Washington Analysis has released an update on the Sirius and XM merger.

Report Excerpts

"We expect XM (XMSR-$13)-Sirius (SIRI-$3) to gain governmental approval in Q1 2008. Odds of approval are 65% in Q1. À la carte pricing offer likely to gain FCC approval. DOJ likely to conclude that relevant market is broader than the two satellite radio companies. $3-6 billion of potential synergies, which can finance a number of FCC conditions that might be placed on the merger (e.g., à la carte choices)."

Position - Long Sirius, XM