SEC Ends XM Satellite Probe – Opens Door Wider For Merger Approval
The Securities and Exchange Commission (SEC) has ended their recent investigation of XM Satellite Radio, according to recent regulatory filings. The probe, which started in August of last year, looked into XM’s practices related to subscriber data and stock option grants.
XM Satellite indicated that the SEC had dropped its investigation, paving the way for merger approval. “The SEC has advised that it does not intend to recommend any enforcement action,” the company disclosed in a public statement. The announcement comes on the heels of another probe of XM, this time by the Federal Trade Commission (FTC). The agency investigted the satellite radio operator for a number of possible violations, but ultimately dropped its investigation in November.
The recent decision is a good sign for proponents of the Sirius and XM merger. By clearing the air of government scrutiny, the Department of Justice (DOJ) and Federal Communications Commission (FCC) are now free to green light the proposed marriage without an outcry from other agencies..