XM and SIRIUS Satellite Finally Merge

17 years ago view-show 487,179

By: Rizoh

      A 2-year old industry rumor was laid to rest last weekend when XM Satellite Radio and SIRIUS Satellite Radio entered into an agreement to merge into one company. The assets and holdings of the two companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $13 billion, including net debt of approximately $1.6 billion.

      XM Chairman Gary Parsons will continue to lead the new company and Sirius CEO/President Mel Karmazin will run the combined operation.

      Under the terms of the merger, 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.

      "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.

      "This combination is the next logical step in the evolution of audio entertainment," said Mel Karmazin, CEO of SIRIUS Satellite Radio.

      We sure hope it is.