I don't know about all of you, but we here at the show love the merger of Sirius and XM and all the cool new stuff they have to offer. But who knew that Sirius Canada and XM Canada didn't merge yet after the US counterparts have merged well over a year ago? I know I didn't. This week, the two companies announced their plans to merge forces to create a super satellite sound alliance!
The $520 million mashup, no my_____ pun intended, will take two competing companies and align them side by side to make a 1.7 million audience base.
For more on the extraterrestrial squish, hit the break.
John Bitove, who is apparently the chairman of all that is Canadian Satellite Radio (and parent company of XM Canada), said this.
As a combined entity, XM Canada and Sirius Canada will deliver exceptional value to subscribers, and enhance the long-term success of satellite radio in Canada.
Just so we have things in perspective, XM Canada is owned by Canadian Satellite Radio Holdings, which is 47% owned by Sirius XM, the US satellite radio merger result. Sirius Canada has some people to answer to as well. 40% of that company belongs to Slaight Communications, 40% by CBC Radio and 20% by Sirius XM. Got it?
On the other side of things, CEO of Sirius Canada, Mark Redmond commented on the matter as well.
The benefits of a merger are clear, and together we'll be better able to create more growth and opportunity for shareholders, accelerate technological innovation and ensure that satellite radio is able to compete in the rapidly evolving audio entertainment industry.
This combination is the next logical step in the evolution of satellite radio in Canada.
The transaction is still subject to approval by the Canadian version of the FCC.