Long wait for satellite radio deal may end soon
Long wait for satellite radio deal may end soon
Sunday July 6, 2:20 pm ET
By Christopher S. Rugaber, AP Business Writer
Sirius, XM's long wait may end soon as Federal Communications Commission decision nears
WASHINGTON (AP) -- Sirius Satellite Radio Inc.'s acquisition of rival XM Satellite Radio Holdings Inc. may be cleared by federal regulators this month, and it can't happen fast enough for XM.
As the regulatory review drags on, the company is struggling to add enough new listeners to cover its massive operating costs, and slumping automobile sales further dim future prospects. Analysts say lobbying by traditional broadcasters opposed to the deal is one reason the regulatory review is taking so long.
XM is struggling with higher borrowing costs and reported a wider loss in its most recent quarter. The company recently refinanced $400 million of its debt at a much higher interest rate and borrowed another $100 million just last month. That's on top of $1.6 billion in existing debt.
Both companies say they could continue to operate separately if the deal is shot down, but XM would likely face a much tougher time refinancing its debt on its own.
Approval of the transaction would be a defeat for the National Association of Broadcasters, which represents traditional radio stations and has lobbied heavily against the deal. But the NAB may take some satisfaction from delaying regulatory approval beyond what many analysts expected.
full story
Sunday July 6, 2:20 pm ET
By Christopher S. Rugaber, AP Business Writer
Sirius, XM's long wait may end soon as Federal Communications Commission decision nears
WASHINGTON (AP) -- Sirius Satellite Radio Inc.'s acquisition of rival XM Satellite Radio Holdings Inc. may be cleared by federal regulators this month, and it can't happen fast enough for XM.
As the regulatory review drags on, the company is struggling to add enough new listeners to cover its massive operating costs, and slumping automobile sales further dim future prospects. Analysts say lobbying by traditional broadcasters opposed to the deal is one reason the regulatory review is taking so long.
XM is struggling with higher borrowing costs and reported a wider loss in its most recent quarter. The company recently refinanced $400 million of its debt at a much higher interest rate and borrowed another $100 million just last month. That's on top of $1.6 billion in existing debt.
Both companies say they could continue to operate separately if the deal is shot down, but XM would likely face a much tougher time refinancing its debt on its own.
Approval of the transaction would be a defeat for the National Association of Broadcasters, which represents traditional radio stations and has lobbied heavily against the deal. But the NAB may take some satisfaction from delaying regulatory approval beyond what many analysts expected.
full story
posted by Doc at 5:20 PM
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