Originally Posted by RAVEN56706
Zerohour, on the front page of AVSFORUM it says Sirius is buying them out...but here it is for you:
Sirius Buys XM Satellite Radio for $4.6 Billion
Yes, you heard that right - it's not reversed. Sirius Satellite Radio has agreed to buy out rival XM Radio in a $4.6 billion dollar stock deal. This is the equivalent of Apple buying out Microsoft... OK, maybe just all their secretaries, but you get the idea.
The arrangement would mean that all subscribers of both services would now be able to access such hot ticket satellite radio stars as Oprah Winfrey and Howard Stern. I for one am holding out for Brittany Spears to open a show about hair care products.
The $4.6 billion deal has Sirius paying the same in stock, or a 22 percent premium to XM Radio's closing share price of $13.98 the end of last week.
Mel Karmazin, the present CEO of Sirius, will apparently lead the new company as CEO, while Gary Parsons, the current chairman of XM Radio, will carry on in the new organization. Hugh Panero's position (currently CEO of XM Radio) is unspecified following the merger.
The confusing part to this sudden merger is the logitical part. Currently the satellite radio licenses forbid a single company from owning both business units, but it's possible that rules may be relaxed given the current state of affairs (low stock prices and a general lack of market penetration). The Justice Department and FCC will have the final say, so we'll stay tuned to see what the end result of this acquisition looks like.
Form 8-K for SIRIUS SATELLITE RADIO INC
Entry into a Material Definitive Agreement, Financial Statements and E
Item 1.01 Entry into a Material Definitive Agreement.
On February 19, 2007, Sirius Satellite Radio Inc. ("SIRIUS") and XM Satellite Radio Holdings Inc. ("XM") entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which SIRIUS and XM will combine their businesses through a merger of XM and a newly formed, wholly owned subsidiary of SIRIUS (the "Merger"), with XM remaining as the surviving corporation following the Merger.
Sounds like the merged company might be called XM.