Sirius, XM Merger to be announced today?
Tags: 2, XM
Sirius Satellite Radio and XM Satellite Radio are expected to announce their planned merger today according to the New York Post.
While we've been down this path before - albeit the source of the rumor is only slightly more reputable (theflyonthewall vs the New York Post), there also seems to be a lot more details this time.
According to the Post, the transaction is expected to be structured as a merger of equals, but given Sirius' higher enterprise value, shareholders in the Mel Karmazin-led firm will likely come away with a larger percentage of a combined company. This goes against Bear Stearns' belief that that the split of the merged company would go 55% in XM's favor.
Also, the NY Post says that XM Chairman Gary Parsons will retain that title in the combined entity, with Karmazin likely taking the CEO role. It is unclear what role, if any, XM CEO Hugh Panero will play.
[New York Post]