Sirius Set to Buy XM

Published: 2007-02-20
Satellite radio provider Sirius Satellite Radio is set to buy its competitor XM Satellite Radio.

According to Reuters this will give each XM shareholder 4.6 shares in Sirius for each XM share they own, "The deal has Sirius paying about $4.6 billion in stock for XM, or a 21.7 percent premium to XM's closing share price of $13.98 on Friday, based on shares outstanding in the latest regulatory filings."

Bringing together these two major satellite radio companies isn't sitting right with local radio stations in the United States, "The National Association of Broadcasters, which represents local broadcast radio stations, immediately criticized the tie-up because it would concentrate the licenses into one company and accused them of seeking a government bailout."

No word on whether the United States government will approve this buyout.

Writer: Michelle Garcia

   

 

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