Growth Slowing for Sirius and Merger Synergies Could Take Time; Reiterate Hold

4/24 - "...it seems unlikely that the FCC will vote on the
merger at its May 14 meeting. A ruling by late May or early
June could occur. We believe the FCC is highly likely to
approve the merger with relatively modest conditions."

"Sirius should report first quarter 2008 results in early May
showing 370,000 net new subscriber additions, down from 556,000 a year ago...Sirius could end the first quarter with 8.7 million subscribers, up 32% year over year. We anticipate the majority of subscriber additions will come from OEM automotive distribution. Sirius should continue to lead the satellite radio industry in terms of its subscriber growth rate, but growth has slowed...We forecast 2008 full year revenue of $1.2 billion and an oibda loss of $206 million. EPS may be a loss of $0.30."

"Sirius trades at 5x 2008E revenue and $531 per our 2008
subscriber estimate of 10....