sirius xm logoShareholders of both Sirius and XM satellite radio voted on the proposed merger today. Both sets of shareholders voted to approve the merger. While some assumed that this hurdle was a foregone conclusion, it was nonetheless an important step that needed to happen in order for the merger to proceed.

While the basic question of the vote was in relation to the merger, the votes had very different characteristics. In the case of Sirius, shares that were not voted upon were counted as votes against the merger. In the case of XM, shares that were not voted upon were given to the Board of Directors to vote, in which case became a vote for the merger.

SIRIUS

The requirement was that over 50% of the shares be in favor of the merger. With institutions accounting for a bit over 30% of the shares, the vote relied heavily on retail shareholders. Of those that voted, over 96% were in favor of the merger. A bit over 50% of the shares were actually voted.

XM

The requirement was that over 50% of the shares be in favor of the merger. With institutions accounting for over 80% of the shares, the real decision rested in the hands of about 10 institutions. XM stated that about 99% of the shares were cast in favor of the merger.

THE BOTTOM LINE

Shareholders are in favor of the merger. This leaves the merger in the hands of the Department of Justice and the Federal Communications Commission. Both regulatory agencies have expressed that they are working expeditiously towards issuing a decision.

Position - Long Sirius, Long XM