SIRIUS XM Merger Cleared by Justice Department

Although the National Association of Broadcastersmerger, as neither XM nor Sirius will have the
opposed the Sirius and XM radio merger, it hasmotivation to create, newer, smaller receivers
cleared the Justice Department's antitrustwith the latest features. However, it is also
investigation, which did not find any evidence thatargued that the new company can devote more
the merger between Sirius Satellite and XM Radioeffort and money on the production of new
Satellite will hurt competition.products.
In fact, recent reports show that two companiesSince the two companies plan to maintain
continue to lose money. As a way to cut thedifferent services, the fact that they use
amounts lost by both companies, as well as onedifferent access systems, which makes the two
source of competition, the merger will allow themreceivers incompatible, does not pose a problem.
to streamline operations, and combine theirAlthough a person must now buy a new receiver,
customer base. To date, there are more thanthere is hope that in the future a unified receiver
17.3 million customers between both companies.will allow programs from both companies to be
There are several stars, both musical and not,received. This would allow for a person to listen to
that can be heard on Sirius and XM radio channels.all available channels from bot XM and Sirius radio.
Among the more popular are Howard Stern,Currently, there are seven satellites that serve
Martha Stewart, Oprah Winfrey, Bob Dylan, andXM and Sirius radio services. Three of the
Opie and Anthony. All of these stars have asatellites belong to Sirius and four of them belong
signed contract with one of the two companies.to XM. Additionally, Sirius plans to launch a new
In addition to talk shows, there are also sportssatellite, increasing the count to eight. In the
programs available. With the Sirius and XM radiofuture, the combined construction of satellites by
merger, customers can access the Nationalthe two companies will save the networks millions
Football League, Major League Baseball, Nationalof dollars a year.
Hockey League, Canadian Football League, AMAThe merger, which has been approved by the
Supercross, and NASCAR. With the merger, theUnited States Department of Justice, still requires
two companies hope to reduce the coststhe approval of the FCC. However, given the
associated with sports programming.approval of the shareholders in November 2007,
While the merger has been approved, there arethe Department of Justice's approval in March
still some points that must still be covered.2008, and the overall interest of the public, it does
However, it seems that both XM and Sirius willnot seem like the FCC will oppose this merger. It
continue to operate separately even after thehas been reported that the FCC will make their
merger. Opposition to the merger also includesdecision by the end of the first quarter in 2008.
the idea that progress will be halted by the