Black Caucus Threatens XM-Sirius Merger Over Affirmative Action Channels
Senior members of the Congressional Black Caucus yesterday criticized a compromise plan for the proposed merger of the XM and Sirius satellite radio companies, saying the deal does not provide enough opportunities for minority-owned programming.
Federal Communications Commission Chairman Kevin J. Martin said over the weekend that he would support the merger after XM Satellite Radio Holdings and Sirius Satellite Radio voluntarily agreed, among a series of other concessions, to lease 4 percent of their radio spectrums, or 12 channels, for programming run by minorities and women.
Members of the black caucus on Capitol Hill have been arguing for the merged company to lease five times that amount of spectrum to companies owned by racial minorities. Short of that, caucus members have warned in letters to the commission and meetings with Martin, they would oppose the merger.
In an interview yesterday, Rep. G.K. Butterfield (D-N.C.), chairman of the Congressional Black Caucus’s working group on satellite radio, called Martin’s proposed compromise “completely unacceptable.”
He said he and other members of the working group planned to express their dissatisfaction today to top executives of XM, which is in the District, and Sirius.
Other prominent members of the caucus also expressed misgivings about the XM-Sirius plan. Rep. Elijah E. Cummings (D-Md.), a former chairman of the caucus, said yesterday that he was “extremely upset” about the proposed deal and that he would speak to his colleagues about taking action to stop the merger — perhaps legislative action — unless the percentage is increased.
“It’s shocking to the conscience in this day and age, where the minority populations comprise a significant part of the satellite radio audience, that Mr. Martin would settle for what I deem to be crumbs that have fallen off the table,” Cummings said. “We can do much better. I am hoping that this can be revisited.”
Spokesmen for XM, Sirius and Martin declined to comment.
The satellite radio networks were told a month ago that a sizable leasing agreement would be needed to get the backing of members of the caucus, congressional insiders said. During a meeting in the Rayburn House Office Building, Mel Karmazin, the chief executive of Sirius, was asked sharp questions by aides to black caucus members, according to staffers in attendance.
Karmazin repeated, however, that too large a set-aside would be too costly for the company and would endanger the transaction and the viability of the merged company. His refusal to get closer to the black caucus’s demand has stirred anger among lawmakers ever since, said the staffers, who spoke on condition of anonymity.
Butterfield said that black caucus members planned to meet today with Karmazin and Nate Davis, chief executive of XM. “We’re going to close the door and have a very honest and open dialogue about the merger,” Butterfield said. “If they cannot meet us on any reasonable terms, we are going to be very adamant about not approving the merger. It’s not in the public interest. They are not concerned about the cost to the consumer.”
Be respectful of others and their opinions. Inflammatory remarks and inane leftist drivel will be deleted. It ain’t about free speech, remember you’re in a private domain. My website, my prerogative.
If you can't handle using your real email address, don't bother posting a comment.
June 17th, 2008 at 8:49 pmSomething for nothing.
I say give it to them. It’ll fail like lib talk radio and they get the spectrum back.
Isn’t what the Black Caucus members are doing some form of extortion? I understand the whole equal opportunity idea is good as I believe in equality, but mandating quotas like this one a private company is, basically, communism.
Das vidanya, comrades.
June 17th, 2008 at 8:51 pmI think there should be more Mexicans and Asians in the NBA.
June 17th, 2008 at 8:58 pmIt is dominated by African-Americans. IS that good for basketball fans?
Sheeee-it!
They (libs) still don’t comprehend … It’s a BUSINESS!
June 17th, 2008 at 9:03 pmAll shall be represented by the color of skin and not by content of character?… Huh, did I miss the memo?
When did color of skin overtake achievement as a means to be tested?
Cummings is a racist and always has been. (Enter any number of racist remarks here)
How do we overcome this?
Speak to it.
The color of your skin should not preclude, nor should it exclude, nor include, comments from people of color. My color is pink, at least that’s what my grandaughter told me.
Why I have to establish my Bona Fides before commenting is the point.
Why Am I not allowed to comment even though this issue effects me and mine?
The black community is broke. When they address that in a serious manner I will engage and contribute.
June 17th, 2008 at 10:33 pmI want Whitey radio. Shit if the Blacks are entitled to a radio channel, then why not the KKK or Arian Nation?
Sharpton, Jackson, NAACP, Black Caucus….it’s all the same under a different name, all looking for a hand out, looking a free meal on somone elses dime and if they don’t get it they will boycott, cry racism or if we get lucky they will raze their own neighborhoods again like 1968.
Considering that the majority of negro children are fatherless and that the crime rate among blacks is astronomical….I think they have better causes to look after than a radio channel.
Fuck’em
June 18th, 2008 at 4:44 amNobody said they couldn’t own more than 12 channels. It’s just that they might actually have to work for the others. Not really a black creed…
June 18th, 2008 at 4:53 amAnother big give away to blacks because “we are being mistreated”. Stop the madness. I never got anything I didn’t have to work for at some of the time. This is exactly what it will be like if Obama is elected. Blacks opposing whites at every turn with extortion of some kind. Not the America we have known…
June 18th, 2008 at 5:38 am