The much sought after XM (NSDQ: XMSR) - Sirius (NSDQ: SIRI) merger has been cleared by the Department of Justice, and will now go to the FCC for the final approval.
At the DOJ Web site, they said in a statement: “After a careful and thorough review of the proposed transaction, the Division concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers.”
One of the major ideas that swung the vote the way it did, was the DOJ didn't confine the market the two satellite providers operate in ... solely to that realm.
Instead, they found the competitive landscape to go beyond the narrow market being served.
Another element included was they felt that the market itself won't support a major price increase, even if there weren't any other competitive forces in the marketplace.
The question remains whether the FCC will add any conditions to the merger which would placate opponents.
Comment Preview