FCC official voices doubts on Tribune and Sirius deals

By Peter Kaplan

WASHINGTON (Reuters) - A Federal Communications Commission official on Thursday expressed skepticism about whether he would endorse Sirius Satellite Radio Inc.'s proposed acquisition of XM Satellite Radio Holdings Inc or renew regulatory waivers sought for the leveraged buyout of Tribune Co.

FCC Commissioner Michael Copps, one of two Democrats on the five-member commission, said it would be a "steep climb" for him to cast a favorable vote on either deal because he has serious concerns about consolidation in the U.S. media.

"Somebody's going to have to make a pretty powerful and potent demonstration that it serves the public interest," Copps said, referring to the XM-Sirius deal.

"The parts of the (public) record that I've looked at so far have not shown me that (the deal) serves the public interest," Copps told reporters at a briefing.

Sirius plans to buy XM in an all-stock deal worth about $4 billion. The transaction would combine the only two providers of satellite radio service in the United States and has sparked concerns among some U.S. lawmakers and consumer groups.

The deal is being reviewed by both the Justice Department and the FCC.

Sirius and XM have argued that the deal would not hurt consumers because satellite radio faces competition from other forms of audio like traditional AM-FM radio and personal audio players.

Copps declined to comment on how he will vote.