Wednesday, February 28, 2007

Merger Talk: BusinessWeek Says Concessions Might Boost Their Case

New Conditions May Ease XM-Sirius Merger
As the satellite-radio providers seek Congress' approval to wed, competition from iPods—and a few concessions—might boost their case
by Steve Rosenbush , Feb 28, BusinessWeek

The proposed $13.6 billion merger between satellite radio players XM Radio (XMSR) and Sirius Satellite Radio (SIRI) would seem to violate conditions that government regulators placed on the companies years ago (see BusinessWeek.com, 2/21/07, "Satellite Static: The XM-Sirius Merger"). When the Federal Communications Commission granted the radio licenses to the companies in 1997, the commission's decision specified that they couldn't be owned by the same entity.
The companies claim that their merger agreement will nonetheless win approval of the FCC, a view that's supported by many analysts who follow the industry. George Reed-Dellinger of researcher Washington Analysis says the odds of approval are "60% plus."...read more- here