SIRIUS, XM NOW
SIRIUS XM RADIO INC.
The company has changed its name to Sirius XM Radio Inc. and will continue to be traded on NASDAQ under the symbol
The combined satellite radio company will have more than 18.5 million subscribers, making it the second-largest radio company in the
Sirius XM CEO Mel Karmazin was predictably pleased after the nearly 16-month ordeal.
"I am delighted to announce the completion of this exciting merger between Sirius and XM. We have worked diligently to close this transaction and we look forward to integrating our best-in-class management teams and operations so we can begin delivering on our promise of more choices and lower prices for subscribers.
"Every one of our constituencies is a winner. Combined, Sirius XM Radio will deliver superior value to our shareholders. By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth. Our laser focus on subscribers will continue and listeners can be assured that there will be no disruption in service. We also believe that the completion of the merger will eliminate any confusion that has been lingering in the marketplace.”
XM shareholders will receive 4.6 shares of Sirius common stock for each share of XM.
Not everyone was so excited.
In his dissent issued last night, FCC Commissioner Michael J. Copps claimed the merger created a monopoly that will hurt consumers.
"The majority’s own findings provide a compelling case for rejecting this merger," he wrote, enumerating that the monopoly will result in “price hikes to consumers that will grow over time… No one has been able to explain to me how this could possibly serve the public interest."
Copps noted that in a similar case, the FCC rejected the satellite TV merger. "I understand why the companies would prefer to escape the rigors of competition," he added. "What I cannot understand is why the majority thinks consumers will be better off without it."
Fellow Commissioner Jonathan Adelstein, who was reportedly pushing for greater concessions from the companies for a "yes" vote but ultimately decided to turn the merger down, wrote in his dissent that the Commission should in the merger process have resolved interference issues between satellite radio and wireless communications in the 2.3 GHz band.
Chairman Kevin Martin praised the companies for demonstrating the merger served the public interest, and for agreeing to offer a la carte programming, additional programming obligations, and open tech standards for receivers. Commissioner Debi Tate, who issued the deciding vote, declined to issue a statement.
