XM acquisition of WCS fails, hurts XM's video chances
Bad news for anyone banking on video content from XM any time soon: XM's deal to acquire WCS has been terminated due to an inability to gain government approval for the purchase. The plan, which the companies agreed upon in July of last year, had XM buying WCS for around $200 million, in order to acquire the meaty spectrum WCS holds in the 2.3GHz band. After waiting around for nearly a year, the two companies have called it off so that WCS can search for another suitor. XM, who has adjacent spectrum, was reportedly hoping to use the WCS to start offering video and data services, but they claim they do have a way to provide such things even without WCS. The friendly NAB folks have been the loudest detractors from the merger, scared of the extra competition from XM, and claiming XM's localisation efforts violate its FCC licenses. Luckily, it doesn't seem XM has given up on expanded services yet, so sit tight and keep on Photoshoppin' those video players.
