During the past week Sirius Satellite Radio Inc (Nasdaq: SIRI) and XM Satellite Radio (Nasdaq: XMSR) stocks have both gained ground over recent optimism in their merger. One Citigroup analyst, Eileen Furukawa, has even stated that the merger prospects are likely to be about 69% by December 5th. Meanwhile, both stocks have been priced at much lower probabilities of the merger occuring. Some have said that the Sirius stock has a 41% chance of merger built into the price while the XM stock has a 29% chance of the merger occuring built in the price. Because of this, this analyst continues to put both companies as a “buy” and only time will tell whether they are right.
With the recent supporters of the merger from Members of Congress, consumer advocates, and Kia Motors all voicing that they are in favor of the merger I believe the FCC will do the right thing and allow the merger to take place. The reason why I really like the merger is for the possibility of getting the benefits from both services. I would really like to listen to the NHL broadcasts but that requires XM but I don’t want to leave behind all the benefits of Sirius.