With so many uncertainties in the air, XM
XM is postponing the annual shareholder event, originally slated for May 23. With last month's Department of Justice approval, XM is now just an FCC blessing away from clearing the two regulatory hurdles that threatened to doom the deal last year.
Meeting formally with investors doesn't make a lot of sense if the deal is about to get done. Sirius, set to stage its annual investor powwow a few days earlier, is also deferring its meeting. Shareholders of both companies already approved the merger last year, so what else is there to do beyond pacing back and forth in the FCC waiting room?
Investors shouldn't read anything into this morning's dual postponements. The FCC is still unlikely to block the merger, though it may impose a few competitive concessions. About the only thing we can infer from the decisions is that the deal doesn't appear ready to be derailed. If XM and Sirius were going to walk away from the deal, they would be trumpeting their annual shareholder meetings as a way to get investors onboard with their new plans.
It's been a long time since the deal was announced in mid-February of last year. XM and Sirius have kept their eyes on the prize, even while overcoming deal fatigue, mounting losses, and self-serving objections from terrestrial heavies such as Clear Channel
Unfortunately, the clock just keeps ticking as the competitive landscape around them makes it that much harder to have an impact on every new eardrum. Let's hope the deal gets done while there's still time for the companies to be relevant.
Longtime Fool contributor Rick Munarriz is such a big satellite-radio fan that he subscribes to both XM and Sirius. He does not own shares in any of the companies in this story. He is also a member of the Rule Breakers analytical team, seeking out the next great growth stock early in its defiance. The Fool has a disclosure policy.