FCC Vote On Sirius-XM Merger Not On May 14 Agenda: Analysts
Satellite Radio Union Unlikely To Get FCC Approval Until Late May Or June
By Larry Barrett -- Multichannel News, 4/24/2008 2:36:00 PM
The FCC’s expected approval of the much-delayed merger between XM Satellite Radio and Sirius Satellite Radio likely won’t happen until late May or June after chairman Kevin Martin failed to distribute a draft ruling of the regulatory agency's conditional approval to other commissioners Wednesday night, according to equity research firm Stanford Group Company.
In a research note issued Thursday, analysts Clay and Fred Moran wrote that “it seems unlikely that the FCC will vote on the merger on its May 14 meeting. A ruling by late May or early June could occur.”
“We believe the FCC is highly likely to approve the merger with relatively modest conditions,” the research note continued.
The analysts maintain a “hold” recommendation and 12-month price target of $3 a share on Sirius shares, which closed up 8 cents, or 3%, to close at $2.73 a share in Thursday trading.
Exactly one month ago, the U.S. Department of Justice announced it had completed its investigation of the proposed merger—first announced in February 2007—and decided to take no action.
The DOJ concluded that the merger was not anti-competitive, leaving FCC approval as the last significant obstacle standing in the way of the $13.6 billion union.
Both XM and Sirius are home to the audio feeds of several cable networks, including CNN, Fox News Channel and CNBC.
The combined XM/Sirius would have more than 17 million subscribers and would be headed by current Sirius CEO Mel Karmazin. XM Satellite chairman Gary Parsons would retain that title with the new entity.
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This analysis is problematic.
They will hardly put the vote on the agenda.
This can happen anytime. The draft will not wait 20 days on a desk to be voted.
The draft will not be a surprise for the FCC, it is being shaped through discusions with the parties involved. After it is complete the vote will come immediately. JMHO
It can happen today..
Kon Alex - 4/25/2008 2:39:00 AM EDT -
Once again a government agency reveals its lack of ability to efficiently and effectively operate. It has been over a year since this merger was announced. Has "Government of the people, by the people and for the people" vanished from the earth?
There must be more idiots per capita in Washington, than any place on earth.
Ernest Merritt - 4/24/2008 11:41:00 PM EDT -
LAME! WHATS TAKING SO LONG??? THIS IS CRAP! FCC SUCKS!
Mark - 4/24/2008 11:39:00 PM EDT
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