Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. may get a green light on their merger if they pay about $20 million in fines, sources said.

Federal Communications Commissioner Deborah Tate would cast the deciding vote in favor of the merger if the companies pay the fines for various violations on tower locations and power limits, sources told The Wall Street Journal.

The combined companies, once rivals, are worth $7.5 billion, the Journal reported.

The merger includes an agreement to freeze prices for existing customers for three years. XM would also pay about $17.5 million and Sirius about $2 million to settle complaints their transmissions were sometimes too strong and bleed into local radio stations.

If resolved soon, the deal would allow the companies to push ahead with holiday marketing, a critical selling period for the industry, the Journal reported.

Copyright 2008 by United Press International


Publication date: 24 July 2008   

Source: UPI-1-20080724-17393500-bc-us-xmsirius.xml

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