Latest Rumor: Sat Merger To Be OK'd After Trade-off
March 20, 2008 at 4:25 PM (PT)
STIFEL NICOLAUS analyst BLAIR LEVIN predicts that the XM-SIRIUS merger is nearing consummation, awaiting a trade-off of bandwidth space to independent programmers, BARRONS reports. "There are further signs that the DOJ review of the proposed XM-SIRIUS merger is getting close to completion." he wrote. "The FCC rumblings bolster our sense that the DOJ will likely clear the deal followed by FCC approval with conditions."
LEVIN believes the key to a consensus approval would be the merged satcaster agreeing to lease some of its capacity to independent programmers. "We think the critical FCC question is whether the two Democrats [on the FCC], both of whom have expressed concerns about the merger, could be persuaded to vote for the deal if a leased-access condition were included," he wrote.
Predictably, the stock prices of both XM and SIRIUS rose.