Bob W.

next step: FCC panel votes on it.



FCC boss backs Sirius-XM deal
Chairman Kevin Martin recommends $5 billion deal in exchange for concessions; Sirius rises 3.5%,

Last Updated: June 16, 2008: 10:40 AM EDT


NEW YORK (AP) -- Shares of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. rose Monday morning after the chairman of the Federal Communications Commission said the two satellite radio broadcasters should be allowed to combine.

Kevin Martin recommended approval of the deal in exchange for concessions, including the creation of 24 channels for noncommercial and minority programming, a three-year freeze on prices for both companies, packages offering services from both XM and Sirius, and standards designed to encourage competition from the companies that make their radios.

Sirius (SIRI) shares rose 9 cents, or 3.5%, to $2.63 in morning trading, and XM (XMSR) stock gained 40 cents, or 3.7%, to $11.26.

Martin's recommendations bring the deal closer to a long-awaited vote by the five-person FCC panel -- the last regulatory hurdle to the buyout. The Justice Department approved the deal in March, saying it is not likely to reduce competition or hurt consumers.

The companies agreed to combine in February 2007 and once had hoped to complete the deal by the end of 2007. Sirius' offer calls for XM shareholders to receive 4.6 shares of Sirius for every share of XM they own.

Miwa

<ul><li><a href="http://arstechnica.com/news.ars/post/20080616-fcc-chair-willing-to-consecrate-xm-sirius-union.html">More info</a></li></ul>

Bob W.

that's why I said 'next step: the panel votes on it'. there are 5 on the panel, majority wins.