Why is John Ashcroft leaning on Gonzales to reject the Sirius/XM merger?

[LTR]

Former U.S. Attorney General John Ashcroft has contacted his successor in that job to express concerns about the proposed merger between XM Satellite Radio and Sirius Satellite Radio.

In a February 27 letter to current Attorney General Alberto Gonzales, Ashcroft, who now runs his own DC-based consulting firm, offers the opinion that terrestrial radio should not be considered part of the satellite radio market because “they are not providing content available to consumers traveling market to market.” Ashcroft feels that if XM and Sirius merge, no other entity can provide unique mobile multi-channel content "with a nationwide reach."

The ex-AG states, “In granting licensing authority for the existence of XM and Sirius, the FCC explicitly prohibited the two licensees from combining into a monopoly.”

http://www.radioink.com/HeadlineEntry.asp?hid=137057&pt=todaysnews

This move is rather unprecedented for a former AG. So, how much do you think the radio industry's lobbyists are paying Ashcroft anyway?

[donsu]

1. so that's why ash held the pizza party

knew it was to sell or buy or bully for something.

[madrchsod]

2. paying him a lot

it`s always cheaper to pay a lot of money to protect a failing business model that to adapt to the changing market. just ask the music industry about their changing market..

[Ignacio Upton]

3. In this case, I actually agree with him

Even a really broken clock is right twice a day.

[youngdem]

4. FM is paying him to lobby probably....or XM snubbed his request for a bribe

Either way, that is the ONLY reason an ex-pol gets involved in such matters...pure self interest.

[talkinghead]

5. I hope this merger goes through

I see some serious economies of scale being achieved with this merger.

[KharmaTrain]

6. Signed, Sealed & Delivered By The NAB

Insiders tell me that Eddie Fritz and the National Association of Broadcasters hired Asshat to stop this merger. They're the most vocal opponenets and represent companies like Clear Channel, Salem, Citadel/Disney, CBS and all the biggies...all who want to see XM and Sirius continue to go into economic oblivion (as well as getting even with Mel Karmazin & Howard Stern).

[NashVegas]

7. GOOD!

Have some DUers forgotten what happened 3-4 years ago when Dish and DirecTV wanted to merge in order to keep Rupert Murdoch's grubby hands off of DirecTV?

Washington said 'no' and insisted satellite cable providers compete. Murdoch got his way and DirecTV was forced to sell to him..

If this merger goes through, there's nothing to stop Murdoch from taking over Dish.