FCC chief expected to back Sirius-XM merger
The chairman of the Federal Communications Commission is expected to support the $5 billion merger of Sirius Satellite Radio and XM Satellite Radio, according to published reports.
FCC Chairman Kevin Martin's approval comes in exchange for concessions that include a three-year freeze on subscription prices and the turning over of 24 channels to noncommercial and minority programming, the Associated Press reported. Martin is expected to issue his recommendation as early as this week that the FCC should approve the merger.
"As I have indicated before, this is an unusual situation," Martin said in a statement. "I am recommending that with the voluntary commitments (Sirius and XM) have offered, on balance, this transaction would be in the public interest."
However, merger approval hinges on the approval of at least two of the four remaining commissioners, who have largely kept their opinions on the matter private.
The FCC is the final regulatory hurdle the companies need to move the merger forward. The deal, which was valued at $13 billion in February 2007 when it was announced, was approved by XM and Sirius shareholders last December.
Martin had indicated at the end of March that the agency was inching closer to a decision on whether the deal passes muster.
While the proposed merger sailed through a U.S. Department of Justice review without conditions, key congressional Democrats had urged the FCC to impose limits designed to protect consumers.
Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers. E-mail Steven. 
The minority thing is just ridiculous. Do they REQUIRE every merger to provide 1/4 of their services FREE to minorities? Oil/gas affects everyone, merger went through without a hitch. Sat rad affects practically nobody and its still awaiting approval.
The artical goes on to carry quotes from Karmazin that new features and some exsting funtions will require new hardware to be purchased by users.
$16.99 a month? That would be a increase of over $7.00 for XM subscribers.
New hardware purchases? Tired radio service that will nearly double the price of existing service? Karmazin has gone on record in the Washington Post, the USA Today and now Wired as promising these things.
- by benjaminstraight August 3, 2008 2:22 PM PDT
- Wouldn't this be a monopoly because they are the only two satellite radio providers?
- Like this Reply to this comment
-
(11 Comments)