FCC Chief Backs XM-Sirius Merger

The head of the Federal Communications Commission chief is recommending approval of the $3.8 billion merger deal between Sirius Satellite Radio and XM Satellite Radio Holdings, the Associated Press reported Monday.

FCC Chairman Kevin Martin made the recommendation in exchange for a number of concessions, including turning 24 channels over to noncommercial and minority programming, setting the state for a final vote, AP said.

The approval of Sirius’ buyout of XM also would be contingent upon a three-year price freeze for customers, AP said. The proposed merger had been in regulatory review for more than a year.

The FCC had prohibited the merger of the only two satellite license holders when it created the industry in 1997, but Martin said the conditions will make the combination of the two companies good for consumers, AP reported.

The Justice Department approved the buyout in March. Many truckers use satellite radio systems from one of the two companies.