellite radio industry for stealing away one of its prime properties.

Among the qualifiers Clear Channel is seeking for the merger are the enforcement of decency standards for satellite broadcasts, opening up part of the satellite radio spectrum for a possible commercial competitor, five percent of the spectrum being set aside for public interest uses, and that the new unified Sirius / XM Satellite Radio be forced to integrate HD radio technology into its receivers, which Clear Channel is an investor in.

We find it quite interesting that Clear Channel is perfectly willing to support decency standards and public interest reforms... at least for its competitors.

From Ars Technica and AOL News

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Audio/Video, Car Tech

Justice Department Approves XM / Sirius Merger

Following a year of review, the U.S. Department of Justice just announced that it will allow the merger of XM and Sirius, the two leading U.S. satellite radio providers. Interestingly, the Department of Justice does not see the merger as anti-competitive. Engadget explains:

The deciding factor appeared to be the proprietary hardware needed to receive both XM and Sirius; since consumers who shell out aren't likely to switch, the DOJ doesn't think the marketplace is all that competitive to begin with, which makes the impact of a merger relatively small. In fact, the DOJ says the merger could actually benefit consumers, who might see lower prices as the result of more efficient operations, broader programming options, and faster rollouts of new technology.

Although the Justice Department's decision is important, the merger won't happen without the approval of the Federal Communications Commission (FCC) -- the next stage in the process.

From Engadget and CNN


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Audio/Video, Car Tech

XM's First Radio With Color Screen

XM's First Radio With Color Screen
This week, XM announced its first ever radio with a color screen, the XpressRC. The unit, to be manufactured by Delphi, features a split-screen with one half showing the song that is currently playing and the other half showing what's playing on up to three other channels.

In addition, the receiver allows you to pause for up to an hour and pick back up where you left off, which doubles the pause time of previous units. The XpressRC also lets you record up to 10 favorite songs for later listening.

Perhaps the most important new feature, though, is the new FrequencyFinder option, which automatically finds the best empty FM frequency for playing XM over your car stereo speakers. This nice addition follows last year's FCC investigation into XM, which found that some XM units were not compliant with signal strength laws and that the FM transmitters on them operated outside of transmission limits. Hopefully, it actually works. We've tested our fair share of FM transmitters for satellite radio, MP3 players and iPod peripherals and have yet to be satisfied with a single one.

The XpressRC will be available in October for $170.

From BetaNews

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Audio/Video

High-Def Radio = Low-Def Audio?


Say it ain't so, FCC. Apparently the latest HD radios, which claim to offer "the kind of sound that was previously reserved for your HDTV, CD system or MP3 player", actually do a worse job of performing the simple task of picking up radio signals than even a cheap shower radio. It seems that when they do pick up a station the sound is good, but they have such crummy tuners that for the time being you're far better off just sticking with your current analog AM/FM soundbox. It shouldn't be too long until higher quality HD offerings come along, but by that time all the fuss surrounding the Sirius and XM merger may very well have settled down, leaving satellite radio with its five years of public availability as the more tried and tested option.

From Engadget (via MP3 newswire)

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