Sirius-XM Merger Clears Antitrust Hurdle

Sirius-XM Merger Clears Antitrust Hurdle

The U.S. Justice Department has approved the $5 billion buyout of XM Satellite Radio by Sirius Satellite Radio, saying the merger of the nation’s only two satellite-radio companies does not pose antitrust problems. The two have plenty of competition from other radio and entertainment outlets now and Internet outlets will provide even more in the future, the department ruled.

The deal now requires the approval of the Federal Communications Commission. Shareholders of the two companies, neither of which has ever turned a profit, approved the merger in November. The companies say the merged entity will save hundreds of million in operating costs, which will benefit customers.

Consumer groups and the land-based radio industry opposed the merger.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.