XM Satellite to Acquire WCS For $195 Million; Eyes Video Service

XM is eyeing the local market and is sure to run into fierce opposition here: it has bought out WCS Wireless and its portfolio of wireless spectrum licenses for 5.5 million common shares, which comes to about $196 million.

WSJ (sub. req.): The acquisition allows XM to expand its local data offerings such as traffic services, launch a video service, or add additional satellite-radio stations targeted to certain markets. The move likely will anger terrestrial broadcasters who believe satellite radio should be restricted to national, not local, programming.

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