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Originally Posted by B-Line
All this because of Howard Stern 
Gotta love "The Howard"
B |
"The Howard"
Here's some more info on the merge:
XM Satellite Radio and Sirius Satellite Radio have jointly announced that they have entered into an agreement to combine the two companies - in an all-stock merger - with a combined enterprise value of $13 billion.
Sirius' superstar CEO Mel Karmazin will head the new company as its CEO, and Gary Parsons will also retain his title as Chairman as the new company. The new company's board of directors will consist of 12 directors, four independent members designated by each company, as well as one representative from each of General Motors and American Honda.
Hugh Panero will continue in his current role until the close of the merger. Further management appointments will be announced prior to closing.
The combination creates a nationwide audio entertainment provider with combined 2006 revenues of approximately $1.5 billion based on analysts' consensus estimates.
Follow the jump to read what's in store for customers and investors under this new merged entity...
The combined XM and Sirius will provide...
Greater Programming and Content Choices
The combined company will offer consumers the ability to pick and choose the channels and content they want on a more on an a la carte basis. It will also provide consumers with a broader selection of content, including a wide range of commercial-free music channels, exclusive and non-exclusive sports coverage, news, talk, and entertainment programming. Together, XM and SIRIUS will be able to improve on products such as real-time traffic and rear-seat video and introduce new ones such as advanced data services including enhanced traffic, weather and infotainment offerings.
Accelerated Technological Innovation
The merger will enable the combined company to develop and introduce a wider range of lower cost, easy-to-use, and multi-functional devices through efficiencies in chip set and radio design and procurement. Such innovation is essential to remaining competitive in the consumer electronics-driven world of audio entertainment.
Benefits to OEM and Retail Partners
The combined company will offer automakers and retailers the opportunity to provide a broader content offering to their customers. Consumer electronics retailers, including Best Buy, Circuit City, RadioShack, Wal-Mart and others, will benefit from enhanced product offerings that should allow satellite radio to compete more effectively.
Enhanced Financial Performance
This transaction will enhance the long-term financial success of satellite radio by allowing the combined company to better manage its costs through sales and marketing and subscriber acquisition efficiencies, satellite fleet synergies, combined R&D and other benefits from economies of scale. Wall Street equity analysts have published estimates of the present value of cost synergies ranging from $3 billion to $7 billion.
More Competitive Audio Entertainment Provider
The combination of an enhanced programming lineup with improved technology, distribution and financials will better position satellite radio to compete for consumers' attention and entertainment dollars against a host of products and services in the highly competitive and rapidly evolving audio entertainment marketplace. In addition to existing competition from free "over-the-air" AM and FM radio as well as iPods and mobile phone streaming, satellite radio will face new challenges from the rapid growth of HD Radio, Internet radio and next generation wireless technologies.
The transaction is subject to approval by both companies' shareholders, the satisfaction of customary closing conditions and regulatory review and approvals, including antitrust agencies and the FCC. Pending regulatory approval, the companies expect the transaction to be completed by the end of 2007.
Conference Call and Webcast Information
XM and Sirius will hold a joint conference call and webcast on Tuesday, February 20, 2007 at 8:30 AM ET to discuss this announcement. The conference call can be monitored by dialing 800-573-4840 within the U.S. and 617-224-4326 for all other locations, passcode 29490052. The webcast can be accessed at
http://www.sirius.com/ and
http://www.xmradio.com/ as well as on their satellite radio services by tuning to SIRIUS channel 122 and XM channel 200. The webcast will be archived at
http://www.sirius.com/ and
http://www.xmradio.com/