SIRIUS And XM Merge

(From Cynopsis)

With both companies facing red ink, the two satellite radio businesses SIRIUS and XM, have merged in a $13 billion deal, confirming many months of rumors.

MEL KARMAZIN, CEO/Sirius will become CEO of the new and as yet unnamed entity, and GARY PARSONS, Chairman/XM, will remain as Chairman.

For the time being, operations will continue in both New York and Washington, D.C. where both are headquartered.

The merger, which is expected to be finalized at the end of this year, will have to pass rigorous FCC regulatory approval in addition to proving that a monopoly was not being formed.

Both XM and Sirius subscriptions will be honored and combined under the new company.

Currently, XM has 7.2 million subscribers and Sirius has
5.1 million customers.

Over the last few years, the satellite companies have competed for content with XM signing OPRAH WINFREY and MAJOR LEAGUE BASEBALL, while Sirius has contracts with HOWARD STERN and the NFL.

And, both have long-term agreements with car manufacturers -- XM is in new GENERAL MOTORS vehicles, as well as HONDAS and TOYOTAS in North America, and Sirius is embedded in FORDS, CHRYSLERS and BMWs.