Sirisu XM merger complete

[lovekeiiy]

sirius news announcment
XM news annoument

Apparently the merger was completed on July 29, 2008

SIRIUS and XM Complete Merger
SIRIUS XM Radio Chosen as New Corporate Name
Combined Company Has Over 18.5 Million Subscribers, Annualized Second Quarter Revenue Exceeding $2.4 Billion
Company to Offer Consumers Best of Both Services, While Maximizing Significant Efficiencies
SIRIUS XM Reiterates Financial Guidance; Expects 2009 Synergies of $400 million and 2009 Adjusted EBITDA of over $300 Million

NEW YORK, July 29, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- SIRIUS Satellite Radio (Nasdaq: SIRI) and XM Satellite Radio today announced that they have completed their merger, resulting in the nation's premier radio company. The new company plans to change its corporate name to SIRIUS XM Radio Inc. The combined company's stock will continue to be traded on the Nasdaq Global Select Market under the symbol "SIRI."

SIRIUS XM Radio begins day one with over 18.5 million subscribers, making it the second-largest radio company, based upon revenue, in the country; and, based upon subscribers, the second largest subscription media business in the U.S. With under 10% penetration of the home and car market, the opportunity for continued growth is significant.

"I am delighted to announce the completion of this exciting merger between SIRIUS and XM," said Mel Karmazin, CEO of SIRIUS XM Radio. "We have worked diligently to close this transaction and we look forward to integrating our best-in-class management teams and operations so we can begin delivering on our promise of more choices and lower prices for subscribers."

"Every one of our constituencies is a winner. Combined, SIRIUS XM Radio will deliver superior value to our shareholders. By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth. Our laser focus on subscribers will continue and listeners can be assured that there will be no disruption in service. We also believe that the completion of the merger will eliminate any confusion that has been lingering in the marketplace," added Karmazin.

XM shareholders will receive 4.6 shares of SIRIUS common stock for each share of XM.

Competitive New Options for Consumers

SIRIUS XM Radio broadcasts more than 300 channels of programming, including exclusive radio offerings from Howard Stern, Oprah, Opie & Anthony and Martha Stewart, among others. SIRIUS XM Radio will offer these expanded options to consumers through arrangements with the world's leading automakers and its relationships with nationwide retailers.

As a result of the merger, SIRIUS XM Radio will also be able to offer consumers new packages in audio entertainment, including the first-ever a la carte programming option in subscription media. In addition to two a la carte options, the new packages will include: "Best of Both," giving subscribers the option to access certain programming from the other network; discounted Family Friendly packages; and tailored packages including "Mostly Music" and "News, Talk and Sports." The first of the new packages will be available in the early Fall.

"One of the most exciting benefits of this transaction is the ability to offer subscribers the option of expanding their subscriptions to include the Best of Both services. Given the respective popularity of exclusive programming on both SIRIUS and XM, we expect many subscribers will upgrade their current subscription," said Karmazin.

"The upside potential for both consumers and shareholders is huge. Consumers have the ease of adding premier programming without purchasing a new device. For shareholders, this kind of organic growth is a key part of the company's future and the success we expect to see," said Karmazin.

As promised when the merger was first announced, existing radios will continue to work and every subscriber has the option of maintaining their current service package.

Benefits for Shareholders Begin Immediately, Integration Already Under Way

SIRIUS XM Radio expects to begin realizing the synergies expected from this transaction immediately.

"In addition to realizing significant potential revenue growth, the management team will move quickly to capitalize on the synergies that many analysts have predicted for this combination. We expect to begin achieving those synergies without sacrificing any of the world-class programming and marketing we are known for," said Karmazin.

The company today also reiterated guidance for the combined SIRIUS XM Radio. Based upon a preliminary analysis, the combined company expects to realize total synergies, net of the costs to achieve such synergies, of approximately $400 million in 2009; to post adjusted EBITDA exceeding $300 million in 2009; and to achieve positive free cash flow, before satellite capital expenditures, for the full year 2009. The company also expects that both synergies and adjusted EBITDA will continue growing beyond 2009.

"We have all the tools necessary to begin executing as a combined company with high aspirations for subscriber growth and greater financial performance in part from the significant synergies that we begin realizing literally today -- on Day One. We are moving quickly to integrate the operations," said Karmazin.

The corporate headquarters will be located in New York, NY and XM Satellite Radio, the company's wholly-owned subsidiary, will remain headquartered in Washington, DC.

Effective after the close of the market yesterday, trading in XMSR common stock on the Nasdaq Global Select Market ceased.

I haven't seen any changes yet to my subscriptions, but it's cool. I look forward to some baseball and more college football games.

[WormholeXtreme]

So as an XM user will I see any changes?

[lovekeiiy]

I assume you will. Right now, both companies programming will remain the same. We should be getting email updates on how they're going to merge programming.

What'll be interesting is going to be equipment. I'm not familiar enough with the hardware, but if they're on difference frequency or something, will that mean one of both will need to get new equipment or adapters? I've read sirius has figured out a way to compress their signal to get more channels; something over 300 versus the limit of around 100 or 150 currently.

[Stewii Griffin]

Mel Karmazin on howard stern said. Well I dont have the transcript but.

Your radio will for for atleast the next 15 years probably longer

XM should be able to get stern and SOME other options by sept 09 for an additional $3-$4 a month which sucks!!! I wanted to put my factory xm back in my car.

Didn't give a straight answer on sirius getting MLB.

They plan to have a new satilite up broadcasting new signal and new equipment out by 2015.

both companies spent around 7 billion getting the merger passed

Those numbers could be a little bit off but its been almost 2 weeks since I heard the show.

If I hear anything else I'll post about it. I listen to stern all the time.

[D_Litch]

I've been wanting Sirius for a while now. What "extra" XM stuff would Sirius get, that they didn't have before?

[Stewii Griffin]

Originally Posted by D_Litch

I've been wanting Sirius for a while now. What "extra" XM stuff would Sirius get, that they didn't have before?

if xm didn't have MLB they prob would have not merged. Same if Sirius didn't have Stern Xm would have never considered the merger. XM was the dominate company. MLB is the big reason most people would pick xm over sirius. Sirius has almost every other sport except MLB which of course is a big radio audience.

[WormholeXtreme]

I didn't pick either one. The only reason I have XM is becasue my Hyundai came with an XM radio and my Denon receiver also uses XM. And it seemd like every rental car I had always had an XM radio. I never got one with a Sirius radio in it.

[lovekeiiy]

I went for Sirius for NFL. I'm not sure how much coverage XM has for the NFL, but they do have the NFL channel, and all the games; come playoffs, they carry all three broadcasts for the games--both teams local and the national. I know Sirius also has the NBA broadcast and a NBA channel. XM also has Golf, and some college conference that Sirius doesn't.

As for the rest, the music, in my opinion, is comparable. They have their differences, but nothing that I feel makes one leaps and bounds over the other. Sure, Sirius has Howard Stern and Martha Stewart, but XM has Opra. Since the only talk radio I listen to is sports, I don't pay attention to the rest.

If they don't merge the key content, sports, what's the point? I've always felt the sports content is what really differentiate the two companies for the consumers.

[ZoomZoom71]

I'm just ready for my Sirius stock to start going back up.

[lovekeiiy]

Well, then you better hope they actually see a profit since that was the major point of the merger.

[kingsfan2099]

I have xm and have noticed since the merger I don't get any of the sports talk radio stations....espn...fox sports...espn news...anyone else have this problem....

[Twilight]

Originally Posted by ZoomZoom71

I'm just ready for my Sirius stock to start going back up.

Don't hold your breath dude. They spend cash like drunken sailors

[lovekeiiy]

Sirius money spending habits doesn't have the biggest effect on stock prices. It's all about meeting or exceeding profits expectations. Also, predictions on how well, and innovative, the company can be.