Now that Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. have approval from the Justice Department, let's check in on the investment analysts' take on the road ahead...

• Benjamin Swinburne, Morgan Stanley:
  Following closing of the merger, both Sirius and XM "should benefit from some lift in demand from combined programming offerings." But a critical factor, from an investor's standpoint, will be the ability to renegotiate large OEM and programming contracts, in addition to creating new demand and increasing conversions.
  
  "The challenges facing the industry, however, will not go away as a result of the merger," writes Swinburne. Now the focus shifts to free cash-flow.
  
  
• Jeff Wlodarczak, Wachovia Capital Markets:
  "With the DOJ decision now out of the way, FCC approval would appear to be a foregone conclusion," writes Wlodarczak in a recent note, noting that there are likely to be conditions placed by the Commission.
  
  Wachovia doubts the merger will "materially reignite demand" for satellite radio, but "realistically as a combined entity they have a much greater chance for long-term survival," in their view.
  
  
• David Bank, RBC Capital Markets:
  RBC continues to "remain on the sidelines" from an investor's view, noting that "any 'bounce' from potential completion of the merger may largely factored into current valuation."
  
  But what of the FCC? Bank notes that the FCC tends to "follow in the DOJ's footsteps" so they're more confident in final approval.
  
  "In terms of timing, it's difficult to know, but some time in the next 2 weeks to 8 weeks would seem realistic given chatter we are hearing from our Industry sources," write the RBC analyst. The question now is the conditions that the FCC will impose.
  
  
• Blair Levin, Stifel Nicolaus:
  Aside from what was already posted, Stifel Nicolaus notes that there has been some significant negotiations regarding conditions at the FCC. And that there's one wildcard still out there: The NAB.
  
  "If the FCC clears the deal, it's possible the NAB could challenge the FCC decision in court," writes Levin. "But we would expect the broadcasters' legal prospects to be uphill."

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.

[Barrons]