In a move that will create a combined enterprise of approximately $13-billion, Sirius Satellite Radio and XM Satellite Radio have announced today an all-stock merger, combining the two satellite companies.
“We are excited for the many opportunities that an XM and Sirius combination will provide consumers,” said Gary Parsons, Chairman of XM Satellite Radio, and Hugh Panero, CEO of XM Satellite Radio, in a joint statement.
The deal is not yet finalized as it is still pending approval by Sirius and XM shareholders, regulatory reviews and the FCC.
Sirius delivers more than 130 channels with 69 commercial-free music channels. SIRIUS also offers sporting channels with partnerships with the NFL, Nascar, NBA and NHL.
Sirius also boasts the king of shock rock radio, Howard Stern.
XM is currently the number one satellite radio provider with more than 7.6 million subscribers and studios all over the United States and Canada. XM delivers 170 digital channels and has strong partnerships in the automobile industry.
There are currently no details on the structure of the partnership, or even the name the new company will operate under.
In a move that would surely be disastrous, David Lee Roth may replace Howard Stern when he leaves the radio airwaves for satellite radio next year, according to a report.
Chaunce Hayden, a New York gossip columnist and former Stern guest, says a source at Infinity Broadcasting has told him that Roth will sign the deal.
Roth is just one of many personalities the company is looking at, according to Billboard.
Stern is set to depart on the last day of this year, before heading over to Sirius Satellite Radio.
Canadians can now tune into the hundreds of commercial free music and talk radio channels that are being broadcasted by both Sirius Satellite Radio and XM Satellite Radio as the CRTC has approved the application to let Canadians enjoy this updated medium.
Sirius Canada, which is owned by Sirius, CBC and Standard Radio, and XM Canada, which is owned by Canadian Satellite Radio and XM Radio, will bring to Canada all the great content that currently is heard around the United States. In addition to these two players, CHUM and Astral Media, will work together to compete as the little Canadian satellite radio player.
The companies must follow the regulations set forth under the Broadcasting Act, which states that 35% of content must be Canadian and that 65% of french channels must be french music. Expect the companies to introduce some new Canadian only channels that are not available south of the border.
Subscription fees for the services will range between $9.95 and $12.99 Canadian. A special device will be required to listen to satellite radio. Users can expect the service to be available within the next year.