updated 03:45 pm EST, Mon February 19, 2007
Sirius XM Merger Official
Confirming earlier allegations, both Sirius and XM this afternoon announced a formal union. Dubbed a "merger of equals," according to both firms, the deal will see each company's investors own roughly 50 percent of the united company, preventing any one faction from gaining absolute control of the new venture, which is now said to be worth $13 billion. Mel Karmazin of Sirius (pictured) will assume the role of CEO while Gary Parsons of XM will be its chairman.
While the deal has yet to be approved and should only be finalized by the end of this year, the currently unnamed business intends to preserve as much of both halves as possible, expanding the channel lineup and using the combined strength of their hardware research. The move should also let satellite better compete against iPods and HD Radio, the companies claim. A webcast explaining more should be available online and on both radio networks tomorrow at 8:30 AM Eastern.