The merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. could likely see approval from the
FCC within 2-4 weeks, says analyst Robert Peck at Bear Stearns.
Additionally, Peck says that investors may be too concerned over
spectrum divestiture.
“One of the concerns is that the FCC may ask Sirius/XM to divest one
set of spectrum,” writes Peck in a client note this morning. “However,
given this will result in significant dislocation for millions of
existing [subscribers], and limited possibility of another potential
satellite radio play, we do not think spectrum divestiture is likely.”
“We believe FCC approval is likely over the next 2-4 weeks and
conditions could include providing limited carriage to other content
providers, a la carte, as well as pricing caps for a specified period
of time.”
Peck noted that the FCC is meeting on April 10th, but satellite radio
is not on the agenda.
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