XM Canada wants nothing to do with a merger... yet
Thursday, March 27, 2008 at 8:09 AM
Tags: 2, XM
While the U.S. versions of Sirius and XM are happily skipping along holding hands, our neighbors up North may not be sharing the same sentiment.
Following the Justice Department's greenlight of the Sirius-XM merger, XM Canada announced that they'll have no part of such shenanigans - at this time.
"We have a strong business model in Canada and are committed to an aggressive growth strategy aimed at increasing our subscriber base and delivering outstanding programming right across the country," said Michael Moskowitz, the newly minted President and CEO of XM Canada.
"We are excited about XM Canada's prospects as 60 per cent of all new vehicles made by Canada's automotive manufacturers are equipped with XM satellite radios, we now have exclusive NHL satellite radio broadcast rights and we now have 400,000 subscribers," added Moskowitz. "We will diligently review any opportunity that arises from this decision and evaluate the impact on our economic positioning and the benefit derived for our customers and shareholders."
So while some analysts opine on the prospects of a reverse takeover - where XM Canada would issue shares to buy Sirius Canada - this statement by Moskowitz clearly indicates that's not in the cards. Yet.
[Broadcaster Magazine]
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Comments
posturing, plain and simple.
Posted by: fright | March 27, 2008 9:15 AM
In Soviet Canada XM buys out Sirius!!!
Posted by: Artie Lange | March 27, 2008 9:24 AM
Please...we don't need Canada to show the US how to make money. They wrote that article because they are cold and bored.
Posted by: Anonymous Coward | March 27, 2008 9:41 AM
Right now i wish i was Canadian.
Fuck this merger!
Posted by: scott | March 27, 2008 10:06 AM
Last i remember Sirius had more subs with less Cars.
I have been wondering how this merger will effect Canada.
Do they still need more money from XM USA?
Posted by: John | March 27, 2008 10:10 AM
This is just one more aspect of the operational nightmare which these companies face in trying to integrate the two companies.
Posted by: Stack Pointer | March 27, 2008 10:38 AM
That is why the Sirius connect kit's sell so well. It is easy to change the GM to Sirius with the SIR-GM1 and the new SIR-GM3A.
Posted by: ARJ | March 27, 2008 11:06 AM
I didn't know they were separate companies. If so they can do what they want. If not I don't think they have a choice.
At any rate it really doesn't matter what Commyda does here. I could care less.
Posted by: Androyster | March 27, 2008 12:05 PM
Oh Canada smarter than the bushy administration.....
Posted by: Anonymous Coward | March 27, 2008 1:22 PM
Interesting since Sirius is kicking XM's ass in Canada also. Guess they would rather go BK.
Posted by: Sirius_deadhead | March 27, 2008 1:36 PM
Let them eat cake! LOL
Posted by: Paul | March 27, 2008 1:41 PM
Sirius isn't kicking XM's ass in Canada.. both companies are doing quite well.
I hope there is no merger at all. However in the event that there is one, what do the Canadian companies have to sell themselves with? XM's quality hardware & sound quality and repeater coverage? Other than that there'd be the same channels wouldn't there! Unless the CRTC rules cause some channels to only be available on one service in Canada and not the other..
Posted by: Joel | March 27, 2008 2:20 PM
Since Sirius has TWICE the subs of XM Canada, I would say they are getting their ass's kicked
Posted by: Sirius_deadhead | March 27, 2008 4:46 PM
Twice the subs of XM?!?!?!! WHAT ARE YOU TALKING ABOUT!??!!
Posted by: Joel | March 27, 2008 5:05 PM
XM Canada is less than 70% Canadian owned, probably much less...
XM Agreements
On November 17, 2005, we agreed to terms on a number of agreements with XM which provide us with exclusive rights to offer XM satellite digital audio radio service in Canada.
Immediately prior to the Offering, we issued to XM 11,077,500 Class A Subordinate Voting Shares representing a 23.33% equity interest in the Company.
We have also obtained a $45 million standby credit facility from XM which can be utilized to
finance purchases of terrestrial repeaters or for the payment of licence fees. The facility matures on December 31, 2012 and bears an interest rate of 9%. XM has a right to convert unpaid principal amounts into Class A Subordinate Voting Shares of the Company.
Immediately prior to the closing of the Offering, 3,323,250 Class A Subordinate Voting Shares were issued to GMCL representing a 7% equity interest in the Company following completion of the Offering. An additional 1,424,250 Class A Subordinate Voting Shares were issued in escrow for another automobile original equipment manufacturer (OEM) that enters into a distribution agreement on specific terms. If another OEM does not enter into such an agreement by March 31, 2006, the shares will be transferred to GMCL.
Posted by: Anonymous Coward | March 27, 2008 6:10 PM
^^ from First Quarter 2006 MD&A Canadian Satellite Radio Holdings Inc. TSX:XSR
Posted by: Anonymous Coward | March 27, 2008 6:16 PM