The two main regulatory approvals needed to clear the XM Satellite Radio Holdings and SIRIUS Satellite Radio merger are believed to be in their final phase, it is understood. It is also understood, however, that the process could still take several months.
Meanwhile, lawyers interviewed for this article are skeptical as to whether the recent green light given to Whole Foods and Wild Oats by anti-trust regulators has any positive implications for this transaction.
The Federal Communications Commission, or FCC, must approve the transfer to SIRIUS of control of XM and the subsidiaries of XM holding FCC licenses and authorizations, as well as the deemed transfer of FCC licenses and authorizations held by SIRIUS and its subsidiary to the combined company. In addition, XM and SIRIUS each filed notification and report forms with the Department of Justice (DoJ) in March.
FT writers Nadia Damouni and Bhavna Kaul appear to have been getting paid by the word, but the short form is this: the Sirius/XM merger seems to be in a patch of smooth sailing towards becoming a realized deal, but there's still more work ahead. Also, Whole Foods hasn't gotten enough good press out of their successful outmaneuvering of the FTC with regard to buying competitor Wild Oats.
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2 comments:
I do some work with NAB and I was surprised how much the FT article glazed over the fact that a merger would cause a monopoly. XM and Sirius' lawyers are clearly trying to finagle their way out of this point, but the facts are clear -- if they merge, XM and Sirius will have a monopoly on satellite radio. Not too long ago, EchoStar and DirecTV were blocked from forming their own satellite TV monopoly. I don't see how this case is different.
The Sirius/Xm point is that they are competing against am/fm/cd/ipod/fmhd, so they have plenty of competiton and they are the only one with a monthly fee. Its not the same as Dish TV, because the satellite radio stations have split content, the consumer is not making just a money decision but a decision of Oprah vs. martha stewart, or NFL vs, MLB, and with the the merger they can have both. It would be like saying if you chose one of the satellite tvs over the other you would not get ABC or Espn.
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