XM and SIRIUS Announce Their $13 Billion Merger

XM satellite radio and Sirius satellite radio announced their plans to join forces today. The merger of equals has an estimated value of around $13 billion and is an all stock swap. XM shareholders will recieve 4.6 shares of SIRIUS common stock with shareholders of both company’s ending up with approximately 50% of the new company’s stock.

“This combination is the next logical step in the evolution of audio entertainment,” said Mel Karmazin, CEO of SIRIUS Satellite Radio. “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. The combined company will be positioned to capitalize on SIRIUS and XM’s complementary distribution and licensing agreements to enhance availability of satellite radios, offer expanded content to subscribers, drive increased advertising revenue and reduce expenses. Each of our companies has a strong commitment to providing listeners the broadest range of music, news, sports and entertainment and the best customer service possible. We look forward to sharing the benefits of the exciting new growth opportunities this combination will provide with all of our stakeholders.”

The proposed merger will have to be approved by the board of directors of both company’s and various regulatory agency’s. A joint conference call and webcast have been scheduled for Tuesday morning at 8:30AM, hopefully more details will be released.

XM Radio Press Release.