FCC Commissioners Set To Approve XM-Sirius Deal

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A majority of commissioners at the Federal Communications Commission have reached a deal to approve Sirius Satellite Radio Inc.'s long-pending purchase of XM Satellite Radio Holdings Inc. The final hold-out, Republican commissioner Deborah Taylor Tate, agreed to vote to approve the deal after winning several concessions from the companies involving enforcement issues. "I think it's fair to say an agreement in principle has been reached," FCC Chairman Kevin Martin said in an interview Thursday morning. "We're still trying to work out the language."

A deal was reached with the companies late Wednesday night to pave the way for Ms. Tate's vote on the merger, Mr. Martin said. Four of the commissioners had already voted on the deal, but they had split 2-2 on whether to approve it. The companies have agreed to pay almost $20 million to settle the complaints, with XM paying about $17.5 million and Sirius paying about $2.2 million.

View: Full Story at the Wall Street Journal

(2 replies) #1 Kreuger on 26 Jul 2008 - 21:10

I don't quite get why they needed the FCC's permission for this. Isn't the whole point of satellite radio so that nobody but the stations can control the content? Wasn't that why Howard Stern went to Sirius? Because the FCC kept condemning his programs?

#1.1 csfeist on 26 Jul 2008 - 22:32

(Kreuger said @ #1)

Think of it this way. Satellite Radio is the same as Satellite/cable tv. It's still regulated by the FCC just like Over the air tv/radio but they have less restrictions cause they are pay for services. But just because they are pay for services doesn't meant the FCC doesn't regulate them in some form or fashion.. They just don't have as many restrictions on them as over the air free tv/radio does.

So regardless of the type of service it still has to get FCC approval since that is the regulatory body that oversees it.

#1.2 RangerLG on 27 Jul 2008 - 02:43

FCC gave the original licenses to the two companies, so they need permission to merge from both the DOJ and the FCC.

Edit: Just read on Orbitcast that it is official. The two companies are going to merge.

(1 reply) #2 +vlsi0n on 27 Jul 2008 - 10:15

I'm wondering though, who is/are the competitor(s) to Sirius then? When XM was competing against Sirius the consumer had a choice and both companies had to stay appealing. Now?

#2.1 RangerLG on 27 Jul 2008 - 23:04

According to the DOJ, who decided that the merger would not create a monopoly, both satrad providers compete with regular radio, internet radio, and personal music devices.

(1 reply) #3 captblaze on 27 Jul 2008 - 11:20

now... you get what they give you after the 3 year price freeze ends... not only that if you are an XM customer you never had the opportunity to get a $500 lifetime subscription like sirius offered their customers... that means XM customers continue to pay and the sirius subscribers who were looking ahead get the service for free...

why didnt the FCC or congress require that XM do the same as part of the deal? oh yeah... 19 million dollars from the new satellite radio monoply to let it all happen regardless of the consumers wishes

right on you Fat Cash Cow

#3.1 betasp on 28 Jul 2008 - 12:06

So you think the FCC should have required XM to offer lifetime subscriptions before the merger? What gives the FCC the right to do that?

#4 Joshie on 28 Jul 2008 - 04:52

Anyone else notice that the source article never once mentions Tate's party affiliation, meaning this post had to go out of its way to?

Always feel like that sort of thing is manipulative, encouraging people to ignore the content and just let their opinion flow with party leanings.

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