Satellite radio penalty expected to lead to merger approval

Tag : Lead Wires

Satellite radio penalty expected to lead to merger approval
July 24, 2008 10:28 EDT
WASHINGTON (AP) -- The nation's two satellite radio companies haveagreed to pay nearly 20 million dollars to settle FCC rulesviolations.

The chairman of the Federal Communications Commission tells TheAssociated Press that the agency reached an agreement lateyesterday in which XM Satellite Radio Holdings will pay 17.5million dollars and Sirius Satellite Radio will pay 2.2 million.

The agreement requires a full vote of the commission.

It is expected to lead to approval of Sirius's 3.9 billion dollarbuyout of XM. The proposed merger has been under regulatory reviewfor more than a year.

The violations involve complaints about interference the satelliteradios cause with land-based radio stations. They also includeviolations related to land-based signal repeaters the companiesoperate to deliver programming.

The FCC's vote on the buyout is currently deadlocked 2-2, with onemember of the commission still undecided. According to agencyofficials, that member will vote to approve the takeover once theenforcement action is circulated to the full commission.