[opendtv] Re: Satellite radio rivals Sirius, XM to merge
- From: "John Willkie" <johnwillkie@xxxxxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 20 Feb 2007 17:04:06 -0800
Not too likely, since their licenses were specifically granted on the
condition that they not merge. Requires FCC and Department of Justice
approval; the former is unlikely, the latter possible.
Despite what they say, market conditions haven't really changed since grant.
HD Radio, and Mp3 music players already existed.
One caveat: they could claim to be "failing enterprises."
Technically, kinda interesting to see how they will combine geo-sync and
polar orbit satellites.
John Willkie
> -----Original Message-----
> From: opendtv-bounce@xxxxxxxxxxxxx [mailto:opendtv-bounce@xxxxxxxxxxxxx]
> On Behalf Of Manfredi, Albert E
> Sent: Tuesday, February 20, 2007 3:53 PM
> To: opendtv@xxxxxxxxxxxxx
> Subject: [opendtv] Satellite radio rivals Sirius, XM to merge
>
> How strange. I wonder whether this will be permitted, in view of what
> happened to the Dish/DirecTV merger.
>
> Bert
>
> --------------------------------
> 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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