The claim is to be judged YES if, by 12:00am EST on January 1, 2010, XM Radio and Sirius have merged.
Background:The respective managements of XM Satellite Radio Holdings, Inc. (NasdaqGS:XMSR) and Sirius Satellite Radio Inc. (NasdaqGS:SIRI) announced on Monday, February 19, 2007 that the companies had agreed to a merger. Such a merger had been speculated upon for some time. In order to be completed, the merger will require both corporate (board/shareholder) and regulatory (FCC and Department of Justice) approval. Corporate approval is considered trivial but regulatory approval is uncertain.
Judging Guidelines:* The phrase "XM Radio and Sirius have merged" should be understood to mean that the business operations now known as XM Radio and Sirius are combined and operated together. The judge should exercise his or her discretion as to whether a NO judgment should be entered even if the corporations XM Satellite Radio Holdings, Inc. and Sirius Satellite Radio Inc. merge. If, for example, regulatory approval for the merger requires the corporations to divest one of their satellite licenses and three of the satellites in the combined fleet of seven, the judge would be well within his or her discretion to enter a NO judgment.* The merger, as announced, is a stock-for-stock merger of equals. A YES judgment should not depend on whether an eventual merger is accomplished through another legal structure, such as a asset sale or share purchase.