XM and Sirius get big endorsement
Posted
Jun 16 2008, 02:11 PM
by
Kim Peterson
Shares of XM and Sirius got a boost today after FCC Chairman Kevin Martin gave his approval to the $4.2 billion merger of the satellite radio companies. Both companies' shares were up nearly 5% at 11:30 a.m. PST, with XM shares at $11.38 and Sirius shares at $2.66.
Martin approved after the companies said they would devote 24 channels to noncommercial and minority programming. They also agreed to freeze prices for three years, offer a-la-carte pricing and provide interoperable radios.
"With the voluntary commitments
they've offered, on balance, this transaction would be in the
public interest," Martin said in a statement.
What exactly is noncommercial programming? The way Public Knowledge defines it, this programming would be devoted to public education, non-profit education groups and local low-power radio stations.
Martin's blessing isn't an official green light. The five people that direct the FCC must still vote on the deal, and the other commissioners have kept their opinions to themselves. But if you take Martin's approval as a sign of where the panel might be leaning, then XM and Sirius must be celebrating today.
XM has 9 million subscribers and Sirius has 8.3 million.
Related reading:
If Sirius has to be sold, who will buy?
Sirius: Merger or Chapter 11
XM plus Sirius doesn't equal monopoly?
10 stocks that could double in 2008
