Wis. AG Wants to Block Satellite Merger

Wisconsin Attorney General J.B. Van Hollen wants federal regulators to block a deal to join the nation's only two satellite radio companies.

The U.S. Justice Department decided earlier this month to permit Sirius Satellite Radio Inc.'s proposed $5 billion buyout of rival XM Satellite Radio Holdings Inc. The Federal Communications Commission still has to sign off on the deal.

Van Hollen, a Republican, sent a letter to FCC Chairman Kevin Martin and Wisconsin's congressional delegation on Monday complaining the deal would eliminate competition in the satellite radio industry, drive up prices for services and reduce channels available to Wisconsin listeners.

"Broadcast radio is no substitute for satellite radio," Van Hollen wrote in the letter.

Sirius wants to buy XM for about $5 billion.

Van Hollen sent a letter to antitrust regulators in the U.S. Justice Department in September making the same arguments. But the agency approved the deal on March 24 with no conditions attached.

The Justice Department said the two companies didn't compete against each other because subscribers had to purchase equipment exclusive to either XM or Sirius and ample competition exists in other audio entertainment forms, including iPods, high-definition radio and Internet radio _ a key argument the companies have used to push the deal.

THE FCC has the authority to block the sale or impose conditions on pricing or program offerings.

Eleven other state attorney generals sent a letter to the FCC's Martin in March expressing concerns about the Justice Department's decision and urging the FCC to address anticompetitive aspects of the buyout.

FCC spokeswoman Mary Diamond declined to comment. Sirius and XM officials didn't immediately return messages Thursday.