Wednesday, October 11, 2006

More XM SIRI Merger Talk

vvcbOctober 11, 2006

Ask 10 people that follow this sector about a merger between Sirius and XM and you will garner 10 differing opinions. Even here at SSG we vary in opinion as to the potential of it happening.

George Reed-Dellinger of Washington Analysis is a well respected in his field about predicting the likelihood of legislation passage and government approval. The list of clients of Washington Analysis is impressive to say the least. They do so well in this sector because they tend to be pretty darn accurate.

So what does George Reed-Dellinger have to say about the potential of a Sirius and XM hook-up?????

In a report issued yesterday, he stated, "In the wake of recent comments by FCC Chairman Kevin Martin that may have implied he would block a deal between Sirius and XM, we reiterate our belief that such a combination can gain government approval."

The report goes on to list the factors that could lead to such approval, and even lists aspects which would make at SIRI/XM merger more likely than a Direct TV/Dish deal.

So, can these companies merge? Will they consider it? Who really knows. What we do know is that a very well respected Washington consultant feels that the government hurdle can be eclipsed.

10/11/2006 03:19:00 PM

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