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FCC (Federal Communications Commission) staff has given a green signal for the merger of XM-Sirius the two radio services, (after almost 15 months) which means that they are nearing a deal (unless something unusual happens in the near future).
The chairman of FCC, Kevin Martin is expected to support a $5 billion merger. The FCC chairman approval came in exchange for concession that include a 3 year price freeze, handing over 24 channels to non-commercial and minority programming, etc. Kevin is said to issue an order this week regarding FCC’s vote to approve the merger.
According to the chairman:
As I have indicated before, this is an unusual situation
I am recommending that with the voluntary commitments (Sirius and XM) have offered, on balance, this transaction would be in the public interest.
The only regulatory barrier left is the FCC. The merger approval now depends on the approval of at least two of four remaining commissioners, whose opinion on the matter is yet to be heard. The $13 billion valued deal which was announced in February, 2007, was approved by XM and Sirius shareholders last December.
In March, the FCC chairman announced that the commission is getting closer in making a decision about Sirius Satellite Radio’s proposed acquisition of rival XM Satellite Radio Holdings.
