XM, Sirius Paying $19.7 Million Penalty In Quest To Complete Merger

Washington, DC (AHN) - XM Satellite Radio and Sirius Satellite on Thursday agreed to pay a $19.7 million penalty to settle an alleged Federal Communications Commission violation, thus moving the two companies closer to a merger approval.

According to the Associated Press, FCC Chairman Kevin Martin said the agency reached an agreement where XM Radio would pay a $17.5 million fine and Sirius Satellite would pay $2.2 million to resolve the complaint.

The complaint regarded alleged interference satellite radio caused with land-based radio. Violations occurred with the satellite companies use of land-based signal repeaters used to deliver programming.

"This was an issue that Commissioner Tate thought was important for us to deal with prior to her supporting the merger," Martin said of the consent decree, according to Associated Press. "I think that this was a significant issue that we can take off the table that I think will allow us to move forward soon on finishing up the merger," he added.

The possible merger between XM Radio and Sirius Satellite has been under regulatory review for more than a year now.

Shares of XM Satellite Radio and Sirius Satellite fell more than 3 percent on Thursday.