Approval for the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. "now appear less likely" since a decision has been delayed for so long, according to Pacific Crest Washington.
Erik Olbeter, analyst for Pacific Crest, said that "prospects for the merger have become increasingly cloudy" in a research note issued this morning.
Now that we're nearly 13 months into the process, Olbeter says the delay in approval "suggests that the FCC and Department of Justice are having a hard time justifying the deal."
While word has it that both the DOJ and FCC "are inclined to approve the merger," Olbeter says that "an argument for the deal that does not set a significant, far-reaching precedent appears elusive."
Investors don't seem bothered by Olbeter's comments as shares of both SIRI and XMSR edged up during Wednesday trading.