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Article

Title: XM-Sirius Radio Merger May Live

Author: McBride, Sarah; Boles, Corey Article Type: Company
Source: Wall Street Journal, v250 n121 pC1(2) Publication Date: Nov 21, 2007
  ISSN: 0193-2241
  Illustrations: Graphs
URL of Publication: http://www.wsj.com

The proposed merger between the nations only satellite-radio broadcasters, XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc., may clear all the hurdles in its path and come to actualization. The merger was not expected to win approval from the Federal Communications Commission (FCC) and the Justice Department, but several events have shifted perception. Perhaps most significantly is the satellite-radio companies pledge to adopt tiered pricing in which users pay different monthly fees depending on how many channels they purchase. This most likely struck a cord with FCC chief Kevin Martin, who has long made tiered pricing a personal crusade with cable-TV operators. The two satellite-radio companies' argument that they face more competition than just each other is also gaining clout and it seems that FCC officials are beginning to think in terms of a broader media landscape. The powerful National Association of Broadcasters is against the merger, as are a large number of lawmakers. But the ones to make the decision are the Justice Departments top antitrust official, Assistant Attorney General Thomas Barnett, and the FCC commissioners. The stock market is assigning the deal a 60 percent chance of getting through.

Special Features: Graphs

Companies:
SIRIUS Satellite Radio TecTerms
XM Satellite Radio Inc

Products:
Satellite Radio

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