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Sirius and XM Merger
Wednesday, April 2, 2008 By: Mike Ivey Jr.
Though the FCC is yet to weigh in, the Justice Department finds no anti-competitive issues with a merger between Sirius and XM, the only two satellite radio companies in the U.S.
Industry monopolies are illegal in the U.S.; the two companies forging one satellite machine does not constitute a monopoly, according to the Justice Department, because Clear Channel, CBS and Apple are considered alternate options for music and media consumers. The Sirius/XM merger, more than a year in the making, must be approved by FCC chairman Kevin Martin and the commission before it’s made official.
The merger would create a satellite radio company with approximately 14 million subscribers. Eminem, DJ Green Lantern and Lupe Fiasco are among hip-hoppers who offer fans satellite programming. The new Sirius/XM outfit would also combine popular content like Howard Stern’s radio show and NFL games with MLB broadcasts and programming from media mogul/talk show host Oprah Winfrey.
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