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DOJ Clears XM/Sirius Merger
CongressDaily TechCentral Breaking News:
The Justice Department on Monday afternoon cleared Sirius Satellite Radio's estimated $14 billion merger with rival XM, finding that the proposed pairing is not likely to substantially lessen competition or harm consumers. The ruling, which was more than a year in the making, divided members of Congress as well as competition and consumer watchdogs.
A number of lawmakers, including Senate Judiciary Antitrust Subcommittee Chairman Herb Kohl, D-Wis., expressed opposition to the merger. Justice's antitrust division said evidence did not show that the merger would let the parties hike subscription prices, partly because the two do not compete in important segments of the market. Justice also cited the widespread availability of alternative services like Internet radio and iPods.
SIRIUS and XM each obtained stockholder approval in November 2007 and the deal is still subject to FCC approval. More details will be available on TechCentral shortly.
Update: The full story is available here with input from Justice Department antitrust division chief Thomas Barnett; Sen. Kohl and Rep. Steve Chabot, R-Ohio; the National Association of Broadcasters; analysts and others.
Posted by Andrew on March 24, 2008 03:39 PM | Permalink
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