XM-SIRIUS SATELLITE RADIO MERGER MAY BE HEADED FOR APPROVAL AS THE TWO COMPANIES MAKE COMMITMENTS TO FCC CHAIR ON PRICING AND COMPETITION ISSUES

On Monday, June 18, washingtonpost.com reported that Federal Communications Commission Chairman Kevin Martin has said that he will support the XM-SIRIUS merger, after the two companies agreed to certain commitments as to pricing and competition (FCC Chair To Support XM-Sirius Merger.) Martin's support could be the last hurdle to approval for the much criticized merger, washingtonpost.com reports.

This is a long way from 1997, when the FCC approved the licenses of XM and SIRIUS on the condition that the two companies never merge. Martin said that the reversal, allowing the merger, is "in the public interest." Stating that "this is an unusual situation", Martin is now expected to issue an order to the FCC voting committee recommending the merger be approved.

Since being licensed in 1997, both companies have spent hundreds of millions of dollars developing radio content, but neither company has come close to recouping their financial commitments.

Both companies have invested heavily in signing mega-media names such as Howard Stern, Martha Stewart, and Oprah Winfrey as radio show hosts. These commitments, both companies contend, are the critical building blocks of satellite radio viability, and of financial success.

The merger, XM and SIRIUS contend, will turn the table on heavy losses which may stem, at least in part, from head to head competition between the two companies in the developing stages of satellite radio. The merger may signal an end to the growing pains that have been evident over eleven years of competition between the two companies.

A key problem for the companies has been the need to sign costly mega-personalities before the audience is developed or educated to the forum. Accordingly, revenues from these high-potential radio shows lag far behind the expense of signing these personalities in the early stages of marketing and development. A merger could eliminate this problem.

Here are a few pertinent articles on the XM-SIRIUS merger (XM / Sirius merger approved! - Engadget), (FORTUNE: Techland At long last, an XM-Sirius union?), and (FCC staff and chairman back XM-Sirius merger.)