Sirius CEO Karmazin to FCC: I'll Sue!
Sirius Satellite Radio CEO Threatens to Sue FCC if Merger with XM Satellite Radio Is Blocked
By John Eggerton -- Broadcasting & Cable, 11/10/2007 5:15:00 AM
In an interview with the Chicago Tribune, Sirius Satellite Radio CEO Mel Karmazin said he will sue the Federal Communications Commission if it does not approve the merger of his company with XM Satellite Radio.
Karmazin has been pushing the merger for months, saying that it is a "no-brainer" that it will result in lower prices and more choice -- the companies have even offered an a la carte model to sweeten the deal because they would be more efficient together.
He also said it would not create a monopoly of the satellite market but instead a stronger competitor in a crowded field of audio delivery.
The FCC is in day 154 of its informal 180-day shot clock for reviewing mergers.The Justice Department must also clear the deal on antitrust grounds.
In the interview, Karmazin also said he thought Howard Stern's radio show was better before he moved to Sirius, because he doesn't have the FCC to kick around anymore, adding: "It used to be better radio when he was bitching, right?"
