Justice Department Approves XM, Sirius Merger

The Justice Department approved a proposed $4.6 billion merger by Sirius Satellite Radio and XM Satellite Radio Holdings, although the deal still must be cleared by the Federal Communications Commission, Reuters reported.

The merger, first proposed in February 2007, would merge the only two U.S. satellite radio providers, both of which are losing money.

Many truckers use the providers’ subscription services, which cost about $13 a month for more than 100 channels of news, music, talk and sports.

Justice said the combination would lead to “substantial” cost savings in consolidating services and lines of radios, and said those savings would most likely” be passed on to consumers, Reuters reported.

The deal was opposed by terrestrial radio interests, including the National Associations of Broadcasters, Reuters said.

The FCC must determine whether the XM-Sirius is in the public interest, and whether to enforce its 1997 order barring either satellite radio company from acquiring the other, Reuters reported.

Last July, the two unveiled parts of their post-merger plan, including allowing various levels of pricing and programming.

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