Washington - The U.S. Justice Department on Monday approved Sirius Satellite Radio's (NASD: SIRI) $5 billion purchase of rival XM Satellite Radio (NASD: XMSR), a deal announced more than a year ago that has been held up by regulators who said today that the combined company is not likely to harm competition or consumers. The proposed transaction still needs approval from the Federal Communications Commission (FCC); shareholders of both companies approved the deal in November.

In its reasoning for concluding its antitrust probe, the Justice Dept. said it did not find evidence that the merger would allow the companies to profitably increase prices on consumers, due to "a lack of competition between the parties in important segments even without the merger; the competitive alternative services available to consumers; technological change that is expected to make those alternatives increasingly attractive over time; and efficiencies likely to flow from the transaction that could benefit consumers."

Opponents of the deal include a range of consumer groups, and traditional radio broadcasters.

Related Links:
http://www.usdoj.gov/opa/pr/2008/March/08_at_226.html

http://snipurl.com/22i2h (AP)

http://www.xmradio.com

http://www.siriusradio.com