NEW YORK, July 29, 2008
Satellite Radio Merger Finally Complete
Sirius XM Radio Inc. Says It Has 18.5M Subscribers, Expects Cost Savings Of $400M In 2009
-
(CBS/AP)
-
Section Eye On Technology Daniel Sieberg's reports on computers and technology for the CBS Evening News.
The combined company plans to use the name Sirius XM Radio Inc. Its stock will continue to be traded on the Nasdaq under the ticker symbol SIRI. They first announced their deal in March 2007.
XM shareholders will receive 4.6 shares of Sirius common stock for each share of XM.
The combined company reaffirmed its guidance for the deal in a statement. It expects cost savings of about $400 million in 2009 and to post earnings before interest, taxes, depreciation and amortization of more than $300 million. It also plans to achieve positive cash flow, before satellite capital expenditures, in 2009.
The corporate headquarters will be located in New York, and XM Satellite Radio will remain headquartered in Washington, D.C.
The new company said it has 18.5 million subscribers.
Shares of Sirius XM fell 28 cents to $1.60 in morning trading amid heavy volume.
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Best-selling author Mitch Albom on his first nonfiction work since "Tuesdays with Morrie."
