FCC Approves Satellite Radio Merger in 3-2 Vote
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Federal regulators formally approved the merger of the nation's only two satellite radio operators Friday, ending a 16-month-long drama closely watched by Washington and Wall Street.
Sirius Satellite Radio Inc.'s $3.3 billion buyout of rival XM Satellite Radio Holdings Inc. will mean 18 million-plus subscribers will be able to receive programming from both services. Executives say it will mean huge cost savings that will lead to a first-ever profit for the relatively nascent industry.
The Federal Communications Commission voted 3-2 to approve the buyout, with the tie-breaking vote coming Friday night from Republican commissioner Deborah Taylor Tate.
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Tate had insisted that the companies settle charges that they violated FCC rules before she would approve the deal. The companies agreed this week to pay $19.7 million to the U.S. Treasury for violations related to radio receivers and ground-based signal repeaters.
FCC Chairman Kevin Martin confirmed the final 3-2 vote Friday night.
"I think it's going to be, in the end, a good thing for consumers and be in the public interest," he told The Associated Press.
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The approval appeared to hit a glitch on Friday when a dispute surfaced between the chairman and Tate over the enforcement issue, but differences between the two were quickly resolved, and the approval went forward.