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BofA: Sirius-XM Merger Chances Improved

While the chances that the proposed Sirius-XM satellite radio merger will go through have improved, Bank of America analyst Jonathan Jacoby still believes that there is still only a 35 percent chance of FCC approval.

Jacoby believes that one of the main dangers to approval of the deal is that the FCC might extend the comment period until after the 2008 elections, writes MediaPost. If that happens, the incoming administration may prove less amenable to perceived monopoly building than the current one.

Jacoby’s improved outlook - up from less than a 30 percent chance a few months ago - comes despite the fact that the two companies failed to make a strong enough case to regulators and legislators that the merger would not create an abusive monopoly.