You may have heard a few things about the XM, Sirius merger announced yesterday. Let me be the first to tell you that it WILL NOT happen. No way on earth will the Department of Justice let the deal go through. The didn’t let Dish Network and DirecTV combine and they won’t let this happen either. Also, the FCC already has a provision in place specifically barring both satellite radio licenses from being owned by the same company. I promise you the FCC will not alter this provision.

I believe this is a great time to make some money shorting these stocks after it settles a bit. I am neither long nor short but we all knew they would try and make this happen due to the financial struggles of both companies. If you look at the options traded Friday there were plenty of people that knew it would happen this weekend. Heck the XMSR call options are just break even and the stock is up 25%. Last time I checked, just because two companies are battling doesn’t give them the right to combine and start screwing the user. They call this a monopoly and this is illegal according to our laws. I think radio has a fantastic future but it is their own fault they gave such huge contracts to the talent. Let them create a radio star instead of buying them. Let them build instead of buy. Just don’t let them merge.

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