FCC to Look at Satellite Radio Agreements

The FCC is looking for consultation on whether it should change the rule that currently forbids Sirius and XM from merging, a necessary move if it is to approve the proposed deal.

It does not mean that the merger has any greater likelihood of being approved, and the documents that open up the topic for discussion provide no insight into the Commission's thinking on the topic.

The FCC's move is more likely aimed at ensuring there would be no challenges to the merger if they were to approve it. Changing the agreement would allow for it, and remove any legal doubts about its validity.

Already, the lines are being drawn with most broadcasters and several lawmakers indicating their opposition to the deal. Both companies have recently made efforts to promote groups that support the combination of the nation's only satellite radio operators.

Some minority and religious groups have come out in favor of the merger, saying it allows for the greater dissemination of programming that may otherwise be passed over by traditional radio.

The companies have also repeatedly argued that the entertainment landscape has changed much since the licenses were first approved a decade ago, including the advent of the iPod and other portable entertainment devices.

In a joint statement, both companies said they were glad the FCC had taken the next step towards getting the deal approved. "This action puts all of the FCC decisions regarding approval of the merger on track," the companies said.

Even if the FCC allows the deal, the Justice Department's antitrust regulators still must approve it, meaning the merger is still quite a long way off from being greenlighted.