No guaranteed date in sight
Last modified on Wednesday, 27 February 2008 07:49
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.