XM / Sirius

Part of one of my 2007 predictions just came true.  Sirius and XM just announced a merger.  The NAB immediately criticized the merger.  The broadcasters have enough influence in Washington to nix this if it really were a huge issue (as I predicted) but it may be that it squeaks through.   Perhaps they work out a deal in which the NAB allows the merger to go through in return for  a renewed agreement not to go after local markets, which are the bread and butter of terrestrial radio.  XM & Sirius haven't done much in local as of yet but initiatives like having dedicated channels for certain cities and having repeaters have made the broadcasters nervous.  The announced price represents a 21.7% premium on XM's stock -- it will be interesting to see how far off this XMSR trades tomorrow.  The discount will represent the market's opinion on whether the FCC will let the deal through.