After a long 13 months, the DOJ has finally approved the proposed XM and Sirius merger. Keep an eye on Orbitcast in the coming hours and days for continuing coverage. (Concessions…?)
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. The Division reached this conclusion because 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. […] Accordingly, the Division has closed its investigation of the proposed merger.
