Clock Ticks Slowly for XM, Sirius
After an unprecedented 78-day delay, the Federal Communications Commission on Friday started to accept comments on a tie-up between the nation's only two satellite-radio players. The move starts a 180-day clock for the FCC to review the implications of the deal, putting the earliest potential regulatory decision date at Dec. 4.
Sirius and XM shares rose 2% Monday on news that the stalled merger has finally moved toward a review. Both companies have seen their stock fall 28% since plans for a merger were announced in February.
The delays to date have been due to heavy opposition lobby from the National Association of Broadcasters and steep legal hurdles. And though the FCC's clock has started ticking, observers say the review process typically involves a few time-outs."Assuming at least one stoppage does occur, the FCC decision will necessarily slip into the first quarter of next year," says David Trout of M&A Researcher. The FCC has to determine that the merger will be good for consumers. As written, the original dual satellite-radio licenses prohibit sole ownership and were specifically designed to foster head-to-head competition. In order for the FCC to rewrite those rules, it has to be convinced that prices and programming selection won't be negatively affected.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV