Atter months of speculation, the two major satellite radio companies have made it official. XM and Sirius Satellite Radio have announced a planned all-stock merger that they say will create a satellite radio company valued at $13 billion, with debt of $1.6 billion. XM shareholders each get 4.6 shares of Sirius common stock for each share of XM stock. Combined, the companies claim 2006 revenues of $1.5 billion and approximately 14 million subs. Mel Karmazin, CEO of Sirius, will be CEO of the new company.
But, holdonaminute Mel, says, well, everyone, including FCC chairman Kevin Martin:
Martin said yesterday in a statement: “The companies would need to demonstrate that consumers would clearly be better off with both more choice and affordable prices.”