By now you have already seen the Department of Justice approval of the merger between Sirius Satellite Radio (NASDAQ: SIRI) and XM Satellite Radio (NASDAQ: XMSR). Jim Cramer came on CNBC’s MAD MONEY tonight to praise the DOJ for approving a non-monopolistic merger that will actually help consumers. But he is also encouraging consumers to call into the Federal Communications Commission to pressure them to not block the merger of the two satellite radio players.
Cramer noted that while many believe the FCC will easily follow suit, he is worried that the FCC is a larger hurdle to the deal than many think. We have covered this merger many times in our own open email distribution list for our readers. We even went as far as interviewing Representative Gene Green ourselves to hear his side of the story as to why he is vehemently against this merger. We don’t agree with the logic to block the merger, but we still wanted to see both sides of the story.
Cramer said he thinks that Sirius will go to $5.00. Shares closed up 8.6% at $3.15 today in normal trading, and shares are up almost 4% to $3.27 in after-hours. XM shares closed up over 15% at $13.79 in regular trading, and shares are up 2.5% at $14.14 in after-hours trading.
Jon C. Ogg
March 24, 2008
Jon Ogg produces the Special Situation Investing Newsletter and can be reached at email@example.com; he does not own securities in the companies he covers.