XM-Sirius Pact Closer to Approval: Report

Federal Communications Commission Chairman Kevin Martin confirmed Thursday that an agreement in principle to approve the merger between Sirius Satellite Radio (SIRI Quote) and XM Satellite Radio (XMSR Quote) has been reached, according to a published report.

Martin said the commissioners are "still trying to work out the language," according to a report in The Wall Street Journal.

Republican commissioner Deborah Taylor Tate cast the third and final vote in favor of the deal a day ago, breaking what was a 2-2 tie, after both satellite companies agreed to several concessions involving enforcement issues. The majority vote in favor of clearing the union would end a 13-month review process.

Finally! FCC Set to Approve XM-Sirius Deal

In addition to Tate and Martin, commissioner Robert McDowell also offered support for the transaction. Commissioners Jonathan Adelstein and Michael Copps voted against allowing the deal to go through.

Shares of XM jumped 8.2% to $10.87, and increase of nearly 30% over the previous week. Sirius was higher by about 1% to $2.70.

The report came as XM and Sirius said they are in talks with the FCC's enforcement division in hopes of entering into a consent decree, what would likely be the final step in the FCC's process. XM and Sirius said they expect to agree to adopt comprehensive compliance plans, which includes taking steps to address any non-compliant receivers that consumers may currently own.

XM will also make a voluntary contribution of $17 million to the U.S. Treasury, and Sirius is expected to donate approximately $2 million. Both XM and Sirius must also shut down a number of terrestrial repeaters, which work with satellite signals to provide a stronger transmission network.