Positive FCC Report Sends Sirius and XM Up
Last week at a media conference hosted by Bear Stearns, Sirius CEO Mel Karmazin indicated that Sirius and XM have not had much activity with the DOJ for some time, and that they have had a lot of interaction with the FCC. One possible situation is that the decision from the DOJ is already known to the FCC, and that the DOJ is coordinating with the FCC on an announcement.
Should the merger be approved, there will likely be stipulations placed upon the deal, and that any DOJ approval will also be based on the stipulations outlined in part by the FCC. This would align the two regulators on a uniform position prior to a merger decision announcement. Such activity has happened recently.
STIFEL NOTE EXCERPTS
XM-SIRIUS: THE BUZZ GETS LOUDER. There are further signs that the DOJ review of the proposed XM-Sirius merger is getting close to completion — stemming mostly from a flurry of activity at the FCC. We understand the FCC staff is drafting a document that would approve the deal, though we note that such activity is also an uncertain indicator of the DOJ outcome. Nonetheless, the FCC rumblings bolster our sense that the DOJ will likely clear the deal followed by FCC approval with conditions. In addition to other conditions we’ve previously discussed, the FCC could require some kind of leased-access offering, in which XM-Sirius makes available a certain percentage of its capacity for independent programmers. We think the critical FCC question is whether the two Democrats, both of whom have expressed concerns about the merger, could be persuaded to vote for the deal if a leased-access condition were included.
Additional excerpts from the report are available to members on the Sirius Buzz Forums
Tyler Savery Position – Long Sirius, Long XM
Music to my ears! I have been long for sooooo long. My ears are perked!
Sell gold and buy SIRI? Why not.
Senator Spector is usually near the eye of the hurricane. Sounds to me like concern in high places is growing over the ridiculous delay.
Translation: WE’RE THERE!
I don’t own any March SIRI call options, but for those who own the 400K or so that will expire today, this will be just a little too late.
who cares if the 2 Democrats approve the merger or not. As long as the 3 Republicans approve we are fine.
If sirius and xm offer some spectrum their promise to keep their service today as it is also availiable to subscribers after the merger can not be kept.
true about the spectrum—ill believe this when i see it as i think we are going to be surprised—in a bad way as the merger is approved with conditions that cant be accepted