The long proposed merger between Sirius Satellite Radio and XM Satellite Radio has finally been realized on July 29 with the new company to...

The long proposed merger between Sirius Satellite Radio and XM Satellite Radio has finally been realized on July 29 with the new company to be known as Sirius XM Radio, Inc. XM shareholders will receive 4.6 shares of Sirius common stock for each share of XM. As promised when the merger was first announced, existing radios will continue to work and every subscriber has the option of maintaining their current service package.

The company also reiterated guidance for the combined Sirius XM Radio. Based upon a preliminary analysis, the combined company expects to realize total synergies, net of the costs to achieve such synergies, of approximately $400 million in 2009; to post adjusted EBITDA exceeding $300 million in 2009; and to achieve positive free cash flow, before satellite capital expenditures, for the full year 2009. The company also expects that both synergies and adjusted EBITDA will continue growing beyond 2009.

Sirius XM Radio begins day one with over 18.5 million subscribers, making it the second-largest radio company, based upon revenue, in the country; and, based upon subscribers, the second largest subscription media business in the U.S. With fewer than 10 percent penetration of the home and car market, the opportunity for continued growth is significant.

“I am delighted to announce the completion of this exciting merger between Sirius and XM,” said Mel Karmazin, CEO of Sirius XM Radio, in a statement. “We have worked diligently to close this transaction, and we look forward to integrating our best-in-class management teams and operations so we can begin delivering on our promise of more choices and lower prices for subscribers.”

“Every one of our constituencies is a winner,” he continued. “Combined, Sirius XM Radio will deliver superior value to our shareholders. By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth. Our laser focus on subscribers will continue and listeners can be assured that there will be no disruption in service. We also believe that the completion of the merger will eliminate any confusion that has been lingering in the marketplace.”

Sirius XM Radio has exclusive content relationships with an array of personalities and artists, including Howard Stern, Oprah, Martha Stewart, Jimmy Buffett, Elvis, Jamie Foxx, Barbara Walters, Frank Sinatra, Opie & Anthony, The Grateful Dead, Willie Nelson, Bob Dylan, Dale Earnhardt Jr., Tom Petty, and Bob Edwards. SIRIUS XM Radio is the leader in sports programming as the Official Satellite Radio Partner of the NFL, Major League Baseball, NASCAR, NHL, and PGA, and broadcasts major college sports.

AddThis Story to Your Favorite Social Bookmarking Site!