Published in News
Sirius/XM merger on hold
by David Stellmack on27 February 2008
No guaranteed date in sight
U.S. Regulators, including the Federal Communications Commission (FCC) and the U.S. Department of Justice (DOJ) have not issued a regulatory ruling on whether they will approve the purchase by Sirius Satellite Radio, Inc. of rival XM Satellite Radio.
As a consequence, Sirius reported a net loss of $.11 per share, or $188.2 million for its fourth quarter. The concern reported by the DOJ and the FCC is whether the merger of the two U.S. satellite giants is anti-competitive.
Sirius added 654,309 subscribers during the quarter, ending the year with 8.32 million subscribers and revenue of $250 million, a 29 percent increase. Many had considered the merger of the two satellite radio providers to be a “rubber stamp,” but the FCC and DOJ are taking their time in considering the merger.