XM-Sirius Merger is a Go!

XM/Sirius Merger a Go: What It Means To You [Satellite]

FD20BDF6-8560-4683-9A91-826834B1428F.jpg


XM and Sirius just cleared the largest (and longest) hurdle on their path to getting all conjoined: The Justice Department officially okayed Sirius’s $5 billion buyout of XM. They said that the growth of mobile broadband “made it even more unlikely that the transaction would harm consumers in the longer term,” squashing arguments from radio and broadcasting groups the merger would be anti-competitive. The DoJ thumbs up makes the merger more likely to happen, which Sirius CEO Mel Karmazin has repeatedly promised will make for cheaper, better programming

Next stop is the FCC. Chief Kevin Martin is vocally hot on competition, so he’ll probably squeeze them pretty hard on following through, though he’s likely to take the same stance as the DoJ: The environment’s so scrambled right now, a single satellite radio company isn’t really going to harm consumers. And if they do raise prices and start sucking, people have plenty of other options to abandon them for. On the other hand, they were both already on life support, so this jolt might not be enough to fully re-animte them.

(Via Gizmodo.)

Advertisements

No comments yet

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: