Cramer: Let XM and Sirius Merge
Finally, at long last, the Department of Justice has approved the XM-Sirius Satellite Radio merger. But the deal can’t go through unless the Federal Communications Commission also blesses it. But why wouldn’t they? After all, this is the same FCC that created Clear Channel. And if the feds have no problem with a company that collects 18% of all radio revenues, they shouldn’t mind a newly combined firm expected to control only 5% of the market.
At least that’s Cramer’s take on it. Clear Channel’s had it easy compared to XM and SIRI . Sure, CCU’s had to swap or sell over 100 radio stations to make its deals go through, but those deals happened much faster. The Jacor Communications buyout: four months. AMFM: 10 months. XM-SIRI? Twelve months and counting. Plus, the feds’ want control of the new company’s pricing plans for an unspecified period of time. Maybe it’s time the FCC played fair.
Now, they did say they’d follow the Justice Department’s lead on the XM-SIRI merger, but Cramer’s not the type to sit and wait. So he urged viewers to call FCC Chairman Kevin Martin and demand that "K-Mart" push the deal through.
Now that the Justice Department did its part, “it’s up to the FCC,” Cramer said. “And it’s up to us to keep the pressure on so that this merger happens and happens now.”
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