XM-Sirius merger approved by US Justice Department

25 March 2008

The US justice department yesterday approved Sirius Satellite Radio Inc.'s proposed $4.59-billion buyout of rival XM Satellite Radio.

This decision was based on the fact that the new company would not monopolise the market as iPods, MP3 players and other such gadgets are providing options to people to listen to music.

Thomas O Barnett, in announcing the decision, clarified that in several important segments of their business, with or without the merger, the parties do not compete today and that the merger would thus not be obviating any competition between them.

Analysts now predict that this long awaited decision will make it easier for other media companies to merge, as the definition of who a competitor is, will change. This is especially applicable to any medium that is subject to digitisation.

Consumers stand to be more entertained, as this merger brings together programmes by Oprah Winfrey, Willie Nelson and Snoop Dogg, who have lucrative and exclusive contracts with XM, as also with those on Sirius, including Howard Stern, Martha Stewart and National Public Radio.

Sports fans will also now be treated to a single source of commentary, as XM offers play-by-play from Major League Baseball games and Sirius broadcasts live play-by-play games of the N.F.L. and N.B.A. as well as live Nascar races.