By Relmor Demitrius
On July 27th, 2011, the FCC issued a memorandum on the comment period regarding whether to allow the 3 year voluntary price freeze from Sirius XM Radio (NASDAQ:SIRI) to be lifted. They stated they would not be extending the price freeze and Sirius XM is now allowed to raise prices as they see fit. When Sirius and XM Radio approached the FCC about merging the two companies, they offered to freeze prices voluntarily for three years. FCC put this condition in as a mandate to allow the companies to merge. Now that the comment period on this ruling expiring has ended, the FCC has issued their official decision on the matter.
Here is some of the exact language from this document.
Of course this comes as absolutely no surprise. There is no legal authority for the FCC to require this or enforce an extension of a voluntary price freeze. I am reminded of the Shakespeare play, “Much Ado about Nothing” in this case. There is a lot of documentation and comments that are all irrelevant. So nice of the WCS Coalition (collection of cell phone company interests) to comment, as well as the plaintiffs from the Blessing Anti-Trust case, who tried to get documents read in regards to this decision. All were told to get lost and nice try basically.
Good that this issue has been put to bed and the company can now focus on other matters.
With Monday’s expiration of the poison pill and the reverse split now a distant memory as a threat, the company is slowly putting issue after issue to rest. After August 1st, there also begins the first day of a possible takeover offer from a third party, as the 3 year merger freeze on NOL’s reset ends. Not ironically, the same time the poison pill expires as well. Things could start happening now fast and furious for this company. With the release of 2.0 coming in Q3, price increase starting in probably January, and offers now able to be made for the company, it should be an exciting time to be a shareholder.
Disclosure: Long SIRI
For investor comments like yourself on all stocks and trades, as well as expert opinions, visit www.kingofalltrades.com/community.
Rel, did Mel say they plan on raising prices in Jan or just that they won’t raise prices until Jan?
They stated they would NOT raise prices until Jan. I am speculating they will around then. Mel has hinted its coming for a long time now.
Nice article Relmor. I will try to spread the word and twitter it if you promise me to investigate the Reg Show listing and the historical data on how Siri climb back up to 292 million shares as of June 15th, 2011 listing. Reduce this number by exposing it will increase the siri stock price, just like in 2009 into early 2010 after Stock Shock was made it decreased from 230 million down into around the 58 million mark.
Richard
http://www.SiriusNews.com
Thanks Richard, sounds good man.