The Justice Department approved Sirius Satellite Radio’s $5 billion buyout of rival XM Satellite Radio on Monday, saying the deal was unlikely to hurt competition or consumers.
The deal was approved despite opposition from consumer groups and an intense lobbying campaign by the land-based radio industry.
Sources say the merger will save hundreds of millions of dollars in operating costs—savings that will ultimately benefit their customers.
XM Satellite shares rose $1.97, or 16.5 percent, to $13.90 in afternoon trading after the government’s announcement while Sirius shares rose 28 cents, or almost 10 percent, to $3.18.
I have XM – how will this effect me???
Brian, it won’t !! don’t forget we XM subs have the power of the mighty dollar.and at XM, believe it or not they listen.
I’m really surprised this deal went through. But really, it’s not like anyone else stepped up to challenge XM and Sirus in this space. There’s no third or fourth competitor. If the only way for each company to survive was to combine so be it.
Land based radio should be worried.. because they suck.