Justice Department gives nod to merger
Published: March 24, 2008 at 4:19 PM
WASHINGTON, March 24 (UPI) -- The U.S. Department of Justice approved the merger of Shareholders of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. Monday.
The department cited "a lack or competition between parties" based on the specialized equipment consumers need to purchase to engage either service.
"There has never been significant competition for customers who have already subscribed to one or the other service," the department said.
Long-term contracts signed with car companies has already carved up and defined that territory and newer mobile broadband Internet devices made it unlikely the merger would harm consumers in the long term, the department said.
In November, Sirius and XM shareholders agreed to the $13.6 billion merger in which Sirius would take over XM.
The deal now waits for a Federal Communications Commission ruling, which is expected soon.
The department cited "a lack or competition between parties" based on the specialized equipment consumers need to purchase to engage either service.
"There has never been significant competition for customers who have already subscribed to one or the other service," the department said.
Long-term contracts signed with car companies has already carved up and defined that territory and newer mobile broadband Internet devices made it unlikely the merger would harm consumers in the long term, the department said.
In November, Sirius and XM shareholders agreed to the $13.6 billion merger in which Sirius would take over XM.
The deal now waits for a Federal Communications Commission ruling, which is expected soon.
© 2008 United Press International. All Rights Reserved.
This material may not be reproduced, redistributed, or manipulated in any form.
This material may not be reproduced, redistributed, or manipulated in any form.
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