Sirius Satellite Radio, Inc. (NDAQ:SIRI) and XM Satellite Radio Holdings, Inc. (NDAQ:XMSR) shares rose today after the companies announced plans to merge on Monday. The proposed $13 billion merger would include approximately $1.6 billion in debt and have a combined 14 million customers. Under the terms of the agreement, XM Radio investors would receive four shares of SIRI for each share of XM Radio that they own. The new company, which has yet to be named, would be run by Sirius CEO Mel Karmazin.

Despite the optimism seen in the stocks today, the merger is likely to face several hurdles including approvals from the U.S. Department of Justice's antitrust division and the Federal Communications Commission. In January, the FCC chairman said that the agency's rules would not permit such an action. Currently, shares of SIRI are trading up around 2.5%, while shares of XMSR are trading up around 8%. This is definitely a stock to watch as the proposal seeks to gain approvals.

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