Sirius, XM Merger Approved By Justice Department
Sirius and XM Sitting In A Tree…
The United States Justice Department has announced that it has approved the merger between Sirius and XM satellite radio companies. The news comes after a year of deliberations on whether or not the merger would hurt consumers.
The Department of Justice concluded that an XM-Sirius merger was not anti-competitive due to the fact that other media companies such as Clear Channel and Apple served as viable alternate options for customers. Many other considerations factored into the Justice Department’s decision, including data that suggested the companies were not even competitive with one another due to the fact that there was “very little switching between companies after a person subscribes to a particular service,” Assistant Attorney General Thomas Barnett revealed.
Even though the merger has antitrust clearance, it still must be approved by the Federal Communications Commission (FCC). The FCC must determine whether the XM-Sirius is in the public interest, and whether to enforce its 1997 order barring either satellite radio company from acquiring the other.
The Future: Although, the FCC may impose some conditions on the deal, it will approve the marriage in short order.
