Justice Dept. Approves XM Merger with Sirius

By Philip Shenon
New York Times

The Justice Department gave approval on Monday to the merger of two rival radio networks, XM and Sirius, a marriage that would create a de facto monopoly in satellite services now used by more than 17 million subscribers.

Skip to next paragraph

The proposed $5 billion merger, which was announced more than a year ago, must still be approved by the Federal Communications Commission. The merger is opposed by consumer groups and broadcasters who say it will force up prices and reduce the programming now available from the two competing systems.

The Justice Department’s antitrust division announced Monday that it approved the merger after determining that prices were not likely to rise, in part because of competition from other program sources, like high-definition radio as well as iPods and other MP3 players that can be connected to home or car audio systems. The deal, the agency said, was unlikely to hurt competition or consumers.

To read the article, click here [1].


Source URL:
http://www.freepress.net/node/37829

Publisher URL:
http://www.nytimes.com/2008/03/25/business/25radio.html?ref=business