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The Honolulu Advertiser
Posted on: Tuesday, June 17, 2008

FCC chair backs satellite radio merger

By John Dunbar
Associated Press

WASHINGTON — The chairman of the Federal Communications Commission now says he is satisfied the $3.8 billion merger of the nation's only two satellite radio companies is in the public's interest, but that's no guarantee the deal will win final approval.

Two of the other four commissioners are ardent foes of allowing big media companies to get bigger and a third has been sympathetic to the broadcast industry, which opposes the satellite radio deal.

Some powerful members of Congress also have spoken out against the merger, making it anyone's guess whether it will receive the three votes necessary for approval.

FCC chairman Kevin Martin said Sunday he will recommend that Sirius Satellite Radio Inc.'s buyout of rival XM Satellite Radio Holdings Inc. be approved by the five-member commission.

The companies offered concessions, including turning 24 channels over to noncommercial and minority programming and a three-year price freeze on service.

Commissioners can vote as soon as they receive Martin's order recommending the deal. By midafternoon yesterday, it had not been circulated to the other offices, according to people familiar with the process.

The other four commissioners have kept their views on the deal largely to themselves. Unlike in other major decisions, Martin has no indication how they may vote.

The XM-Sirius deal will affect millions of subscribers who pay to hear music, news, sports and talk programming, largely free from advertising, in homes and vehicles.

Under the proposal, XM shareholders will receive 4.6 shares of Sirius stock for every share of XM they own.