Shareholders of Sirius Satellite Radio and XM Satellite Radio, the only two satellite radio providers in the United States, are to vote on Sirius' proposed multi-billion dollar acquisition of XM. The deal has not yet been given approval from the Federal Communications Commission (FCC), nor the Justice Department, whom are looking into the proposed merger for potential antitrust implications that could raise prices for consumers.
On November 13th, XM shareholders will vote whether or not to be bought out by Sirius, while Sirius investors must approve the issuance of shares and related matters. Under the deal, XM shareholders would get 4.6 Sirius shares for each XM share. In 1997, both companies were granted licenses by the FCC, but had to agree that there would never be a merger between the two in case a satellite radio monopoly was created.
Nowadays however, the companies claim that new technology that has been introduced in the last 10 years, including HD Radio and even MP3 and iPods, serve as competition for Satellite Radio. It's up to the FCC to decide whether transferring both licenses to one company is in the public interest.
Source:
Yahoo (AP)
Nowadays however, the companies claim that new technology that has been introduced in the last 10 years, including HD Radio and even MP3 and iPods, serve as competition for Satellite Radio. It's up to the FCC to decide whether transferring both licenses to one company is in the public interest.
Source:
Yahoo (AP)
