The merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. could likely see approval from the FCC within 2-4 weeks, says analyst Robert Peck at Bear Stearns.
Additionally, Peck says that investors may be too concerned over spectrum divestiture.
"One of the concerns is that the FCC may ask Sirius/XM to divest one set of spectrum," writes Peck in a client note this morning. "However, given this will result in significant dislocation for millions of existing [subscribers], and limited possibility of another potential satellite radio play, we do not think spectrum divestiture is likely."
"We believe FCC approval is likely over the next 2-4 weeks and conditions could include providing limited carriage to other content providers, a la carte, as well as pricing caps for a specified period of time."
Peck noted that the FCC is meeting on April 10th, but satellite radio is not on the agenda.