Satellite radio operators XM and Sirius have announced a definitive $13 billion merger agreement which would cut the number of satellite radio operators in the U.S. from two to one. Under the terms of the agreement, Mel Karmazin will become CEO of the combined company, while XM chair Gary Parsons will take on the role of Chairman; XM shareholders will receive 4.6 shared os Sirius stock for every share of XM stock they own. XM and Sirius will each own about 50 percent of the combined company under what the firms characterize as a "merger of equals."
Tag Archive: Mel Karmazin
Sirius and XM To Announce Merger?
The New York Post is reporting that satellite radio providers Sirius and XM will announce plans to merge today, following a weekend of round-the-clock negotiations. Although the paper says the talks “could coll apart at any time,” the paper claims the new company would be framed as a merger of equals (rather than one company taking over the other); however, as Sirius currently boasts a greater value, it’s expected Mel Karmazin’s company would come away with a majority share of the new company.
Digital Radio Set for Growth?
Market research firm In-Stat has been looking at the development of digital radio—and likes what it sees. According to “More Consumers to Tune Into Digital Radio in 2007” the world-wide market for digial radio receivers will grow from just 5 million units in 2005 to over 25 million units in 2010. And digital radio is gainin strong awareness in the consumer marketplace: In-stat claims 73 percent of respondents to a consumer survey had at least heard of HD radio.
Volkswagen to Offer Sirius Exclusively
Volkswagen and Audi today joined the ranks of exclusively Sirius Satellite Radio-equipped car manufacturers as the two brands announced an arraignment with the satellite radio provider which will be in effect for 2007 through 2012 year cars.
Volkswagen, said Sirius, will equip approximately 80 percent of their new models with satellite radio receivers as well as offering three months of complimentary service. It was less clear as to the terms surrounding Audi related vehicles, though a press release did indicate the installation rate of satellite radio in Audi models is approximately 50%.
Sirius Satellite Radio Passes 1M Mark
Driven by robust holiday sales and helped by aggressive marketing, advertising, and an increase in consumer awareness, SIRIUS continues to see positive momentum across all channels. The company indicated that sales of its popular portable “Plug & Play” products, especially the SIRIUS Sportster, were contributing to the strong numbers, and that consumers continue to be attracted to the company’s diverse product offering and programming.
“We predicted that we would reach one million subscribers by year-end and we did it,” said Mel Karmazin, Chief Executive Officer of SIRIUS. “It’s now clear that consumers are increasingly recognizing the appeal of our programming, including commercial-free music, plus news, weather, traffic, entertainment and the best sports offering in satellite radio.”
Sirius Radio Now Available In Toyota Models
The Toyota models include: Camry, Solara (including Solara Convertible), Land Cruiser, Lexus LS 430, Lexus ES 330, Lexus LX 470, Scion xA, Scion xB and Scion tC. Toyota now joins the ranks of other automotive partners offering SIRIUS, including Audi, BMW, Chrysler, Dodge, Ford, Infiniti, Jeepâ, Lincoln-Mercury, Mazda, Mercedes-Benz, MINI, Nissan, Porsche and Volkswagen, all offering SIRIUS.
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