XM Satellite, SIRI combination gets U.S. antitrust approval – according to Bloomberg.
The companies proposed the combination to stem billions of dollars in losses incurred in attracting talent, sports deals and subscribers and to reach profitability sooner than they could on their own. Sirius, based in New York, features Howard Stern and Nascar and has 7.67 million subscribers. Washington-based XM, with Oprah Winfrey and Major League Baseball, has 8.57 million.
The companies filed documents with the FCC showing support from groups such as the National Association for the Advancement of Colored People and individuals including former FCC Commissioner Reed Hundt, who oversaw the development of rules for satellite radio and granted Sirius and XM their licenses.
Shareholders of the two companies approved the combination in separate special meetings Nov. 13. More than 96 percent of those who voted approved the transaction.
Backing from the Federal Communications Commission now represents the last hurdle for Sirius, which is buying its larger rival in a deal valued at $4.2 billion. Investors will receive 4.6 Sirius shares for each XM share they own.
Sirius and XM subscribers, who now pay $12.95 a month, may pay as little as $6.99 with the proposed tiered pricing.
XM Satellite Radio Holdings Inc. (nasdaq: XMSR) is currently trading up $2.20 @ $14.15 followed by Sirius Satellite Radio Inc. (nasdaq: SIRI) up $0.28 @ $3.19 in trading. Earlier in the month their top executives said they expect U.S. regulators to approve their merger.
