New York, NY, April 12, 2008 --(PR.com
)-- After more than 12 months of anticipation, on March 24th, the Justice Department approved the Sirius Satellite Radio proposed buyout of XM Satellite Holdings for approximately $5 billion. The DOJ revealed that the merger was ‘unlikely to lessen competition or harm consumers.’ The government appeared to endorse the theme of the agreement implying that there is ample competition in other forms of audio entertainment that included high definition radio and internet-based delivery from devices such as the iPod. The concept of the merger was based on economies of scale since both companies continue to lose money but are showing significant gains in revenue and subscribers.
In response to public opinion from consumers and stockholders, Capital Earnings & Research launched a petition drive on March 11, 2008 to support the merger. The company was able to collect more than 7000 signatures on its Blog sites from supportive emails in a six day period of time. A cover letter accompanied sample comments from emails and the contents were sent to the DOJ and to several Congressional opponents to voice consumer demand for the merger. Capital Earnings & Research recognizes Sirius’ Chief Executive, Mel Karmazin, for his persistence and negotiating skills that helped the arrangement into its final stages of approval. The deal was first announced in February, 2007.
The buyout received the approval of shareholders last November but has to cross one more hurdle. Approval is in the hands of the FCC Chairman, Kevin Martin, who is not commenting on the case before him.
Capital Earnings & Research currently have no holdings in the referenced companies and receive absolutely no compensation for any issues related to its endorsement of the pending merger. They do however, believe that the FCC will follow the advice of the DOJ and will also endorse the merger proposal.
--- statement issued by H. Richard Oprinski, Chief Investment Officer