Sirius: Will Programming Train Wreck Hurt Merger?

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

XM Satellite Radio (XMSR) favorites Opie and Anthony made some sexual remarks about Queen Elizabeth and Condoleezza Rice. The show hosts made an obligatory apology and XM said it was embarrassed and ashamed. The duo went be back on the air as scheduled, but yesterday the hosts were suspended for 30 days Sirius (SIRI) has its own version of shock radio in Howard Stern.

All of this may be a problem as the two satellite radio operators try to merge. Congress and the FCC are looking hard at the deal. Their biggest problem so far is that they think the combination could form a monopoly. Not good for the consumers and all. The fact that the two companies are close to financial failure doesn’t seem to matter.

But, the Don Imus incident has raised the profile of racist and sexist remarks to a new level. Imus was booted from CBS and MSNBC. Of course, the FCC regulates over-the-air radio program content. Its does not have the same power over satellite radio.

But, the FCC may want a bit at the apple. Pushing for less raunchy content could be part of that. And, what congressman wants to say he approved of a merger that involves a company which has show hosts making sexual comments about the Queen of England.

Opie and Anthony did not do their employers any favors. But, without over-the-top content, satellite radio would probably see a drop in subscriptions.

Classic lose lose.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618