Sirius satellite radio and XM satellite radio’s stocks both rose today as it looks like the merger might get approval. The FCC Chief Kevin Martin is recommending approval for the $3.8 billion dollar merger. There is still uncertainty as many of the commissioners have not openly discussed how they feel and plan to vote on the issue.
After the Microsoft/Yahoo showdown that ended in Microsoft walking away from their Yahoo merger, Investor Carl Icahn has made a huge bet that he can purchase enough Yahoo stock to overthrow Yahoo’s board and sell the company to Microsoft while netting himself a huge profit from the stock purchases. Carl Icahn has spent more than $1 billion for his over 4% stake in Yahoo’s stock. Most of Icahn’s stock has been purchased for between $24-$25 a share after the stock dropped when Microsoft walked away from the merger. If he can get control of Yahoo, and broker a deal between it and Microsoft, he has the possibility of profiting from it in the tune of $9-$10 per share he owns.
Microsoft has given Yahoo a 3 week ultimatum to accept it’s $41 billion buyout offer, or Microsoft would launch a hostile takeover through Yahoo’s shareholders at a lower price. “If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo board,” wrote Microsoft Chief Executive Steve Ballmer. Yahoo’s board officially rejected the deal a month earlier looking for a higher price. Yahoo is a dangerous stock to play at the moment, the stock price (which is highly expensive at the moment) has some definite downside if Microsoft goes hostile on Yahoo, but could lose very little if Yahoo’s board agree’s to the offer on the table.
