[opendtv] Satellite radio rivals Sirius, XM to merge
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 20 Feb 2007 18:52:59 -0500
How strange. I wonder whether this will be permitted, in view of what
happened to the Dish/DirecTV merger.
Bert
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Satellite radio rivals Sirius, XM to merge
Mark LaPedus
(02/19/2007 10:09 PM EST)
URL: http://www.eetimes.com/showArticle.jhtml?articleID=197007242
SAN JOSE, Calif. - Sirius Satellite Radio Inc. Monday (Feb. 19) agreed
to acquire rival XM Satellite Radio Holdings Inc. for $4.57 billion in
stock.
Under the terms of the agreement, XM shareholders will receive a fixed
exchange ratio of 4.6 shares of Sirius common stock for each share of XM
they own. XM and Sirius shareholders will each own approximately 50
percent of the combined company.
Mel Karmazin, chief executive of Sirius, will become CEO of the combined
company. Gary Parsons, currently chairman of XM, will become chairman of
the combined company. Hugh Panero, the CEO of XM, will continue in his
current role until the anticipated close of the merger.
The new company's board of directors will consist of 12 directors,
including Karmazin and Parsons, four independent members designated by
each company, as well as one representative from each of General Motors
and American Honda.
The combination creates a nationwide audio entertainment provider with
combined 2006 revenues of approximately $1.5 billion based on analysts'
consensus estimates. Today the companies have approximately 14 million
combined subscribers.
Together, Sirius and XM will create a stronger platform for future
innovation within the audio entertainment industry and will provide
significant benefits to all constituencies, according to the companies.
"We are excited for the many opportunities that an XM and Sirius
combination will provide consumers," said Gary Parsons, Chairman of XM
Satellite Radio and Hugh Panero, CEO of XM Satellite Radio, in a joint
statement. "The combined company will be better positioned to compete
effectively with the continually expanding array of entertainment
alternatives that consumers have embraced since the Federal
Communications Commission (FCC) first granted our satellite radio
licenses a decade ago."
"This combination is the next logical step in the evolution of audio
entertainment," said Mel Karmazin, CEO of Sirius Satellite Radio, in the
same statement.
The transaction is subject to approval by both companies' shareholders,
the satisfaction of customary closing conditions and regulatory review
and approvals, including antitrust agencies and the FCC. Pending
regulatory approval, the companies expect the transaction to be
completed by the end of 2007.
All material on this site Copyright 2007 CMP Media LLC. All rights
reserved.
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