Company News: Sirius says acquisition of XM will lower prices
Sirius Satellite Radio Inc. is promising more programming choices and lower pricing options as part of an effort to convince federal regulators to approve its proposed acquisition of rival XM Satellite Radio Holdings Inc.
The deal still faces opposition from several consumer groups, however, and what’s certain to be a tough regulatory review in Washington by antitrust authorities and the Federal Communications Commission.
In an application submitted to the FCC on Tuesday and disclosed in a regulatory filing on Wednesday, Sirius said that the combined company would allow subscribers greater flexibility in choosing programming options, including a lower price if they elect to receive fewer channels.
Customers of both Sirius and XM already can block out adult-themed channels such as Playboy, adult humor and urban music, but they don’t receive any discount for doing so.
In their filing with the FCC, the companies said that customers could elect to receive fewer channels for a rate lower than the current monthly fee of $12.95 offered by both companies.
“Morgan Stanley Inc. on Wednesday won a reversal of a $1.58 billion verdict handed to billionaire Ron Perelman for misleading him in a deal to sell Coleman Co. to Sunbeam Corp.
The Florida Court of Appeal in West Palm Beach ruled that the New York-based investment bank was punished unfairly for destroying e-mails involved in the transaction. The latest decision will be appealed in a case that could end up in the Florida Supreme Court.
Perelman, the chairman of cosmetics giant Revlon Inc., accused Morgan Stanley of conspiring with client Sunbeam to mislead him about the company’s financial health. Because of this, he sold camping supplies maker Coleman Co. to Sunbeam in 1998 — months before Sunbeam restated earnings and ahead of its 2001 bankruptcy.
“Business software maker Oracle Corp. has a tough act to follow as it tackles the biggest quarter of its fiscal year.
In the latest sign that an expensive expansion is paying off, Oracle’s profit and new software sales both outstripped analyst expectations during its fiscal third quarter that ended in February.
The company earned $1.03 billion, or 20 cents per share, during the third quarter. That represented a 35 percent increase from net income of $765 million, or 14 cents per share, at the same time last year.