With satellite radio seeing a take rate of nearly 70 percent in new car sales, the merger between XM Satellite Radio and Sirius Satellite Radio is proving to be an important one for the auto industry. The merger has been over a year in the making, but it looks like an end might finally be in sight.
At the Bear Stearns 21st Annual Media Conference, U.S. Federal Communication Commission Chairman Kevin Martin indicated that the FCC would likely rule on the case by the end of this month.
While a stamp of approval isn’t quite a slam dunk, Sirius CEO Mel Karmazin is optimistic about the merger. “The fact that it has lingered this long, it has been interpreted … as good news,” Karmazin told Automotive News.
Karmazin also reported that “Talks with the FCC had recently accelerated.” XM Chairman Gary Parsons validated Karmazins claim, saying that the review was moving forward “in a timely manner.”
Barring any unforeseen setbacks, it sounds like the $4.2 billion deal should be a done deal by late March.
