Karmazin striking out with merger plans

April 18, 2007 Sirius CEO Mel Karmazin's attempt to sell policymakers on the merits of a merger between his company and its rival XM was greeted with skepticism and outright contempt Tuesday as at least one lawmaker wondered if such high-priced talent as Howard Stern and Oprah Winfrey cost the companies too much. Senators on the Commerce Committee seemed little inclined to buy Karmazin's contention that a combination of the nation's satellite radio companies would help consumers, despite his promises that the $4.6 billion deal would bring more choices for less money. Indeed, given the public interest in promoting competition and maximizing a diversity of media outlets, we should be skeptical of claims that new technologies necessarily 'change the equation' and provide competition sufficient to restrain monopoly power.

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