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Jul 29 2008
11:24AM
EDT
No More Static: Sirius and XM Complete Merger
Our cousins at Wired.com report on the Sirius-XM merger:
Well, it's official: Sirius and XM satellite radio have finally tied the knot, ending speculation by creating a single entity known as Sirius XM Radio, Inc. that represents all of the country's satellite radio programming.
"I am delighted to announce the completion of this exciting merger between SIRIUS and XM," stated the new Sirius XM CEO Mel Karmazin, formerly the CEO of Sirius. "We have worked diligently to close this transaction and we look forward to integrating our best-in-class management teams and operations so we can begin delivering on our promise of more choices and lower prices for subscribers."
As part of the deal, XM shareholders will receive 4.6 shares of stock in the new company for every share of XM stock they hold, putting the purchase price at around $2.76 billion given stock prices at the close of trading on Monday. Karmazin says the new company will benefit both shareholders and existing customers. "Combined, SIRIUS XM Radio will deliver superior value to our shareholders. By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth."
Here's what the 18.5 million subscribers to the new combined service can expect. First, they'll be able to pick and choose programming on a channel-by-channel basis, which hasn't been possible on either service before. However, XM spokesperson Chance Patterson told me last summer that a la carte channel subscriptions will require new radios. (As promised, subscribers can keep their existing equipment and programming package if they don't want this and other new features.)
Subscribers to both former services will be offered a "Best of Both" service that will cost about $7 per month, given previously suggested pricing details (each separate service previously cost $13 a month). Various music- or sports-oriented packages will become available in the fall, as well as premium packages that offer all of one service's programming plus a selection from the other.
Antitrust concerns had plagued the proposed merger, but apparently, other digital music distribution systems were significant enough that even a combined XM/Sirius would continue to face competition. As a result, the FCC approved the merger last week. My hunch: someone took one look at streaming radio on an iPhone and the deal was done.
Eliot Van Buskirk for Wired.com
Well, it's official: Sirius and XM satellite radio have finally tied the knot, ending speculation by creating a single entity known as Sirius XM Radio, Inc. that represents all of the country's satellite radio programming.
"I am delighted to announce the completion of this exciting merger between SIRIUS and XM," stated the new Sirius XM CEO Mel Karmazin, formerly the CEO of Sirius. "We have worked diligently to close this transaction and we look forward to integrating our best-in-class management teams and operations so we can begin delivering on our promise of more choices and lower prices for subscribers."
As part of the deal, XM shareholders will receive 4.6 shares of stock in the new company for every share of XM stock they hold, putting the purchase price at around $2.76 billion given stock prices at the close of trading on Monday. Karmazin says the new company will benefit both shareholders and existing customers. "Combined, SIRIUS XM Radio will deliver superior value to our shareholders. By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth."
Here's what the 18.5 million subscribers to the new combined service can expect. First, they'll be able to pick and choose programming on a channel-by-channel basis, which hasn't been possible on either service before. However, XM spokesperson Chance Patterson told me last summer that a la carte channel subscriptions will require new radios. (As promised, subscribers can keep their existing equipment and programming package if they don't want this and other new features.)
Subscribers to both former services will be offered a "Best of Both" service that will cost about $7 per month, given previously suggested pricing details (each separate service previously cost $13 a month). Various music- or sports-oriented packages will become available in the fall, as well as premium packages that offer all of one service's programming plus a selection from the other.
Antitrust concerns had plagued the proposed merger, but apparently, other digital music distribution systems were significant enough that even a combined XM/Sirius would continue to face competition. As a result, the FCC approved the merger last week. My hunch: someone took one look at streaming radio on an iPhone and the deal was done.
Eliot Van Buskirk for Wired.com
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