XM-Sirius Merger: Anxiously waiting for a decision
Friday, January 4, 2008 at 12:49 PM
Tags: DOJ, Merger, Satellite Radio, Sirius, XM
Despite hopes that an antitrust decision would be reached before the end of the year, the DOJ has spent nearly 10 months so far in its review process over the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.
The delay may be due to the complexity of the issue or because the Department of Justice is putting together a case to block the deal in federal court, analysts at Stifel Nicolaus said in a research note on Thursday.
Conversely, top officials at DOJ may be leaning toward approval but might still be weighing arguments from staffers who oppose the deal, Stifel Nicolaus said.
"Like many others, we believed it was likely that the DOJ would have reached a decision before the winter holidays," Stifel Nicolaus said.
"It certainly wasn't as imminent as (some) projected," Washington, D.C., antitrust lawyer Andre Barlow, of the firm Doyle, Barlow & Mazard told Reuters. Adding that some analysts may have underestimated the complexity of the investigation.
But Bear Stearns analyst Robert Peck - of whom Barlow is likely referring to (or maybe he meant RBC's David Bank? Either way, he's pointing fingers) - still believes the merger will go through, even though we have pass the 2007 milestone. Peck highlights the increased attention that HD Radio has been getting, particularly with the ramped up HD Radio-iPod efforts, as well as HD Radio's available across almost all 2008 Ford vehicles.
"Given the increasingly competitive landscape for satellite radio, as well as limited traction at retail, we believe the DOJ likely will allow the merger to go through," wrote Peck.
When Reuters inquired about the ongoing review process, Sirius and XM issued this joint statement:
"As the companies said from the outset, we expected to complete the processes at DOJ and the FCC so that the regulators could make their decisions and the merger could close by the end of 2007. We have fully complied with the requests from both agencies. The ball is now in their court and we look forward to their determinations."
Don't we all.
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Comments
i think that since this has not happened by now or at least moved forward it probably won't happen at all kinda of a shame but could make both companies really step it up.
Posted by: plum | January 4, 2008 1:37 PM
Maybe it is better that satrad would not be allowed to merger - at least, this would keep iBiquity from having any chance of getting into interoperable satrad receivers.
Posted by: PocketRadio | January 4, 2008 1:50 PM
The fact that we’ve heard nothing at this point does not bode well for the merger passing. If they were inclined to let it go forward, they would have approved it by now.
As was stated, I think the DOJ is bracing for a court fight. I believe their intention is to deny the merger, and they know Mel is going to take them to court. So they’re getting all their legal ducks in a row.
Then, the DOJ will deny the merger, and the protracted court fight begins. At that point, XM would be wise to bail. Fighting the DOJ, an entity with unlimited legal resources is not a smart business move.
If Mel is willing to fight, that must mean Sirius is doomed without the merger. If Mel does take the fight to Federal court, the costs alone will further bury Sirius.
Posted by: Forum Goon | January 4, 2008 1:54 PM
I for one want the merger to go down. I think it's the only chance XM fans have of getting rid of the FM hacks that have runied everything they've touched at XM--
Jon Zellner and Steve Kingston need to leave XM. Their old FM ideas have had little or no impact, and the programming quality has really suffered--morphing into an FM clone instead of the radio nirvana that we used to have. As soon as these guys arrived, XM lost its religion, and basically reverted back to old FM ideas.
Guess what, the masses don't want to pay for commercial free FM.
Posted by: Anonymous Coward | January 4, 2008 1:54 PM
But coward, the masses DO want to pay for commercial free FM. How else do you figure Sirius was able to get 8.3 million people to sign on to their crappy service?
Posted by: Tim | January 4, 2008 2:01 PM
I'd like some kind of resolution out of this so I can decide if I'm going to get a new radio now or wait for a hybrid one later this year. I need a new radio pretty badly, but I'm afraid if I get one they'll just announce the merger is approved and I'll be SOL.
Posted by: Gudlyf | January 4, 2008 2:11 PM
I think saying just because the merger is delayed means the deal doesn't go thru...is JUST as bad as those that predicted the merger was IMMINENT last month.
Both kind of predictions on either side serve no purpose other than to give everyone involved a headache.
I'm invested in Sirius. I think and I HOPE the merger goes thru. Not only as an investor obviously, but as a consumer.
That being said. I'm done with ANY and ALL rumors, predictions and speculations on WHEN or IF it will be approved.
It'll be announced when THEY announce it. End of story. :-)
Posted by: regan | January 4, 2008 2:22 PM
Oh good, more speculation about the mer
zzzzzzzzzzzzzzzzzzzzz,
Did some one fart?
Posted by: teeheejimmy | January 4, 2008 2:39 PM
XM has made severance deals or moved people out of positions for this deal. They will have to play catch up if the deal does not go through. I think that Sirius has shown that they have growth and content. I think XM content has become a litle boring. They have so much to loose with out the merger. Both do. Both have problms with sattelites that will require a new set sent up in next 5 years. The savings of only having to send one set is worth the merger alone. Sirius has the best chance of living after if the merger dies. I still hold out hope that the merger will go through. I own stock in both companies. I have been waiting but if it does not go through I will switch to Sirius for me satrad needs.
Posted by: XM Owner | January 4, 2008 3:28 PM
isn't this a repeat post? you just trying to stir us up again?
Posted by: satellite chick | January 4, 2008 3:50 PM
I'd like some kind of resolution out of this so I can decide if I'm going to get a new radio now or wait for a hybrid one later this year. I need a new radio pretty badly, but I'm afraid if I get one they'll just announce the merger is approved and I'll be SOL.
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Everything points to you having the radio now. Only thing is they have not turned it on for both services. Everybody should call the other service and ask to be turned on. Then when they admit the radios have been in the market you have something to tack them to court.
Posted by: John | January 4, 2008 3:54 PM
zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
Posted by: MikeP | January 5, 2008 7:58 AM
Been a sirus sub since Howard Stern came on board and the show has never been better. The hold up is because of him someone has a ax to grind. It's a crime that two companies who offer entertainment and individuals choose to pay for can't get a merger approved. XM has nothing I want to listen to but I know both companies need the other to stop the bleeding of cash.
Posted by: kickboxer3dan | January 11, 2008 8:28 PM