Sirius, XM shareholders give green light to merger

This post was updated at 2 p.m. PST on November 13 to reflect XM's shareholder vote.

Shareholders of both Sirius Satellite Radio and XM Satellite Radio separately approved Sirius' $5 billion acquisition of XM on Tuesday.

Now the companies just need approval from the Department of Justice and the Federal Communications Commission before they can make the deal final.

But approval from these agencies is far from guaranteed. The FCC has been examining the deal very closely. Originally, the agency barred satellite radio companies from combining. But the rule could be changed, especially as satellite radio faces more competition from Internet music services, music playing phones and online music stores like Apple's iTunes that allow people to play music on iPods.

Sirius and XM argue that together they could offer consumers more choices and pricing options. The companies each offer packages that include music, talk, sports, and other programming for about $13 per month. If the deal is approved, the companies say they can offer plans starting at around $7 per month.

Some analysts expect the FCC to make a decision on the deal in early December.

[jayhawk73]

Dear FCC,

As a consumer and XM subscriber for 4 years, PLEASE APPROVE THIS MERGER. I want the best of both worlds and this merger will be just that. Far more program options at a substantially lower price.

Sincerely,

XM and Sirius Subscribers

[i_am_still_wade]

Agreed

I agree. XM has things I want, Sirius has things I want. And if they go higher than $12.95, I go to my iPod and never look back. They don't have a monopoly, because they compete with free radio, CD's, and iPods.

[doublethought84]

$7 for basic, $30 for what I have now...

I hope this doesn't happen. I chose Sirius over XM because of what it offered. It had everything I wanted for $12. When the merger happens, sure they'll have tons more programming, but I'm sure these $7 pricing plans will mean a much higher rate to get the all-inclusive plan I have now. They'll probably rip it apart... with separate prices for music, talk, entertainment, sports.. who knows.

Also, I'm afraid I'll lose some of the programming I love because, well that's what happens with mergers. XM probably has "comparable" programing which will replace Sirius shows and vice versa.

If anyone has seen any literature to prove that these things will not happen, please share.

I think I'd rather pay $5 more a month.. If I was really that strapped for cash, then that's only one less visit to Starbucks.