Merger Deal Continues
“XM Satellite Radio (Nasdaq: XMSR) and SIRIUS Satellite Radio (Nasdaq: SIRI) today announced that the companies have agreed not to exercise their rights to terminate the Merger Agreement prior to May 15, 2008. SIRIUS and XM also announced that they have agreed to further extend the merger agreement, as necessary, for rolling two week periods unless either side notifies the other of its intention not to extend.”
We may not see an announcement regarding the continuation of the deal at all since the extensions are automatic. This means that the status of the deal is still in the “ON” mode through May 29, 2008. At that point, either company could walk away from the deal without penalty ($175 million), however, with DOJ approval, and the FCC having seen about all of the information possible, it is unlikely that either party will walk away.
Thus, while the political tensions play themselves out at the FCC, investors have a fresh new two week window to be excited or frustrated about.
This issue may cause some confusion, but the terms of the rolling extension are quite clear. The next date to mark on your calendar is May 29th.
Position – Long Sirius, XM.
The FCC stands to loose Satellite broadcasting as a whole if they don’t make this merger work and they need to make it work in a way that will keep Satellite radio alive and profitable for years to come.
Don’t give up on this deal yet as the FCC knows that not approving the merger is even more politically dangerous then approving it.
And approve it they will, with conditions that SIRI can work with to make this a viable profitable long lasting business.
And the stock will go to $8!
In my opinion, Sirius/XM needs to TRUMPET each and every renewal with a public statement by Mel and Gary with regards to their “disappointment” with the review process to date.
I thought the opinion of the rolling 2 week renewals was a method of getting their name in the press every 2 weeks to give a wakeup call to the FCC. They definately need to press this.
I agree. The “leaders” of XM and Sirius need to start showing some leadership. They should take their views to the public and get more public opinion on thier side. Whatever someone thinks about the merits of the merger, they can’t agree that the hold-up is appropriate. Public opinion is powerful. Just ask Maximus Meridius.
Jon
I agree. Mel is a master promoter. And there is no doubt in my mind, that he has all sorts of great things planned once the merger is approved.
And I KNOW he doesn’t want to “rock” the boat until the deal is done….
BUT….he really should make a BIG deal every 2 week renewal about how the delay is getting ridiculous.
In reality this ain’t gonna happen. Perhaps wishing thinking on part of us long suffering longs. But we NEED to VENT off some frustration! We have all vicariously lived thru Jim Cramer when he rants against the delay on his show Mad Money. But even Jim Cramer can’t keep that up forever.
We need some sort of decision. ANY decision….and SOON!
and mabye if we pray really really hard
a decision will be made