Update: Sirius, XM Confirm Merger In The US; Canada Pending
February 19, 2007, 17 years ago
According to Reuters, the two main US satellite radio providers, Sirius Satellite Radio and XM Satellite Radio on Monday said they would merge in a stock-for-stock deal, a move that has been long expected in the young industry. XM and Sirius said they would combine to create a company with an enterprise value of $13 billion, including $1.6 billion in net debt. Under the terms of the deal, XM stockholders will get 4.6 shares in Sirius. Veteran media executive Mel Karmazin, currently Sirius CEO, will be CEO of the combined company, and Gary Parsons, now chairman of XM, will hold the same position in the new company. The deal will need regulatory approval.
As reported by the Ottawabusinessjournal.com, the situation in Canada is a bit murkier. Sirius Canada Inc. is owned by the government-owned CBC, privately held Standard Radio and US-based Sirius Satellite Radio. XM Canada is affiliated with XM Satellite Radio Holdings Inc. and Canadian Satellite Radio Holdings Inc., out of Toronto. Sirius Canada and XM Canada both received regulatory approval in 2005, making commitments to comply with Canadian standards. Following the merger announcement, Canadian Satellite Radio Holdings shares surged 25 per cent, gaining $1.66 to trade at $8.30 per unit.
