Sirius and XM Satellite Radio Merger
In February, 2007, Sirius Satellite Radio and XM Satellite Radio signed in an agreement to combine these two radio services and form a solitary satellite radio network in Canada and USA. The merger would bring them more than thirteen million subscribers across the continent.
Each of the XM's share would be replaced by 4.6 shares of Sirius. The stockholders of each company would retain almost 50% shares of the newly formed company. The CEO of Sirius would be continuing as a CEO in the new company and XM's chairman would also retain it's designation. Aims:
- The combined effort would minimize the cost of licensing the broadcast materials.
- The merger would help the management to minimize the number of required workers.
- The new company would be able to spend more on the research and development areas.
- As of January 2008, the merger is still under the review of the Federal Communication Commission of USA and Senate antitrust task force.
- On the 19th of February 2007, the merger was announced by the board of directors of the two companies officially.
- In March, Sirius Satellite Radio and XM Satellite Radio submitted a "Consolidated Application for Authority to Transfer Control" at the Federal Communication Commission of USA.
- In June, Mass Media Bureau of the Federal Communication Commission publicly announced that the application had been accepted.
- In October, the two companies announced that they were going to organize a shareholder vote.
- On November 13th , Sirius Satellite Radio Inc.'s shareholders approved the $5 billion acquisition of XM Satellite Radio Holdings Inc. by the company. Almost 96% of Sirius' shareholders voted for the merger.