Nov 13, 2007 10:59 am US/Central
Sirius Shareholders Approve XM Deal
NEW YORK (AP) ―
Shareholders of Sirius Satellite Radio Inc. on Tuesday approved the company's acquisition of rival XM Satellite Radio Holdings Inc.
The approval, which was expected, now leaves the tougher obstacles of regulatory approval by the Department of Justice and the Federal Communications Commission. XM's shareholders were also voting Tuesday on the deal.
Sirius said in a statement that more than 96 percent of the shareholder votes cast approved the acquisition.
Shareholder advisory firms had endorsed the deal, which would save costs for both companies on acquiring subscribers, programming and broadcasting.
The deal still faces close scrutiny by regulators in Washington, however, and some consumer groups have opposed the combination.
The FCC had originally said the two satellite companies couldn't combine, but that rule can be changed. Sirius and XM have argued that satellite radio now faces more competition for listeners since the advent of portable listening devices like Apple Inc.'s iPod, Internet radio and cell phones that can play music.
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