The primary benefit of the SIRIUS and XM merger is that consumers will be able to enjoy enhanced content, much greater choice, and an advance in technology like never before. With this particular merger, satellite radio will be complete. Although SIRIUS has already been growing and evolving, with the XM merger, things will be even more incredible than ever before. To help the company establish and grow Gary Parsons will serve as the Chairman and Mel Karmazin the CEO.
The infinitive agreement between SIRIUS and XM will be created as a tax-free and all-stock merger with an estimated value around $13 billion. Included in this money is approximately $1.6 billion in net debt. As a part of this merger, the shareholders from XM will get a set exchange ratio of 4.6 shares of common stock for SIRIUS for each of the XM stock already owned. This means that as a combined company, the shareholders of both companies will own about 50%.
In all, the board of directors will be 12 directors including the two mentioned, along four independent members that SIRIUS and XM will choose, and one representative from American Honda and GM. As you can imagine, the management of the combined business will be a dream team. Each brings to the table years of vital experience in the arenas of consumer electronics, radio, media, technology, and OEM engineering.
Although both SIRIUS and XM will still operate as independent companies, once the full merger details have been ironed out, they will come together with a new name and headquarters. As a result, of the merger, 14 million combined subscribers will take advantage of the services provided. That means that for future innovations, SIRIUS and XM are creating a strong platform on which to build.
Giving consumers the ability to choose the channels they want, as well as the specific genre is a tremendous benefit. This means that consumers have the chance to buy a la carte, something never heard of before. With channels offering commercial free music, news, entertainment, talk, and sports, it is expected that the merger will only make the business stronger. Then, having the ability to listen to music 24/7, 365 days a year is incredible.
The outcome of the SIRIUS and XM merger will allow the combined company to offer consumers lower rates while still getting an easy system that has multiple functions. For companies such as this to stay competitive in a tight market, this is critical. Then for retail partners, the merger is also good news. This means that retailers will now be able to provide much greater content, giving them the edge over competition too. For instance, companies such as Radio Shack, Target, and Best Buy will now be able to provide products to consumers at a low price while also giving them more from which to choose.
Finally, with SIRIUS and XM coming together, as a merged company shows the satellite radio arena will enjoy seeing success, as well as financial gain. By being able to lower prices but also improve what is being offered to the customer, the only way to go is up from a financial perspective. As you can see, this particular merger is one meant for great success.
Source by Bob Maines