Posted on Monday 24 March 2008
The U.S. Department of Justice (DOJ) approved the merger of satellite radio providers Sirius and XM. The merger has been in the works since last February, and now that the government’s antitrust division has given the all-clear, the final hurdle is the FCC.
Initial rumors about the deal popped up in mid-2006, with both companies’ CEOs admitting it would be necessary to combat the growing competition from conventional radio, online radio and downloaded music. End-users should see the benefit in terms of more channels and possibly lower prices, as the merger will reduce operating costs as XM and Sirius combine.
The DOJ’s approval is required before nearly any major merger can be completed. An in-depth examination of the satellite radio industry led the DOJ to conclude that the merger would not, on the whole, be anti-competitive, reports CNN. With DOJ approval out of the way, the two companies must gain the blessing of the FCC before the deal can be completed.
FCC approval is expected by the end of March. According to Bloomberg, in a press conference on the 20th of this month, FCC Chairman Kevin Martin backed away from earlier comments that the merger decision would be announced by the end of the first quarter. “I’m not sure we’ll make it by the end of the first quarter any longer. I’ve got the staff drafting various options. I haven’t figured out what I think we should do on it yet.” Nevertheless, Martin said that once the DOJ had made a decision, things would “go forward quickly after that.”
Ok, cool. I have Sirius in my new car, so now I’ll get all the XM channels as well?
So now there will be no way to escape Howard Stern by choosing the competing brand? I’m interested to know which one absorved the other and for which one the aforementioned Stern works for.
stern is on sirius, and gus, i believe if you want XM programming as well, its another 4$ a month or something like that.
If you’re an XM subscriber:
You’ll continue to receive your existing XM service, and gain the ability to receive certain Sirius programming.
If you’re a Sirius subscriber:
Sirius customers would continue to receive their existing Sirius service, and be able to obtain certain XM programming.