That’s the basic thought that is being floated around on Seeking Alpha today. The essentially comes to the conclusion that the delay in reaching a decision on the merger between Sirius Satellite Radio Inc. and XM Satellite Radio is a result of “the FCC’s determination to establish its authority.”
It’s an interesting theory, though I’m not so sure that the rest of the article gives it much validity (it’s filled with obvious statements). Here’s the basic gist of it:
“…this publication continues to
perceive this merger as arguably the defining moment for the current and future
FCC. Any approval that fails to enforce the FCC’s authority via
significant conditions beyond those proposed by the companies will effectively
result in the FCC being labeled a ‘rubber stamp’ regulator for years
to come — at least with respect to major license transfers.”
In other words - from a 50,000 foot view - the FCC is hemming and hawing over this merger in a way to as to impose a sense of its authority.
Ultimately, M&A Research (the author of the article, who has historically been uber-conservative in their predictions over this deal), feels the FCC “will impose conditions which will force the companies
to either submit to unwillingly or to reconsidering the combination altogether.”
I don’t know exactly how correct it is - but it’s a curious thought to entertain. What’s your opinion? Why do you think the FCC is taking so long?
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