Sirius, XM continue merger agreement indefinitely
updated 03:55 pm EDT, Wed April 30, 2008
Sirius XM Merger Agree
Sirius and XM today said they would continue their merger agreement indefinitely. The two satellite radio operators say they will continue to extend their agreement on a recurring two-week basis until the US government completes its decision on the proposed merger or else one of the companies decides to back out of the deal. Neither company can back out until the May 15th date set with an earlier agreement struck in February.
An explanation for the indefinite extension is unknown, but the two companies are believed to be hopeful for full approval in the near future. The US Department of Justice recently approved the merger in its own capacity, arguing that the union of the two stations won't be anti-competitive, but will need to be joined by a similar ruling from the Federal Communications Commission before any merger can take place.
Critics are believed to be partly responsible for the more than year-long delay in the merger and have claimed that a unified Sirius and XM would squeeze out conventional radio service as well as make it difficult for additional satellite radio providers to enter the market.
