XM, Sirius deal may get needed vote, AP reportsWashington Business Journal - by Jeff Clabaugh Staff Reporter
Federal Communications commissioner Jonathan Adelstein says he will back the proposed merger between XM Satellite Radio and Sirius Satellite Radio -- if the two agree to additional conditions on the merger, according to the Associated Press.
XM and Sirius already have the backing of FCC Chairman Kevin Martin. The deal also has the support of two of the five FCC commissioners, leaving the merger one vote shy of the majority needed for approval.
Adelstein told the AP he wants the companies to cap prices for six years and make one quarter of their satellite capacity available for public interest and minority programming. He circulated his recommended conditions to other FCC commissioners Thursday, the AP reports.
“It is critical that if we’re going to allow a monopoly, that we put in adequate consumer protections and make sure they’re enforced,” Adelstein told the AP.
Martin’s support of the merger already includes a number of conditions the two broadcasters have agreed to, including freeing up some channels for non commercial or minority broadcaster use.
XM Satellite and Sirius Satellite first announced plans for their merger more than a year and a half ago. Shareholders approved the merger in November. The Justice Department signed off on it last month.
The FCC has given no indication of when a formal vote will be taken. .
XM Satellite stock (NASDAQ: XMSR) ended Thursday trading down 17 cents to $8.44 per share. Sirius (NASDAQ: SIRI) gained 3 cents to $2.10. Both stocks have lost a third of their value this year, eroding the value of their stock-based merger to $3.1 billion, from $4 billion when it was first announced.
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