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Cramer on BloggingStocks: Despite FCC Nod, Merger between Sirius and XM is far from complete |
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| Jun 16, 2008 09:00 AM UTC |
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Tracked Blogger
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Via BloggingStocks:
Filed under: Deals, Google (GOOG), Yahoo! (YHOO), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Market matters, CBS Corp 'B' (CBS), Clear Channel Commun (CCU), Stocks to Buy, Cramer on BloggingStocks  Too many parties have too much to lose to let this one go through without a fight, TheStreet.com's Jim Cramer says. No, it is not over. If there is one thing we have learned about Sirius (NASDAQ: SIRI) (Cramer's Take)-XM (NASDAQ: XMSR) (Cramer's Take), it is that at every step of the way, people have to try to block it or at least hold it up to the point that someone goes out of business. This is a deal, now much longer in passing than Exxon and Mobil, that still has congressional meddling even right now, still has rearguard activists who might fight the merger on the commission itself even though the FCC's staff has said yes. Lots of people are confusing the issue of the merger benefits with the merger itself. The benefits will be helpful down the road on both the revenue and the costs, and the caps won't mean that much. What matters, plain and simple, is refinancing. Both companies are always in danger of running out of money. However, if you know that three years hence -- after the frozen period during which service fees cannot be increased -- the two companies can begin to offer extreme cable pricing, you can go hat in hand to the Street with a good bond deal that people will no longer feel could default. Permalink | Email this | Comments <map name="google_ad_map_145-1226501"><area href="http://imageads.googleadservices.com/pagead/imgclick/145-1226501?pos=0" shape="rect" coords="1,2,367,28" /><area href="http://services.google.com/feedback/abg" shape="rect" coords="384,10,453,23" /></map> 
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