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• XM and Sirius approval coming, but it stinks

  Posted Jul 24 2008, 10:22 AM by Kim Peterson
  Filed under: Sirius, XM Satellite Radio, Kim Peterson
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  Shares of satellite radio companies XM and Sirius have come back down after the exuberant reaction yesterday to the news that the final FCC commissioner was nearing approval of the companies' merger. Sirius shares have fallen 6% to $2.51, and XM shares are down nearly 1% to $9.96.

  That commissioner, Deborah Taylor Tate, is expected to vote on the deal as early as today, according to the Wall Street Journal. We're also learning more about the fines that will be levied on the two companies for various FCC violations. XM will have to pay $17.5 million and Sirius will owe $2.2 million.

  Something stinks about those fines. They were clearly doled out in return for FCC approval. Doesn't that pretty much sound like blackmail on the FCC's part?   Read More...

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• XM plus Sirius doesn't equal monopoly?

  Posted Mar 24 2008, 02:04 PM by Kim Peterson
  Filed under: Sirius, XM Satellite Radio, Kim Peterson
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  So combining the only two satellite radio providers in the U.S. won't create a monopoly. Huh? That's what the Justice Department said today after giving its blessing to the merger of XM Satellite Radio and Sirius Satellite Radio.

  Both stocks soared today on the news. XM shares closed up 15% to $13.79, and Sirius shares closed up nearly 9% to $3.15.

  The first thing I thought after seeing the news was that the price of satellite radio will go up. But the DOJ sees it differently. The merged company won't be able to raise prices, accordng to the DOJ, because doing so would send customers into the arms of traditional radio, HD radio, iPods and the audio content available on cell phones.   Read More...

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