Lucas Binder of UBS issued a report today on the DOJ approval of the Sirius and XM merger.

REPORT EXCERPTS

SIRI-XMSR Merger Approved by DOJ Merger approved by the Department of Justice

Today the DOJ approved the SIRI-XMSR merger. The DOJ concluded that the acquisition would not harm competition. The DOJ found that while SIRI and XMSR compete for customers, there is little competition for consumers who have already subscribed to one of the services. The original merger was announced on February 19, 2007. The agreement calls for 4.6 shares of SIRI for each share of XMSR. Based on SIRI’s price of $3.16, it implies a price for XMSR of $14.54(4.7% spread).

The combination still needs approval from the FCC

The next step in the process is for the FCC to make its own decision. We believe that the FCC was waiting for the DOJ to make an announcement before giving its ruling. We believe the FCC will likely approve the merger early in 2Q08.

Tyler Savery Position - Long Sirius, Long XM