XM Radio Merger Passes Through Department of Justice
Posted by Dustin D. on March 24, 2008 around 2pm
On March 24th, 2008, after being held up for a little over a year, the merger between Sirius Satellite Radio and XM Satellite Radio has won antitrust clearance from the Justice Department. The Justice Department argued that other media companies such as Clear Channel, CBS or even Apple with its iTunes software and iPod music player served as alternate options for music and media customers.
“After a careful and thorough review of the proposed transaction, the Division concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers,” the DoJ’s Antitrust Division said in its announcement.
Now that they are past the first hurdle, the companies are still awaiting approval by the Federal Communications Commission.
The deal was opposed by the National Association of Broadcasters, the trade group that represents free radio stations and waged a lobbying campaign in Congress and at the FCC. The broadcasters’ group argued the merger created a pay-radio monopoly.
“We are very disappointed” by the Justice Department decision, said Senator Herb Kohl, a Wisconsin Democrat. The deal “will create a satellite radio monopoly,” he said.
The companies filed documents with the FCC showing support from groups such as the National Association for the Advancement of Colored People and individuals including former FCC Commissioner Reed Hundt, who oversaw the development of rules for satellite radio and granted Sirius and XM their licenses.
The combined company will eliminate duplicate programming.
Related articles:
http://arstechnica.com/news.ars/post/20080324-sirius-xm-radio-merger-passes-doj-hurdle-fcc-next.html
http://money.cnn.com/2008/03/24/news/companies/xm_sirius/index.htm?postversion=2008032415
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