XM-Sirius Deal Advances

Updated from 4:19 p.m. EDT

The Justice Department gave its long-awaited approval to the planned merger between XM Satellite Radio (XMSR Quote) and Sirius (SIRI Quote), potentially paving the way for the deal to be completed before the end of the first quarter.

"After a careful and thorough review of the proposed transaction, [the department's antitrust division] concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers," the Justice Department said in a press release.

Shares of XM surged $1.85, or 15.5%, to close at $13.79, and they were adding another 1.5% in the after-hours session. Sirius jumped 25 cents, or 8.6%, to $3.15 and were up a further 1.6% in late trading. ...