RBC: DOJ nearly ready to make ruling on XM-Sirius deal
By David B. Wilkerson Last Update: 9:58 AM ET Sep 6, 2007Print Subscribe to RSS Disable Live Quotes
CHICAGO (MarketWatch) -- The U.S. Department of Justice could be ready to make a ruling on Sirius Satellite Radio's proposed acquisition of XM Satellite Radio within the next 30 days, with a more than 50% likelihood of approval, an analyst said Thursday. RBC Capital's David Bank told clients that XM (XMSR:xm satellite radio hldgs inc cl a News, chart, profile, more Last: 13.46+0.21+1.58%
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: XMSR13.46, +0.21, +1.6%) and Sirius (SIRI:sirius satellite radio inc com News, chart, profile, more Last: 3.20+0.06+1.91%
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: SIRI3.20, +0.06, +1.9%) have now substantially complied with Justice's request for additional information on the transaction. He added that regulators could side with the satellite radio companies' contention that their market should be broadly defined to include MP3 players, traditional radio and other media, so as not to constitute a monopoly upon completion of the deal. Bank also remains convinced that the Federal Communications Commission, which must also vote on the proposed transaction, is unlikely to vote in conflict with the DOJ, especially after Sirius and XM pointed out family-friendly tiering plans to keep raunchier content away from children. The companies' plans to offer a la carte choice of channels should also appeal to FCC Chairman Kevin Martin, Bank said, since Martin has pushed cable television operators to make such a choice available.
We have an article reporting FACTS. We have the former FCC chair recommending merger. We have shorts waiting in the wings, prayers have been answered, by telling them, move ober and cover! And the word will get out to the public. Build it and they shall come. A future CORE holding in any portfolio. A new era in entertainment. A classic holding that may assist making you wealthy.