NY Post: XM, Sirius Merger Deal Near
Rumors of a marriage between satellite radio companies XM and Sirius again are at the forefront thanks to an article in the New York Post that claims the two sides are close to announcing a merger.
Both sides were meeting in Washington, DC to finalize an agreement, with an announcement coming as soon as Monday, the Post claims. Neither company could be immediately reached for comment.
Antitrust concerns way heavy on the negotiations, thus lawyers on both sides were working to address them in the final agreement. The companies were expected to take an equity stake in any combined entity.
The Post says that Sirius CEO Mel Karmazin would retain his position in the combined company, as would XM Chairman Gary Parsons. It appears that XM CEO Hugh Panero may not have a high-ranking position, as it was unknown if he would have a role.
As much as $7 billion could be saved annually with a combined company that would have approximately 12 million subscribers. The combination would also merge Sirius' premier content such as Howard Stern and Martha Stewart with XM's, which includes Major League Baseball and Oprah Winfrey.