Justice Dept Approves XM-Sirius Satellite Radio Deal

[The Rover]

Justice Dept Approves XM-Sirius Deal

Mar 24 03:20 PM US/Eastern

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

The deal was approved despite opposition from consumer groups and an intense lobbying campaign by the land-based radio industry.

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.

The Justice Department, in a lengthy news release explaining its decision, said the two companies compete not just with each other but also with other forms of radio and entertainment.

"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. "Accordingly, the division has closed its investigation of the proposed merger."

[Stargroves Tangie]

Well, finally! I kept wondering what had happened to the merger because last year on the XM website they were talking about the different channel packages you could get when the two merged, and then- nothing! Hopefully what they were saying about the pricing (your current channel package costing less than it does now) is still the same, although there are some Sirius channels I would like to get. And they better not want to charge a ridiculous price just for XM Led!!!!

[kirchzep27]

I was suprised by this. isnt competition supposed to bring prices down?? another case of money preventing fair play and competition imo.

[Pb Derigable]

The idea of satellite radio is great, but both of these companies have made terrible business deals. Sirius just go lucky. The 500 million Howard stern deal is ridiculous. He may of bought in the customers, (not as much as he claims), but now when you negotiate a deal with a star there asking alot becasue of the Howard. Rosie O'Donnell got 50million a year just to do a 2 hr weekly show. I love satellite radio, but my ipod takes over music duties, I like sports talk radio, but i usually like my local guys better, or they are usually simulcast on both. I only listened to Howard stern, but he's on vacation twice a month and his shows gets stale once every month to.

This may bring lower prices, but i have a feeling ADS will start popping up more and more, and they will sort out the diffent packages so you just can't have one.

But the biggest bullshit is, since there listenership is not based on ads sales, they are allowed to play anything they want, but they still cut songs in half just like regular radio does. They played the TSRTS version of STH a year ago, and they took out the whole fucking solo!

[The Rover]

From Reuters:

AWAITING FCC DECISION

The antitrust decision shifts the spotlight to the FCC, which must determine whether the XM-Sirius is in the public interest, and whether to enforce its 1997 order barring either satellite radio company from acquiring the other.

A source at the FCC said Chairman Kevin Martin has yet to make a proposal either approving or opposing the XM-Sirius combination, but has asked the agency's staff to draft documents for different possible outcomes.

This source said the FCC could be strongly influenced by the Justice Department decision. "I think it would be hard to go in the complete opposite direction," said the source.

Analysts at Stifel Nicolaus said the FCC could impose conditions, such as requiring the companies to adhere to promises Karmazin made to Congress last year.

Karmazin promised lawmakers that a combined company would offer packages of channels that customers could pick on an "a la carte" basis, and that customers would be able to block adult channels and get a refund for those channels.

In addition, Stifel Nicolaus said, the FCC also may require Sirius and XM to promise that all existing satellite radios will continue to work after the companies are combined.

David Bank, an analyst with RBC Capital Markets, was optimistic about FCC approval. "Now it's past DOJ, and we feel pretty optimistic it will get through the FCC," he said.

The Justice Department's decision provoked immediate criticism from a key lawmaker in Congress, Senate antitrust subcommittee chairman Sen. Herb Kohl, a Wisconsin Democrat.

Kohl took the department to task for "failing to oppose numerous mergers which reduced competition in key industries, resulting in the Justice Department not bringing a single contested merger case in nearly four years."

"We urge that the FCC find the merger contrary to the public interest and exercise its authority to block it," Kohl said in a statement.

Sirius and XM said in a brief statement that they had received antitrust clearance and that their deal was still subject to FCC approval.

[zepyep]

Hi all,

Is the same thing when the FCC broke uo AT&T? Better choices,better service,better price?

"We urge that the FCC find the merger contrary to the public interest and exercise its authority to block it," Kohl said in a statement.

Until we find a way to profit from it,.....egad!

Then the layoff's and the other BS,...please,...

HTF,is Bear Sterns doing???

KB

[Pb Derigable]

When they FCC approved satellite radio, they wouldn't give out the licenses until two companies wanted it. I'm not sure if they would use one freq. or both, but if there is only one company, i think they should forfeit the other freq. it would be like if NBC bought ever body out and only show NBC crap. The reason ground radio sucks, is because only three companies own 90% of the stations out there.