The main benefit of the merger of SIRIUS and XM is that consumers will be able to enjoy unprecedented enhancements, more choices and technological advancements. Through this special merger, satellite broadcasting will be completed. Although SIRIUS is growing and growing, with the merger of XM, things will become unbelievable like never before. To help the company build and grow, Gary Parsons will serve as CEO and Mel Karmazin will serve as CEO.
The final agreement between SIRIUS and XM will be created as a tax-free and all-stock merger with an estimated value of approximately $13 billion. There are about $1.6 billion in net debt in this fund. As part of this merger, XM's shareholders will receive a fixed exchange rate of 4.6 shares of SIRIUS's common stock for each XM stock they already own. This means that as a combined company, the shareholders of the two companies will own about 50% of the shares.
In general, the board will have 12 directors, including the two directors mentioned, as well as four independent members that SIRIUS and XM will choose, as well as a representative from Honda and General Motors. As you can imagine, the combined business management will be a dream team. Everyone has accumulated years of experience in consumer electronics, broadcasting, media, technology and OEM engineering.
Although SIRIUS and XM will still operate as independent companies, once the complete product details are resolved, they will come with the new name and headquarters. Therefore, after the merger, 14 million combined users will utilize the services provided. This means that for future innovations, SIRIUS and XM are creating a powerful platform to build.
It is a generous benefit to allow consumers to choose the channel they want and the specific type. This means that consumers have the opportunity to order a la carte, something that has never been heard before. By offering commercial free music, news, entertainment, talk and sports channels, it is expected that sellers will only make the business stronger. Then, having the ability to listen to music 24 hours a day, 7 days a week, 365 days a year is incredible.
The combined output of SIRIUS and XM will enable the combined company to offer consumers lower rates while still achieving a simple system with multiple functions. For companies like this, it's important to stay competitive in a tight market. So for retail partners, the merger is also good news. This means that retailers are now able to offer more and better content, giving them an edge over the competition. For example, companies such as Radio Shack, Target, and Best Buy are now able to offer products to consumers at a lower price, while also offering them more choices.
Finally, as SIRIUS and XM come together, as a combined company, satellite broadcasting will enjoy success and economic benefits. The only way to reduce prices and improve the products offered to customers is from a financial perspective. As you can see, this special merger means great success.
Orignal From: Benefits of Sirius XM Merger
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