James Delahunty
19 Feb 2007 14:02
Sirius Satellite Radio and XM Satellite Radio have announced that both companies will merge in a stock-for-stock deal. They are the two main U.S. satellite radio providers in the young industry. This deal had been expected for a long time. XM and Sirius plan to combine to create a company with a $13 billion enterprise value (which includes $1.6 billion in net debt).
The deal will go ahead provided it receives regulatory approval. Under the deal, XM shareholders will receive 4.6 share of Sirius. Chief Executive Officer of Sirius, Mel Karmazin, will act as CEO of the combined company and XM chairman, Gary Parsons, will act as chairman of the combined company.
Source:
Reuters