ISS, an independent proxy advisory service, today officially recommended XM Satellite Radio and SIRIUS Satellite Radio shareholders vote for the merger of the media companies.
The ISS analysis reveals that a merger of the 2 would allow the companies to save an estimated $6 billion in operational and general costs. The report added that a combined company could compete in the broader media market that includes high-definition radio, Internet-based radio, free radio, and digital media devices such as Apple [AAPL] iPods.
SIRI investors will vote at a special meeting slated the morning of Tuesday, November 13 in New York. XMSR investors will vote in a meeting held later that same day. The merger has already been approved by both companies' Board of Directors. A merger, if approved by the Department of Justice and the FCC, is expected to close later this year.
As of 1:30 p.m. today, SIRI shares have taken a 5.13% jump to dock at $3.287. Shares of XMSR look similar, taking a 6.5% shove to land at $12.27.