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Justice Department Approves Sat Rad Merger

Sirius and XM Satellite Radio Merger

Posted March 25 2008 02:30 PM by brook.howell 
Filed under: Car Audio News, Other Car Audio

Yesterday, the Justice Department approved Sirius and XM Satellite Radio's plan to join forces. Now the two companies face one last hurdle: getting the FCC to agree to the $5 billion dollar merger.


When the companies announced that they wanted to merge last year, opponents feared what the sat rad monopoly would mean: hiked up prices, less programming choices, etc. And besides, just the word monopoly is scary (except for those of you who just think it's a boardgame).

But, the Justice Department decided that with competition from other forms of media, such as free HD radio and the various MP3 players that we can plug into our cars and home systems, the 2-in-one sat rad company would have to keep prices low in order to compete.

It's good news for the two companies, which are buried in debt. Subscribers, according to XM and Sirius, will be able to enjoy lower prices and more choices due to the deal. One option that might be available if the FCC approves the merger is that instead of subscribers having to purchase the entire programming package, they'll have the option to pick and choose channels. If it works out as they promise, it sounds good to me... and besides I like playing Monopoly.

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