XM and Sirius Satellite Radio to merge

[Tony9000]

SIRIUS and XM to Combine in $13 Billion Merger of Equals

Provides Consumers with Enhanced Content, Greater Choices and Accelerated Technological Innovation

Enables Satellite Radio to Better Compete in Rapidly Evolving Audio Entertainment Industry

Extraordinary Value Creation for Shareholders

Mel Karmazin to Serve as Chief Executive Officer and Gary Parsons to Serve as Chairman of Combined Company

WASHINGTON and NEW YORK, Feb. 19 [EDIT] -- XM Satellite Radio (NASDAQ: XMSR) and SIRIUS Satellite Radio (NASDAQ: SIRI) today announced that they have entered into a definitive agreement, under which the companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $13 billion, which includes net debt of approximately $1.6 billion.

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, currently Chief Executive Officer of SIRIUS, will become Chief Executive Officer of the combined company and Gary Parsons, currently Chairman of XM, will become Chairman of the combined company. The new company's board of directors will consist of 12 directors, including Messrs. Karmazin and Parsons, four independent members designated by each company, as well as one representative from each of General Motors and American Honda. Hugh Panero, the Chief Executive Officer of XM, will continue in his current role until the anticipated close of the merger.

The combined company will benefit from a highly experienced management team from both companies with extensive industry knowledge in radio, media, consumer electronics, OEM engineering and technology. Further management appointments will be announced prior to closing. The companies will continue to operate independently until the transaction is completed and will work together to determine the combined company's corporate name and headquarters location prior to closing.


So now what happens with O & A? Stern really loves(NOT) them and Mel will run the company.


[EDIT-post truncated because originating material is copyprotected. Unauthorized use of copyrighted content is in violation of Radio-Info's TOS.]

 

[NewRules]

So now what happens with O & A? Stern really loves(NOT) them and Mel will run the company.

Push comes to shove, Howard is business smart. He still knows its viable to keep them on satellite and sinc this will be their only gig once they abandon Free FM or are canned, Howard has the satisfaction of knowing that they are not on the same level as him.

 

[FrankF]

I feel sorry for all of the air talent, engineers, behind the scenes people that work for both companys. With this pending merger they will have to walk on egg shells and make sure their resume is up to date, for some of them will be out of work soon.

 

[Shredder]

Yep, Merger's usually mean bad things for employees and consumers.

As a happy XM customer, I Really hope things don't change at all, including price, but that's usually not the case in these situations. I hardly listen to Free radio at all now.