Government Approves XM-Sirius Merger
Source: http://thestockmasters.com/SIRI-072608.htmlPosted on Saturday, July 26th, 2008 | In Current Market News, Market Commentary, Stocks to Watch
Just like that, Sirius Satellite Radio Inc.’s (NASDAQ:SIRI) $3.3 billion buyout of rival XM Satellite Radio Holdings Inc. will mean millions of subscribers will be able to receive programming from both services, while executives say it will create huge cost savings for the industry. Go Howard go!
Federal regulators formally approved the merger of the nation’s only two satellite radio operators Friday.
“I think it’s going to be, in the end, a good thing for consumers and be in the public interest,” Federal Communications Commission Chairman Kevin Martin told The Associated Press. “Consumers will enjoy a variety of programming at reduced prices and more diversified programming choices.”
Subscribers will not have to buy new radios to receive a mix of programming from both services, according to the companies. But if they want to pursue a special pay-per-channel a la carte option, they will need new sets.
The FCC voted 3-2 to approve the buyout, with the tiebreaker coming Friday night from Republican commissioner Deborah Taylor Tate.
Tate had insisted that the companies settle charges that they violated FCC rules before she would approve the deal. The companies agreed this week to pay $19.7 million to the U.S. Treasury for violations related to radio receivers and ground-based signal repeaters.
The long-running regulatory review was watched closely by exasperated investors anxious for a resolution as well as 18 million-plus satellite radio customers with questions about what impact the merger would have on their service.
The approval was a major blow for the land-based radio industry, which lobbied hard against the buyout. It was also opposed by consumer groups, various members of Congress and state attorneys general, all of whom argued a satellite radio merger would hurt consumers and was not in the public interest.
“They kept each other on their toes,” Democratic commissioner Jonathan Adelstein said of the two companies. “I hope they keep their edge and don’t become a fat and happy monopoly.”
More at the Daily Herald and every other website on the planet: Â http://www.dailyherald.com/story/?id=223625
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