On 19th September, 2023, the Secretariat of the Commission received a merger application concerning a proposed acquisition XM Radio Station Limited, a start-up radio station, by Zodiak Radio Station Limited.
CFTC conducted investigations to assess the merger. The investigations revealed that:
- The radio broadcasting services market is highly competitive
- The merger would result in a minimal market share increase in an already highly concentrated market
- After the merger, the parties’ combined market share would remain the same and would not result in the creation of a dominant player.
- The barriers to entry into the radio broadcasting services market, include high capital investments, business license and the need for technical expertise.
- The transaction would put XM Radio Station’s license to use.
- XM Radio had no employees.
The Commission considered the merger and was of the view that the transaction would not raise competition concerns, and since XM Radio had no employees, the transaction would likely not raise any concerns about job losses.
Upon deliberations, the Commission:
- Authorized the acquisition of XM Radio Station Limited by Zodiak Radio Station Limited.
- Advised the Secretariat to regularly monitor the radio broadcasting services market to ensure that Zodiak Radio Station Limited does not abuse its enhanced position post-merger.