Government Approves Satellite Merger

The U.S. Justice Department approved the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. on Monday, paving the way for thousands of listeners to hear everything from Howard Stern to Bob Dylan to professional sporting broadcasts, according to Bloomberg News.

In approving the deal, the government said the combined company won't be able to raise prices profitably because of competition from such forms of audio entertainment as broadcast radio and MP3 players.

The two large satellite radio companies announced plans to merge last year. The $4.5 billion merger would create one of the largest satellite radio companies in the country.

"We just simply found the evidence did not support a challenge to the transaction under the antitrust laws," Thomas Barnett, the Justice Department's antitrust chief, told reporters. There wasn't enough evidence the merger "would substantially lessen competition or harm consumers," he said.

The companies are still awaiting approval by the Federal Communications Commission. FCC Chairman Kevin Martin signaled March 20 that the agency is close to a decision, telling reporters he had asked its staff to draft "various options." The commission "is looking at it," FCC spokeswoman Mary Diamond said Monday, according to Bloomberg.

Sirius Radio is the popular satellite station that broadcasts the uncensored Howard Stern Show daily, while XM Satellite Radio features the Opie and Anthony Show, as well as games from the National Hockey League.