Federal Communications Commission Chairman Kevin Martin on Tuesday reiterated that he believed the agency could still complete its review of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.'s $13 billion merger before the end of the first quarter. However, Wall Street is skeptical about the deal.
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Despite Martin's comments to reporters, FCC sources argue that finishing the review by the end of March would be almost impossible to achieve because Martin hasn't circulated the order to other commissioners, who would need at least three weeks to review it. He reiterated some of the main issues the agency is grappling with, including whether XM and Sirius fit within a broader marketplace.
Meanwhile, Jim Cramer, CNBC's answer to Howard Beale, continued Tuesday his campaign to convince Washington to approve the merger. While Cramer may remain hopeful that the deal will close -- with his help of course -- others on Wall Street are already resigned it likely won't close.
Standard & Poor's Ratings Services late Tuesday chimed in on the deal when it lowered XM's credit watch status to developing from positive. The change was made in light of the deal's cloudy regulatory situation, and its poor prospects as a standalone company.
Additionally, Pacific Crest Washington analyst Erik Olbeter issued an analyst note that raises doubts that the deal will receive clearance at all, notes Barron's Tech Trader Daily blog.
On Friday, the two satellite radio broadcasters agreed to extend their merger agreement in light of the ongoing regulatory approval process. - Ron Orol and Matthew Wurtzel
See story about credit rating change from Thomson's via Forbes.com
See summation and video of Cramer's points from CNBC's Mad Cap Recap blog
See story from Barron's Tech Trader Daily blog
See earlier stories from TheDeal.com blogs archives
Comments
It is really a great injustice to the American people that this merger hasn't been denied or approved yet.