Stifel analyst Blair Levin issued a report today on the DOJ decision to approve the merger.

REPORT EXCERPTS

DOJ Clears XM-Sirius Merger Without Conditions;FCC End Game Next

• The DOJ has announced it will not move to block the proposed satellite radio merger of XM (XMSR) andSirius (SIRI), and it did not impose any conditions.

• Next, the companies need to gain the approval of the Federal Communications Commission, which is reviewing license transfers needed to close the deal.

• We believe the companies will likely be able to win FCC clearance, but we expect the agency will seek and obtain a number of conditions on the merger in a process that could still take a number of weeks.

The Department of Justice has announced that it has closed its review the proposed satellite radio merger of XM and Sirius, and without imposing any conditions. This is consistent with our bottom-line expectations when the deal was first announced. (Please see our prior notes on February 20, 2007, "XM-Sirius Review: Government Approval Close Call But More Likely Than Not," and our March 20, 2008 Washington Telecom, Media & Tech Insider, "XM-Sirius Buzz Growing as FCC Staff Activity Picks Up, Seems to Suggest Likely Approval; DOJ Remains Key.")

The report outlines several possible FCC concessions that may be considered, and potential political strategies that may be utilized to gain additional concessions or prolong the vote.

Tyler Savery Position - Long Sirius, Long XM