"Sirius Satellite Radio Inc.'s agreement to buy rival XM Satellite Radio Holdings Inc. for $4.57 billion in stock is a bet that U.S. regulators will alter rules that bar the only two pay-radio companies from combining.It will be interesting to see the definition of market. Is it all satellite radio? or all radio? Or all entertainment options?
Shares of XM may rise on the agreement, announced yesterday when U.S. markets were closed for a holiday. The terms value Washington-based XM at $17.02 a share, 22 percent more than its $13.98 close on Feb. 16. New York-based Sirius closed at $3.70.
U.S. Federal Communications Commission Chairman Kevin Martin said a merger combining the only two satellite radio services will face a thorough review"
Tuesday, February 20, 2007