Over a year after talk of a Sirius and XM merger first surfaced, the companies made it official on Monday.
The two U.S. satellite radio providers announced a merger of equals on President's Day. Under the terms of the agreement, XM shareholders will receive 4.6 shares of Sirius stock for each share of XM they own. XM and SIRIUS shareholders will each own approximately 50% of the combined company.
Sirius Chief Executive Mel Karmazin, will become chief executive officer of the new company, while XM Chairman Gary Parsons will be chairman of the merged concern. The companies said that together they will have an enterprise value of $13 billion, including $1.6 billion of long-term debt.
"This combination is the next logical step in the evolution of audio entertainment," Karmazin was quoted as saying. "Together, our best-in-class management team and programming content will create unprecedented choice for consumers, while creating long-term value for shareholders of both companies."
According to the statement, users will be able to pick their services on a "more a la carte basis" than currently available. Some of the programming will be commercial free; currently all Sirius stations and some of XM's offerings do not carry advertising.
The merger is subject to shareholder approval and also must pass antitrust hurdles. Federal regulators have said certain laws preclude such a combination that would monopolize the relatively young industry.
The two U.S. satellite radio providers announced a merger of equals on President's Day. Under the terms of the agreement, XM shareholders will receive 4.6 shares of Sirius stock for each share of XM they own. XM and SIRIUS shareholders will each own approximately 50% of the combined company.
Sirius Chief Executive Mel Karmazin, will become chief executive officer of the new company, while XM Chairman Gary Parsons will be chairman of the merged concern. The companies said that together they will have an enterprise value of $13 billion, including $1.6 billion of long-term debt.
"This combination is the next logical step in the evolution of audio entertainment," Karmazin was quoted as saying. "Together, our best-in-class management team and programming content will create unprecedented choice for consumers, while creating long-term value for shareholders of both companies."
According to the statement, users will be able to pick their services on a "more a la carte basis" than currently available. Some of the programming will be commercial free; currently all Sirius stations and some of XM's offerings do not carry advertising.
The merger is subject to shareholder approval and also must pass antitrust hurdles. Federal regulators have said certain laws preclude such a combination that would monopolize the relatively young industry.