The FCC began the public comment period on whether D.C.-based XM Satellite should be allowed to merge with New York-based Sirius Radio on June 11. XM has since unveiled a series of marketing measures to promote the union.
The company published ads in Roll Call, the Politico, The Hill and Communications Daily highlighting groups that have voiced support for the merger. Among the groups cited were the League of Rural Voters, the National Black Chamber of Commerce and the League of United Latin American Citizens.
On Thursday, XM released a study it commissioned by Arlington-based economist Thomas Hazlett, a former chief economist of the FCC, which argues the merger would enhance competition.
Not to be outdone, the D.C.-based lobbying organization National Association of Broadcasters, which opposes the merger, has been visiting Congress and unleashing advertisements of its own, spokesman Dennis Wharton said. The group launched XMSiriusMonopoly.com, a Web site with anti-merger editorials, fact sheets and copies of its own print ads opposing the merger. The group has hung a large banner on its Connecticut Avenue headquarters promoting the site.
XM spokesman Chance Patterson said NAB’s marketing efforts forced his company to be aggressive, and it will continue to run similar ads as a potential vote draws closer.
“The NAB is a well-funded, deep-pocketed, huge outfit,” Patterson said. “They’re in the business of lobbying, and we are a satellite radio company. ... We’re compelled to be proactive and make sure the facts aren’t being misrepresented.”
The FCC has 180 days from the beginning of the comment period to make a decision on the merger.
Analyst Jonathan Jacoby, of New York-based Banc of America securities, said he does not believe the merger will be approved.
In a note to investors June 10, Jacoby said he believes the FCC waited so long to “start the clock” on the merger decision after XM and Sirius announced their intent, because it thought the companies might withdraw the application.
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