The two competing sattelite radio stations have announced there future plans to merge. The new company, which does not yet have a name, will be worth $13 billion including debt of almost $1.6 billion dollars. XM shareholders will receive 4.6 shares of Sirius common stock for each share of XM they own.
Rappers like Eminem, Grandmaster Flash, 50 Cent and DJ Premier have channels or shows on Sirius, while XM has deals with rappers like Ludacris, Snoop Dogg, Talib Kweli, Trick Daddy, Jermaine Dupri and others.
Under the new deal, XM and Sirius shareholders will each own approximately have of the combined company, which will be lead by Sirius’ current CEO, Mel Karmazin.
“This combination is the next logical step in the evolution of audio entertainment,” said Karmazin, CEO of SIRIUS Satellite Radio. “Together, our best-in-class management team and programming content will create unprecedented choice for consumers, while creating long-term value for shareholders of both companies. The combined company will be positioned to capitalize on Sirius’ and XM’s complementary distribution and licensing agreements to enhance availability of satellite radios, offer expanded content to subscribers, drive increased advertising revenue and reduce expenses.”
They still have to get the thumbs up from the FCC, but it looks like something to look forward to if you have either one of the radios.