In a recent Wall Street Confidential, Jim Cramer suggested that in order to get things moving in the Sirius-XM merger, the companies need to “go nuclear.”
What he’s referring to by going “nuclear” is that either Sirius or XM (or both?) need to resort to a failing-company argument - something that they have not done thus far.
“I think that it’s time,” said Cramer. “It’s time for these two companies to go nuclear, and just say ‘Look, one of us is going to go out of business, and you’ll have no choice, whatsoever.’”
The FCC mandate was to maintain that there was at least two satellite radio companies, but if either Sirius or XM (and Cramer is suggesting it be XM) use the failing-company argument, then the Commission will be forced to finally act.
“If I wanted to make this so that one of them went out business and the deal failed - I would just keep postponing the decision,” added Cramer. “They don’t have much longer to go.”
Watch the video below…
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