XM is surely having a tough month. First RIAA sues them, and now this: It is pulling out of its plan to buy WCS Wireless, citing failure to get government approval. The deal for WCS, which owns wireless spectrum licenses in 15 out of the 20 top metropolitan areas in the U.S., was announced last July. It was planned as a stock deal, worth 5.5 million shares. Both parties expected the deal to close by now.
“With the inability to obtain the necessary government approval for this transaction in a timely manner WCS Wireless needed to pursue alternatives for its spectrum with greater certainty of regulatory approval,” said XM chairman Gary Parsons in a statement.
This acquisition would have allowed XM to expand its local data offerings such as traffic services, launch a video service, or add additional satellite-radio stations targeted to certain markets, and that created unhappiness among broadcaster and also the traditional radio operators.
Related:
-- RIAA Sues XM Over Handheld Player/Recorder
-- XM Satellite to Acquire WCS For $195 Million; Eyes Video Service
-- XM’s Buyout of WCS In Controversy; NAB Opposes