If youve been following the news over the last few months, youve probably noticed a few articles analyzing, speculating or simply spreading rumours regarding a merger between Sirius and XM Radio. Leave all the non-facts behind and focus on the present. Federal Communications Commission Chairman Kevin Martin publically announced that the FCC has decided not to approve a merger between these two satellite radio rivals.
The obstacle comes not from 2007, but nearly decade ago, in 1997. When the FCC initially licensed the two companies, there was language in the licensing barring one from acquiring control of the other. Sirius CEO Mel Karmazin must be heartbroken; he has often publically announced how dearly he would love a merger. In November 2006, Karmazin seriously believed that a merger would financially benefit both companies.
Even if the FCC changed their mind regarding the merger between Sirius and XM Radio, it would still have to pass antitrust scrutiny by the Department of Justice. But dont despair. This may be a good thing; we all know how terrible a lack of competition can be for consumers.
News source: Ars Technica