For the commissioners at the FCC, the big question may now be, “Is it in the public interest if Sirius and XM, so hobbled by market conditions, cut services to survive?”
A recent report on the companies by Goldman Sachs was so dire, it sent satellite radio shares tumbling and left Wall Street wondering if a combined Sirius/XM would be worth more than $1.75 a share! Kids are buying MP3 players and iPhones instead of satellite radio subscriptions, said Goldman analysts. Also of note, XM and Sirius have spent a combined $85 million on merger-related expenses to date, said Goldman Sachs.
BusinessWeek picked up on the idea that Goldman’s doom-and-gloom report may just push the deliberating minds at the FCC toward a pro merger decision.