XM-Sirius Merge Approved!

[Dubya91]

Monday, Mar. 24 2008

Justice Department Gives Sirius-XM Merger the OK

Associated Press

WASHINGTON -- The Justice Department on Monday approved Sirius Satellite Radio Inc.'s (SIRI) proposed $5 billion buyout of rival XM Satellite Radio Holdings Inc. (XMSR), saying the deal was unlikely to hurt competition or consumers.

The deal was approved without conditions despite opposition from consumer groups and an intense lobbying campaign by the land-based radio industry.

The combination still requires approval from the Federal Communications Commission, which prohibited a merger when it granted satellite radio operating licenses in 1997.

The Justice Department, in a statement explaining its decision, said the combination of the companies won't hurt competition because the companies are not competing today. Customers must buy equipment that is exclusive to either XM or Sirius, and subscribers rarely switch providers.

"People just don't do that," said Assistant Attorney General Thomas Barnett, in a conference call with reporters.

The government also appeared to endorse the argument of the companies that they compete with other forms of audio entertainment, including "high-definition" radio, Internet-based radio stations and even devices like Apple Inc.'s (AAPL) iPod.

"The likely evolution of technology in the future, including the expected introduction in the next several years of mobile broadband Internet devices, made it even more unlikely that the transaction would harm consumers in the longer term," the Justice Department said.

The buyout received shareholder approval in November. The companies said the merger will save hundreds of millions of dollars in operating costs -- savings that will ultimately benefit their customers.

XM Satellite shares rose $1.97, or 16.5 percent, to $13.90 in afternoon trading after the government's announcement, while Sirius shares rose 28 cents, or almost 10 percent, to $3.18.

[Dubya91]

Looks like ill be getting a XMius sometime in the future, I can only imagine how much somebody  got paid off for this to happen

[Fjask]

A monopoly in satellite radio....

[WadeJ]

This is one of those few cases where I have to actually agree that a monopoly makes sense.  It just seems silly to have redundant satellites roaming around for the sole purpose of completition.  I feel the same way about SAT TV as well.  The service would only be better served to the customer if there was one system.

As a XM suscriber, I'm curious to see what, if anything will come of this.

[PcMan]

As a XM suscriber, I'm curious to see what, if anything will come of this.

Stern  ?

this is good news since I get free XM and mobi tv on my Cell phone nice

[peterpjr]

Now it just needs to be approved by the FCC

[coastermom]

As a XM suscriber, I'm curious to see what, if anything will come of this.

Stern  ?

Howard is on Sirius ... My hubby is always listening to him. I must say Sirius  makes the long drives to the park  better and the longer drives to WDW even better . No fumbling to find a local station to listen to .
this is good news since I get free XM and mobi tv on my Cell phone nice

[Dubya91]

Sirius is being bought by XM which MAY make Sirius Radios obsolete...

I hope that two things dont happen:

O&A walk because of management
Prices per month skyrocket for the service
XM Lucy is saved

[coastermom]

I thought it was the other way around ?? I thought Sirius was buying out XM. Either way it means changes for all the people who have the services

[Dubya91]

Yeah, the FCC should approve it, im waiting now to see how this pans out before i buy an XM