Washington — XM and Sirius shares fell after Federal Communications Commission (FCC) chairman Kevin Martin said yesterday that there was precedent to block a merger between the two companies.
Martin told reporters that “There’s a prohibition on one entity owning both of those licenses,” following a monthly FCC meeting according to Reuters and the AP.
The news sent stocks of XM and Sirius falling 9 percent and 7 percent respectively.
Other analysts, however, said that XM and Sirius could ask the FCC to modify their licenses to permit a merger, said the reports.
XM said it had no comment on the FCC issue and Sirius has not yet responded to TWICE inquiries.