SAN FRANCISCO (Thomson Financial) - The Department of Justice on Monday approved the proposed merger of XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc, saying the deal is not likely to substantially lessen competition.
The DOJ's Antitrust Division said in a release 'the evidence did not show that the merger would enable the parties to profitably increase prices to satellite radio customers for several reasons, including: a lack of competition between the parties in important segments even without the merger; the competitive alternative services available to consumers; technological change that is expected to make those alternatives increasingly attractive over time; and efficiencies likely to flow from the transaction that could benefit consumers.'
The merger still needs to be approved by the Federal Communications Commission.
Shares of XM rose 14% to $13.55, while Sirius shares gained 6% to $3.07. Gabriel Madway gm COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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