The Deal
Sunday, November 8, 
8:13 am

FCC approval of XM-Sirius imminent

  Share     E-Mail    Discussion    Print Story
Sirius_devices.jpgThe Federal Communications Commission's 400-plus day review of the controversial $13 billion hook-up of XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. is coming to a close.

Continue reading below

Also on Dealscape

Sources familiar with the review said it is "highly probable" the deal could be approved Thursday. If not, then Friday is a strong possibility. Another indication that the deal review is imminent: Sirius and XM on Thursday put out a statement saying they are willing to settle some outstanding enforcement issues.

That may appease GOP Commissioner Deborah Tate, who will cast the deciding vote in the transaction. She will only support the deal if FCC Chairman Kevin Martin agrees to fine XM-Sirius for a variety of violations. The agency's two other Republicans, Martin and Commissioner Robert McDowell, have already voted to approve the deal. The FCC's two Democratic commissioners have voted against it.

Tate wants fines related to wireless devices XM-Sirius used to transmit audio signals from satellite radio devices to in-dash car radios that are noncompliant with FCC limits. She also worries about hundreds of XM-Sirius antennas, known as terrestrial repeaters, which either are not in place in approved locations or emitting signals that are too strong.

XM-Sirius, in their statement, said they will take steps to address the issue of noncompliant radio devices "remaining in the hands of consumers." The company also agreed to shut down 50 terrestrial repeaters and either close or "bring into compliance" an addition 50. XM also agreed to make contribution to the U.S. Treasury of $17 million and $2 million for Sirius.

Sirius wants to make the contribution because it avoids the negative stigma associated with a fine. A contribution may also be treated better, from a tax point of view. - Ron Orol


See Dealscape: FCC hooks up XM-Sirius deal

See Tate's bio from Deal Journal

Ron Orol is a Washington-based reporter for The Deal and author of Extreme Value Hedging: How Activist Hedge Fund Managers Are Taking on the World.






Post a comment





The Deal Pipeline

Deal Video


Inside The Deal: Linklaters' Schmidt says how regulators handled Pfizer Inc.'s acquisition of Wyeth is an outlier of how others merger reviews will be conducted.


More video...

Crisis On Wall Street
Technology
Deals of The Decade

Community

Industry Insight

Dealing with frozen bank lending

If your bank is not willing to lend, what can you do as your company continues to seek growth?


Judgment Call

The coming age of the renminbi

The Chinese currency will play an increasingly important role in international commerce and finance.


Industry Insight

Banking on PE investments

Howls of protest greeted the FDIC policy statement, but the financial services industry should get over it.


footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg


©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.