DOJ decision paves way for more satellite mergers
Monday, March 31, 2008 at 8:47 AM

Last week's decision by the Department of Justice may have a domino effect for other major satellite players in the coming year, says GigaOM.
They point to satellite operators including Iridium, Globalstar, ICO Global Communications, TerreStar Corp. and Mobile Satellite Venture which are all trying to operate or build out networks. But with a shortage of spectrum for some, these may choose to follow Sirius-XM's lead, and join forces.
Given the spectrum owned and the types of satellites launched, Tim Farrar of TMF Associates feels that the likeliest deals would be between ICO and TerreStar; Inmarsat and MSV; and Globalstar and Iridium.
Does the Sirius-XM deal set off an opportunity for other satellite mergers in 2008? I'm less inclined to think so.
Simply by observing the length of time it took the DOJ analyze the situation, combined with the upcoming possible political shift in power, and you'll realize that Sirius-XM came in just under the wire with this decision. If a less M&A-friendly Democratic administration is elected to office, these types conditionless satellite mergers would likely be put on hold for the near future.
[GigaOM]

Last week's decision by the Department of Justice may have a domino effect for other major satellite players in the coming year, says GigaOM.
They point to satellite operators including Iridium, Globalstar, ICO Global Communications, TerreStar Corp. and Mobile Satellite Venture which are all trying to operate or build out networks. But with a shortage of spectrum for some, these may choose to follow Sirius-XM's lead, and join forces.
Given the spectrum owned and the types of satellites launched, Tim Farrar of TMF Associates feels that the likeliest deals would be between ICO and TerreStar; Inmarsat and MSV; and Globalstar and Iridium.
Does the Sirius-XM deal set off an opportunity for other satellite mergers in 2008? I'm less inclined to think so.
Simply by observing the length of time it took the DOJ analyze the situation, combined with the upcoming possible political shift in power, and you'll realize that Sirius-XM came in just under the wire with this decision. If a less M&A-friendly Democratic administration is elected to office, these types conditionless satellite mergers would likely be put on hold for the near future.
[GigaOM]





