XM Satellite Radio cancelled its planned acquisition of WCS Wireless, a private entity that holds extensive wireless spectrum licenses in certain geographic areas throughout the United States. XM Satellite cited an inability to gain government approval for the deal in a timely manner.
In commenting on the termination, Gary Parsons, Chairman of XM, stated, "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."http://www.xmradio.com
- In July 2005, XM Satellite Radio agreed to acquire privately-held WCS Wireless for nearly $200 million in stock.
WCS Wireless holds wireless spectrum licenses in geographic areas covering 163 million people throughout the United States, including 15 of the top 20 metropolitan markets. On average, WCS Wireless licenses include 10 megahertz in the frequency bands adjacent to XM's satellite radio service.
At the time the deal was first announced, XM Satellite said the acquisition would enable it to expand its existing business with a variety of multimedia subscription services, including innovative video and data offerings, transmitted over these new frequencies.
