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Update State Group Takes Aim at Sat Radio Merger - 02-June-2008, 13:40

State Group Takes Aim at Sat Radio Merger

Recently, representatives from the Louisiana Association of Broadcasters met with staff at the Federal Communications Commission on the pending merger between XM and Sirius, voicing concerns about the impact a combined satellite radio company could have on local radio.

In a filing describing the meetings, the state-level broadcast group said a merged satellite radio entity could "siphon off local advertising revenue, thereby harming the ability of local broadcasters to produce local programming and have the financial capability to assist local communities in times of emergency." The association cited instances such as Hurricane Katrina in its comments.

The group also took issue with placing control of all satellite radio spectrum in the hands of one entity.

The FCC is the final regulatory hurdle for the companies to complete their merger. The deal won clearance from the Justice Department's antitrust unit in March.
   
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