updated 11:45 am EDT, Mon May 12, 2008
XM Sees Sirius Merger Soon
XM expects its proposed merger with Sirius to be approved by the summer, the satellite radio provider said today during a conference call discussing its latest quarterly results. President and chief executive Nate Davis now claims that the winter 2008 quarter is XM's last "as a standalone company" and goes so far as to drop its financial guidance for the upcoming quarter, saying the prediction won't apply to a unified company. Recent government steps to greenlight the deal are signs approval is close, according to Davis.
"The Department of Justice effectively cleared our merger with [Sirius]," he says.
Both satellite networks have shown signs they expect their union to be approved, with an indefinite agreement in place that pledges continued support and an frequent meetings between themselves and interested parties with the Federal Communications Commission, which is the only remaining government body left to approve the deal before it can go ahead.
Such a merger is becoming increasingly necessary for XM, which itself saw an 18 percent jump in its total subscribers but posted a deeper $129.3 million loss in the quarter as discounts to car makers, as well as to short-term subscribers opting for contracts, ate at the company's income per user.