FCC Chief Recommends Approval of Sirius-XM Merger
The only two U.S. pay-radio companies agreed to not raise rates and to sell smaller packages of channels at lower prices, Martin said in a statement. They'll also set aside channels for noncommercial and minority programmers, he said.
“On balance, this transaction would be in the public interest,'' Martin said.
Martin hasn't received assurances his proposal will gain the needed majority vote from the five-member commission, said two FCC officials who declined to be identified. The agency poses the final regulatory hurdle for the all-stock deal, valued at $3.85 billion based on today's closing prices.
Sirius and XM executives told the FCC they won't raise prices for 36 months if the combination is approved, the agency officials said.
Other promises include allowing any manufacturer to make radios, letting consumers purchase individual channels, providing 12 channels for noncommercial use and 12 channels for competing, minority broadcasters, the officials said.
XM spokesman Chance Patterson had no comment. Sirius spokesman Patrick Reilly didn't return a phone call.
Sirius, based in New York, rose 8 cents, or 3.2 percent, to $2.62 at 4 p.m. New York time in Nasdaq Stock Market trading. XM, based in Washington, advanced 43 cents, or 4 percent, to $11.30. Bloomberg News