XM/Sirius and Liberty/DIRECTV: Still Waiting …

XM/Sirius and Liberty/DIRECTV: Still Waiting …

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XM/Sirius and Liberty/DIRECTV: Still Waiting …
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How much longer will satellite industry observers wait until regulators approve two key merger and acquisition deals?

The Federal Communications Commission and antitrust staffers at the Justice Department apparently are still working on the two blockbuster transactions: Liberty Media's takeover of a controlling stake in DIRECTV from News Corp. and the pending merger between XM and Sirius.

The Liberty/DIRECTV deal is in its 286th day for consideration at the commission while the XM/Sirius combination is entering its 179th day. At press time, there was talk the XM/Sirius deal could win DOJ approval any day now.

In a note released last week, the Washington, D.C., office of Stifel Nicolaus said Liberty Media's takeover of DIRECTV would likely win clearance with some conditions pertaining to program access and retransmission consent items.

Also, the firm said the FCC may tie a condition to businesses the companies conduct in Puerto Rico: Liberty controls a cable operation on the island while DIRECTV serves the commonwealth via its Latin America platform.

As for XM and Sirius, Stifel Nicolaus said that deal is "a close call, and could be a roller-coaster at the end." But the firm said it "appears slightly more likely" that the Justice Department will clear the proposed combination of satellite radio services. That would be followed by FCC approval with conditions, Stifel Nicolaus said.

Observers have said both transactions should see regulatory action before the end of the year.

News Corp. formally proposed swapping a stake Liberty Media has in Rupert Murdoch's media company with DIRECTV on Dec. 22 last year. News Corp. acquired the controlling stake in the satellite TV company in 2004.

XM and Sirius announced their intentions to merge operations on Feb. 19.