Meanwhile, another observer thinks the DOJ will rule soon on the merger.
RBC Capital Markets believes it’s highly likely the Justice Department will rule within 30 to 60 days on whether XM and Sirius should merge, with FCC decision to follow sometime after that.
Regulatory filings indicate both companies have “substantially” complied with DOJ’s request for more information, it said. RBC analysts believe the deal has a 50% chance of approval at the DOJ and a more than 50% chance by the FCC.
In a client note, RBC states: “Our sources indicate DOJ has reasonable room to rule that XM/SIRI competes in a broader audio entertainment market including MP3 payers, cell phones (and hybrids such as the iPhone) and Internet radio. Additionally, we get the sense that the Executive branch has minimal interest in challenging the merger.”