Sirius (SIRI) and XM Satellite Radio (XMSR) both desperately need the government to approve their proposed merger. Will it?
Maybe not, says Pacific Crest analyst Erik Olbeter in a research note today, summarized by Barron’s editor Eric Savitz. Government approval now appears “less likely,” Olbeter said. With 13 months passed since the merger was announced, prospects “have become increasingly cloudy.” Savitz:
Olbeter says the long delay in approval “suggests that the FCC and Department of Justice are having a hard time justifying the deal.” Olbeter says he hears both agencies “are inclined to approve the merger,” but that “an argument for the deal that does not set a significant, far-reaching precedent appears elusive.”
Investors aren’t buying it: XMSR is up 0.44% this morning, trading around $11.35, and SIRI is up 1%, trading around $2.83.
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