XM/Sirius Merger Takes the Slow Track

Trout -- a Virginia-based merger analyst -- predicts the XM and Sirius deal will receive the same kind of treatment that broadcaster Clear Channel (CCU) has gotten. A year ago, private-equity firms including Thomas H. Lee Partners and Bain Capital offered an $18.7 billion buyout of Clear Channel. Shareholders approved the deal in September, but the regulatory review continues.

The FCC has a 180-day timeframe to complete its merger reviews, but as Trout has pointed out, these clocks aren't reliable.

"The timeclock has never officially stopped" on the Clear Channel transaction, "yet it's approaching a year in length. That's a perfect example of how these things can be drawn out, and just how informal that timeclock really is," says Trout.

For its part, Sirius has promised combined programming packages that offer a range of prices to help smooth criticism from consumers.

The two pay radio shops say they need the merger to save costs as the business slides into a slower growth phase. Last month, both Sirius and XM saw net subscriber growth decline despite better customer retention rates.

Sirius shares rose 9 cents to $3.50 and XM was up 52 cents to $14.25 in midday trading Tuesday.

XM says it expects to have its shareholder voting results available around 4 p.m. EST.

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