Sunday, March 2, 2008

XM and Sirius extend merger deadline by 2 months

http://entertainews.blogspot.com


NEW YORK (Reuters) -
XM Satellite Radio Holdings Inc and
Sirius Satellite Radio Inc have extended by two months a
deadline to potentially terminate without penalty Sirius's
year-old proposed acquisition of its bigger rival.

Under the original terms of their deal, first announced in
February 2007, the companies could have walked away after March
1 if they did not receive regulatory approval.

U.S. regulators, including the Federal Communications
Commission
and Department of Justice, have yet to decide
whether to approve the merger. Both companies said this week
that they are optimistic both agencies will approve the deal.

The deal's strongest critics, including the traditional
radio industry, charge that combining the two U.S. satellite
radio companies would be anti-competitive.

XM and Sirius have said that with the bulk of new satellite
radio subscription coming along with the purchase of cars, the
relatively small satellite radio industry would merely be one
entertainment option for consumers already using
high-definition radios, iPods, and backseat televisions.

The friendly deal, valued at about $4.6 billion when it was
announced, called for XM shareholders to receive 4.6 Sirius
shares for each XM share held. It would bring under one roof
programming by Howard Stern, Oprah Winfrey, Bob Dylan, Major
League Baseball and the National Football league.

Shares of both money-losing companies have slumped since
one year ago, with Sirius shares off about 20 percent and XM
shares down about 16 percent.

(Reporting by Franklin Paul, editing by Phil Berlowitz)

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