But you won’t be reprogramming your channels anytime soon. For now, Howard and Oprah, Disorder and Deep Tracks, will remain on their separate systems. The deal is subject to approval by both companies' shareholders, antitrust agencies and, of course, the FCC. Pending regulatory approval, the companies expect the transaction to be completed by the end of 2007. They’ll continue to operate independently until the deal is finalized.
Sirius
Under the terms of the agreement, XM shareholders will receive a fixed exchange ratio of 4.6 shares of Sirius common stock for each share of XM they own. XM and Sirius shareholders will each own approximately 50% of the combined company.
Said Parsons and Panero in a joint statement: "We are excited for the many opportunities that an XM and Sirius combination will provide consumers. The combined company will be better positioned to compete effectively with the continually expanding array of entertainment alternatives that consumers have embraced since the FCC first granted our satellite radio licenses a decade ago."
Karmazin, meanwhile, called the merger "the next logical step in the evolution of audio entertainment. 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. We look forward to sharing the benefits of the exciting new growth opportunities this combination will provide with all of our stakeholders."
For us Earth dwellers, the prospect of getting twice as many channels is tempting, so we’re hoping the combined company will opt for expanded programming diversity in the channel lineup rather than choosing to condense it in order to avoid redundancy. Go for the long tail, Mel and Gary—think as if you were music fans; y’know, the people who are paying for your respective services. Make it an ongoing contest of parallel channels from the two sides to see which can come up with the deepest deep tracks, for instance.
It’ll be fascinating to see how this plays out, but for now, as Tom Petty so frequently sings on Sirius Classic Vinyl and its XM equivalent, the waiting is the hardest part…especially for Mel and Gary.
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