Thursday, January 11, 2007

Sirius Satellite and XM Satellite Radio merger would face big regulatory issues - report

Sirius Satellite Radio, the New York listed radio satellite company and its Washington DC competitor XM Satellite Radio, would face big regulatory issues if the merger takes place. The unsourced Wall Street Journal report, part of the paper's Breaking Views column, reported that while an analyst at Lehman Brothers said the two companies combined could save USD 1.3bn annually, the regulatory issues with a deal could make a merger hard to get done. According to the report, a way to get around some of the potential regulatory concerns over increased prices if the two combined is to either argue satellite radio is not a competitor to terrestrial radio and digital music or for the combined company to offer voluntary controls over price.


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