1. The company(s) would need to freeze prices for three years. 2. "A la carte" options would need to be available within three months of the merger. 3. 8% of their airspace (24 channels) would need to be dedicated to noncommercial and minority programming.

The backing by Martin and the stipulation that the merger would have to be enacted within three months (or at least the a la carte programming component) is so far great news for consumers. More as the long, slow slog toward satellite radio supremacy continues. [NYT via Giz]

XM RADIO AND XM NAVTRAFFIC TO BE AVAILABLE ON ALL 2009 PORSCHE 911 MODELS

911 is First Porsche Sports Car to Add XM Availability

WASHINGTON, D.C. - June 9, 2008 - XM (NASDAQ: XMSR), the nation's leading provider of satellite radio, today announced that XM radio and its award-winning XM NavTraffic service will be available as a factory-installed feature on all 2009 Porsche 911 models. This will be the first time that XM is available in a Porsche sports car. XM is the exclusive satellite radio provider to Porsche.

XM radio has been available as a factory-installed feature for Cayenne models since 2005, and will now expand availability on all 2009 Porsche 911 models offering drivers more than 170 channels of music, sports, news, talk and entertainment coast-to-coast.

In addition to XM radio, the 911 will offer XM NavTraffic. Powered by NAVTEQ, XM NavTraffic is the nation's leading real-time traffic service, featuring comprehensive information and coast-to-coast updates every minute. With availability in 80 major North American markets, XM NavTraffic ensures that drivers have the most current and most detailed traffic and incident information at their fingertips, whether they're commuting or traveling.

"We are proud to partner with Porsche to make our award-winning XM NavTraffic service available as a feature in the entire 2009 911 model range," said Steve Cook, executive vice president, automotive, XM Satellite Radio. "The Porsche brand is known for its exceptional performance, and we're proud to deliver our advanced audio entertainment and traffic technology to drivers who expect nothing less."

"We are excited about offering XM Satellite Radio with the XM NavTraffic option to our 911 customers. This will be a great addition to our new for 2009 Porsche Communication System 3.0," said David Pryor, vice-president of marketing, Porsche Cars North America.

XM NavTraffic feeds data on incidents, such as accidents and road construction, directly to a vehicle's GPS navigation system via XM's satellite and ground network. The driver is alerted to these incidents through the navigation screen, allowing him or her to route around a jam before getting caught in traffic. Where available, XM NavTraffic provides real-time traffic information by using red, yellow and green color codes to indicate high, medium and low congestion levels.

All 2009 Porsche vehicles equipped with XM Radio and XM NavTraffic come with a three-month complimentary subscription.

The VoiceBox Technologies voice recognition software in the Pioneer units allows users to speak "normally." There will no longer be an exact rhetoric required to achieve a simple task. For example, rather than having to say something long the lines of "Play Artist Green Day," the units can recognize casual conversation like "I want to hear Green Day," or possibly "Play those phat Busta Rhymes beats, yo." [Giz]

The group consists of Beasley Broadcast Group, Bonneville International, Cox Radio, Emmis Communications, Entercom Communications, Greater Media, National Public Radio and Radio One.

The group is working with mapping giant, NAVTEQ, to include traffic and digital maps in the HD Radio spectrum. HD Radio has never really gotten its foot in the door, but a service like this may be just what the world needs to differentiate between terrestrial radio and satellite radio, which is still a bit expensive for some. [MediaWeek via Orbitcast]

"After a careful and thorough review of the proposed transaction, the Division concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers. The Division reached this conclusion because the evidence did not show that the merger would enable the parties to profitably increase prices to satellite radio customers for several reasons, including: a lack of competition between the parties in important segments even without the merger; the competitive alternative services available to consumers; technological change that is expected to make those alternatives increasingly attractive over time; and efficiencies likely to flow from the transaction that could benefit consumers.

"The Division's investigation indicated that the parties are not likely to compete with respect to many segments of the satellite radio business even in the absence of the merger. Because customers must acquire equipment that is specialized to the satellite radio service to which they subscribe, and which cannot receive the other provider's signal, there has never been significant competition for customers who have already subscribed to one or the other service. For potential new subscribers, past competition has resulted in XM and Sirius entering long-term, sole-source contracts that provide incentives to all of the major auto manufacturers to install their radios in new vehicles. The car manufacturer channel accounts for a large and growing share of all satellite radio sales; yet, as a result of these contracts, there is not likely to be significant further competition between the parties for satellite radio equipment and service sold through this channel for many years. In the retail channel, where the parties likely would continue to compete to attract new subscribers absent the merger, the Division found that the evidence did not support defining a market limited to the two satellite radio firms that would exclude various alternative sources for audio entertainment, and similarly did not establish that the combined firm could profitably sustain an increased price to satellite radio consumers. Substantial cost savings likely to flow from the transaction also undermined any inference of competitive harm. Finally, the likely evolution of technology in the future, including the expected introduction in the next several years of mobile broadband Internet devices, made it even more unlikely that the transaction would harm consumers in the longer term. Accordingly, the Division has closed its investigation of the proposed merger."

[AP; Orbitcast]

If you're still curious about the damn merger that would among other things make features like à la carte programming possibly available—well, the Department of Justice and Federal Communications Commission are still sitting on their hands trying to decide whether or not this merger would be badass (the answer is yes). Lately, the keen, savvy and fortune-telling analysts have been quick to say an end is in sight, but now that we are passing the one-year mark, who knows, really. [Orbitcast, CNN Money]

It is full blown, high resolution, touchscreen goodness from XM that looks like it was finally designed by the consumers and for the consumers. It is easier to read, easier to operate and gives much more of an "entertainment" feel to XM radio. The merger can wait for all I care. This is too pretty to pass up. [Orbitcast]

APPROVED OR DENIED? DRAMA BUILDS AROUND SIRIUS-XM MERGER... DEVELOPING...

Why has Sirius/XM merger moved at such a slow pace? It's obvious. It seems every Dick, Sam and Joe on Capitol Hill needs to approve the deal before anything can progress. As of yesterday, it was on day 342 of the merger progression. See the above chart to get an idea of how this timeframce stacks up with some of the other big name mergers, courtesy of Orbitcast. Chevron and Texaco are merely puny little oil companies compared to the joined might of Sirius and XM. no surprise they didn't have to jump through as many hoops to receive approval for a merge.

The manufacturers are ready and Sirius and XM have filled out all of the required paperwork numerous times—it's really on the FCC at this point. With this merger, the FCC has set a record for the longest application-to-approval time lag to date. Bravo! Now come on Drudge, don't let me down! [Orbitcast again]

Well, there are a few culprits worthy of nose thumbing. People are nixing satellite radio in favor of other options like MP3 players, HD Radio and other entertainment packages; people are getting their satellite radio fix from factory-installed units, because it is hard to find a vehicle without the option to have either XM or Sirius integrated; and the common folk are still waiting out the Sirius and XM merger.

I guess what I'm getting at is simple: Don't give up on satellite radio yet. Give it a chance.[Orbitcast

According to Ford, the company will probably migrate all cars and crossovers to either roof-mounted or in-glass setups like in the new Ford Taurus, which promise similar results without the annoying realization that the motor powering your automatic antenna just busted. [LA times]

FORD SHOWCASES FUTURE OF IN-CAR SATELLITE COMMUNICATIONS AT INTERNATIONAL CES 2008

• Popular Ford SYNC system upgrades and other new in-car communications technologies to be unveiled at consumer electronics show on Sunday
• Announcements include Ford's new SIRIUS Travel Link™ navigation system, which gives drivers and passengers up-to-the-minute information on current gas prices, traffic, coast-to-coast weather conditions, sports scores and movie listings
• New SIRIUS Travel Link system is coupled to Ford's next-generation navigation - developed with industry leader Xanavi
• The system includes full music "jukebox" capability - with space for up to 2,400 tracks and Gracenote® technology for album cover art and music voice control
• All-new 2009 Lincoln MKS luxury sedan - on sale this summer - is first vehicle with Ford's full suite of new in-car communications technologies
• Every new Ford, Lincoln and Mercury vehicle will be available with Ford's award-winning SYNC system by year end; 85 percent of Ford's retail volume will be offered with SYNC - including Bluetooth connectivity

DEARBORN, Mich., Jan. 4, 2008 - Building on the success of SYNC, Ford Motor Company unveils the next generation of in-car communications at the International CES on Sunday.

The company will announce what comes next for SYNC -developed in partnership with Microsoft - as well as introduce International CES attendees to Ford's new SIRIUS Travel Link™ navigation system.

"Ford's goal is to deliver the smart, connected in-car experience that customers today demand and to lead the industry into a new era of in-vehicle connectivity," says Derrick Kuzak, Ford's group vice president of Global Product Development, who will attend the International CES, the world's largest consumer trade event and showcase for new technologies.

"Ford is answering the call with the best technology solutions from companies like Microsoft and SIRIUS, connecting customers with mobile devices, important information they need on the road and bringing the experience to life with the latest in navigation technology and branded audio," Kuzak adds.

SYNC is one of the rising stars in the auto industry today and is on track to reach 1 million sales in early 2009. SYNC connects people and their favorite portable devices while in the vehicle, including media players and Bluetooth-enabled mobile phones.

In addition to new SYNC features to be revealed at the International CES, Ford has confirmed that nearly every new Ford, Lincoln and Mercury vehicle will be available with SYNC by year end, when approximately 85 percent of company's retail volume will be offered with SYNC - including its Bluetooth connectivity.

Ford SIRIUS Travel Link™ navigation system
At the International CES, Ford also will announce it is moving in-car connectivity further forward with the launch of a next-generation navigation system, available for the first time ever with SIRIUS Travel Link.

With Travel Link, drivers and passengers will have access to up-to-the-minute information and entertainment content through the vehicle's navigation system. This includes: current gas prices from an estimated 120,000 filling stations; local, real-time traffic information for 78 markets; coast-to-coast weather conditions with five-day forecasts; sports scores, and movie listings.

Travel Link works through the existing SIRIUS satellite and repeater infrastructure - offering uninterrupted, coast-to-coast coverage. Specifically, the Ford SIRIUS Travel Link system provides information on:

• Traffic Data: SIRIUS Travel Link combines real-time traffic speed and flow data with accident and incident information to allow the user to navigate around congested areas.

• Weather: SIRIUS Travel Link shows coast-to-coast weather data, current conditions and five-day forecasts, detailed storm cell information, hurricane and tropical storm tracking, local wind speeds, and even ski resort conditions.

• Fuel Prices: Drawing on information from more than 120,000 gas stations, SIRIUS Travel Link sorts fuel options by price, distance or alphabetically. If requested, the navigation system can route users to the gasoline station with the lowest fuel price.

• Sports: No matter your passion - NFL, NBA, MLB, NHL, NASCAR, NCAAF, NCAAB, and golf - SIRIUS Travel Link provides scores and schedules and can be personalized for the user's selected teams.

• Movies: With listings from more than 4,500 movie theaters, SIRIUS Travel Link helps consumers plan ahead by providing movie times, theater addresses, ratings and run lengths. Using the Ford navigation system, the data can be sorted by distance. If requested, the navigation system can route users to the selected movie theater.

"Having this information in a car is game-changing," said Doug Wilsterman, SIRIUS senior vice president and general manager for automotive OEMs. "This is technology that drivers will use everyday."

When introduced this summer, the all-new 2009 Lincoln MKS will be one of the first vehicles with Ford's full suite of new in-car communications technologies, including Travel Link. The service will be offered on multiple Ford, Lincoln, and Mercury vehicles by the end of the year.

A six-month introductory subscription to the SIRIUS Travel Link service - combined with the SIRIUS Satellite Radio audio service - will be included in every Ford, Lincoln and Mercury vehicle equipped with Ford's next-generation navigation system.

In-Car Communications Popularity Soars
American consumers increasingly expect to stay connected and enjoy instant access to information, studies show. Approximately 243 million Americans have mobile phones today and four of every five adults have regular access to the internet.

By 2009, trends indicate there will be as least 250 million portable media players in use.

A third of U.S. consumers are very interested in having Internet access in their vehicles, and the number is close to 50 percent for survey respondents between the ages of 16 and 25, according to a 2007 J.D. Power Automotive Emerging Technologies study.

"Consumers are increasingly demanding seamless connectivity between their house and office and car," noted Sheryl Connelly, Ford Global Trends and Futuring manager. "They want to be able to access information 'just in time' or on-demand, because they are used to having access to it wherever they go. More than anything, they want to stay connected and informed."

# # #

"General Motors believes the proposed merger is and will be in the public interest because the merged company will be able to offer consumers expanded programming choices and a broad range of service packages, including packages at lower prices." - (Richard M. Lee, Executive Director - Satellite Radio Services, General Motors North American Operations)

"We believe that a company that combines the capabilities of Sirius and XM could serve the interests of consumers by offering a more dynamic and potentially cost-effective product, spurring additional competition with audio entertainment providers such as terrestrial radio, and that this may result in greater innovation."
- (Paul Mascarenas, Vice President Engineering, Product Development - The Americas, Ford Motor Company)

" ... It has become evident that satellite radio and digital satellite services must compete mightily in the U.S. with a wide array of burgeoning entertainment forms and an ever-widening list of technology participants who are delivering services in this space."
- (Charles Koch, Manager, American Honda Product Planning)

"This expanded choice and lower price is exactly the value our consumers want and deserve."
- (Len Hunt, Executive Vice President and Chief Operating Officer, Kia Motors America)

"Rather than being forced to choose between content that currently is exclusive to one satellite radio provider, our customers will gain access to packages offering the 'best of both' services for significantly less than the current combined price, as well as packages of fewer channels at much lower prices."
- (Wayne Killen, Director of Product Planning, Hyundai Motor America)

Press Release:

XM Announces First Ferrari Model to Feature XM Radio and XM NavTraffic

Ferrari 612 Scaglietti will Feature Standard, Factory-Equipped XM Radio and XM NavTraffic with Three Years Service

WASHINGTON, Aug. 7 /PRNewswire-FirstCall/ — XM (NASDAQ:XMSR) , the nation's leading provider of satellite radio, announced the first Ferrari model to come with factory-installed XM Satellite Radio and XM NavTraffic real-time information service. The Ferrari 612 Scaglietti will come equipped with XM Radio and XM NavTraffic as standard features that will be incorporated into the vehicle's advanced audio and navigation system. Ferrari will include three years of XM Radio and XM NavTraffic service with each vehicle.

"XM is now available from Ferrari, one of the most prestigious vehicle makers in the world," said Steve Cook, executive vice president, Automotive, XM Satellite Radio. "Now Ferrari drivers can enhance their driving experience by discovering music and listening to sports, talk and news on the more than 170 channels of XM Radio. XM NavTraffic also enables Ferrari drivers to route around a jam so they can continue to enjoy the road."

XM NavTraffic is available in 79 major U.S. markets, alerting drivers to real-time traffic information. The data is delivered to the driver's GPS navigation system via XM's satellite pipeline to provide information on current traffic conditions, such as traffic speeds, accident locations, and road closings. Where available, XM NavTraffic also provides information that allows users to view an overlay of color-coded traffic flow information, indicating the average speed of travel along the driver's planned route.

About XM

XM (NASDAQ:XMSR) is America's number one satellite radio company with more than 8.2 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City, Chicago, the Country Music Hall of Fame in Nashville, Toronto and Montreal, XM's 2007 lineup includes more than 170 digital channels of choice from coast to coast: commercial-free music, premier sports, news, talk radio, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with Ferrari, General Motors, Honda, Hyundai, Nissan, Porsche, Subaru, Suzuki and Toyota is available in 140 different vehicle models for 2007. XM's industry-leading products are available at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com/.

Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include demand for XM Satellite Radio's service, the Company's dependence on technology and third party vendors, its potential need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 10-K filed with the Securities and Exchange Commission on 3-1-07. Copies of the filing are available upon request from XM Radio's Investor Relations Department.

Source: XM

XM and General Motors Launch Satellite Radio Program for GM Certified Used Vehicles, Cadillac and HUMMER Certified Pre-Owned Vehicles

XM , the nation's leading satellite radio service, and General Motors Corp. today launched a satellite radio trial program for GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, now making the XM trial program available to buyers of both new and certified used models. XM will be available in more than 115,000 of these certified GM vehicles in 2007, and grow to more than 168,000 vehicles in 2008.

Under this program, all GM Certified Used Vehicles (Chevrolet,
Pontiac, Buick, GMC, Oldsmobile models), Cadillac and HUMMER Certified Pre-Owned Vehicles equipped with XM Radio will be available with three trial months of XM service and a waived activation fee. A list of previous model year Chevrolet, Pontiac, Buick, GMC, Oldsmobile, Cadillac and HUMMER vehicles factory-equipped with XM can be found online at http://www.xmradio.com/whatisxm/inyourvehicle/used-vehicles.xmc.

GM is the nation's largest automaker and the industry leader in manufacturer-certified used vehicle sales, representing nearly one-third of the volume of all certified used vehicles sold in the U.S. GM Certified Used Vehicles has been the top-selling certified used vehicle brand each of the last five years, according to Autodata Corp.

"GM is XM's largest automotive partner and XM looks forward to providing premier entertainment to this important and growing segment of pre-owned vehicle customers," said Marisa Uchin, director of remarketing and automotive strategy, XM. "Now customers who purchase a certified GM used vehicle from Chevrolet, Pontiac, Buick, GMC, Oldsmobile, Cadillac or HUMMER have the opportunity to conveniently experience XM's 170-plus channels of music, talk, sports and entertainment, adding to the exceptional driving experience customers come to expect when purchasing a certified used vehicle."

"Over the last five years, XM has been featured in millions of GM vehicles," said Paul Pejza, manager, GM Certified Used Vehicles. "It is only natural that we launch this program to provide GM Certified Used Vehicles customers an even more compelling value."

GM Certified Used Vehicles, the number-one selling manufacturer-certified brand, are high-quality, reconditioned vehicles, available at participating Buick, Chevrolet, Pontiac and GMC dealers. All models are six years old or newer, have 60,000 miles or less, are reconditioned to stringent GM Certified Used Vehicles standards and must undergo a rigorous 117-point inspection and reconditioning process. All GM Certified Used Vehicles are supported by a fully transferable 5-year, 100,000-mile powertrain limited warranty with no deductible*, three-month/3,000-mile comprehensive bumper-to-bumper warranty, a three-day/150-mile customer satisfaction guarantee, and 24-hour roadside assistance during the term of the warranty. For more information about GM Certified Used Vehicles, visit http://www.gmcertified.com/.

Cadillac Certified Pre-Owned Vehicles come with a 6-year/100,000-mile powertrain limited warranty; and Hummer Certified Pre-Owned Vehicles come with a bumper to bumper 6-year/100,000 mile warranty. For a previously owned HUMMER to become a Certified Pre-Owned Vehicle it is tested to meet HUMMER's stringent standards and undergoes a rigorous 100+ point inspection. In addition, vehicles must be less than 48 months old, driven fewer than 50,000 miles with no serious accidents or body repairs.

About XM

XM is America's number one satellite radio company with more than 8 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City, Chicago the Country Music Hall of Fame in Nashville, Toronto and Montreal, XM's 2007 lineup includes more than 170 digital channels of choice from coast to coast: commercial-free music, premier sports, news, talk radio, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Hyundai, Nissan, Porsche, Subaru, Suzuki and Toyota, is available in 140 different vehicle models for 2007. XM's industry-leading products are available at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com/.

About General Motors Corp.

General Motors Corp. , the world's largest automaker, has been the global industry sales leader for 76 years. Founded in 1908, GM today employs about 280,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at http://www.gm.com/.

* Whichever comes first, from original in-service date.

Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include demand for XM Satellite Radio's service, the Company's dependence on technology and third party vendors, its potential need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 10-K filed with the Securities and Exchange Commission on 3-3-06. Copies of the filing are available upon request from XM Radio's Investor Relations Department.

Although rumors have been running rampant since this morning, it's now official — they'll be combining in a $13 billion "merger of equals." Where have I heard that before? Oh wait, yeah — isn't DaimlerChrysler trying to sell off one of those "equals" as we speak? Anyway, here's the press release — hot off of wherever it is press releases come from these days:

SIRIUS and XM to Combine in $13 Billion Merger of Equals

*Provides Consumers with Enhanced Content, Greater Choices and Accelerated Technological Innovation
*Enables Satellite Radio to Better Compete in Rapidly Evolving Audio Entertainment Industry
*Extraordinary Value Creation for Shareholders
*Mel Karmazin to Serve as Chief Executive Officer and Gary Parsons to Serve as Chairman of Combined Company

WASHINGTON and NEW YORK, Feb. 19 /PRNewswire-FirstCall/ — XM Satellite Radio (NASDAQ: XMSR) and SIRIUS Satellite Radio (NASDAQ: SIRI) today announced that they have entered into a definitive agreement, under which the companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $13 billion, which includes net debt of approximately $1.6 billion.

Photo credit: Gizmodo

Under the terms of the agreement, XM shareholders will receive a fixed exchange ratio of 4.6 shares of SIRIUS common stock for each share of XM they own. XM and SIRIUS shareholders will each own approximately 50 percent of the combined company.

Mel Karmazin, currently Chief Executive Officer of SIRIUS, will become Chief Executive Officer of the combined company and Gary Parsons, currently Chairman of XM, will become Chairman of the combined company. The new company's board of directors will consist of 12 directors, including Messrs. Karmazin and Parsons, four independent members designated by each company, as well as one representative from each of General Motors and American Honda. Hugh Panero, the Chief Executive Officer of XM, will continue in his current role until the anticipated close of the merger.

The combined company will benefit from a highly experienced management team from both companies with extensive industry knowledge in radio, media, consumer electronics, OEM engineering and technology. Further management appointments will be announced prior to closing. The companies will continue to operate independently until the transaction is completed and will work together to determine the combined company's corporate name and headquarters location prior to closing.

The combination creates a nationwide audio entertainment provider with combined 2006 revenues of approximately $1.5 billion based on analysts' consensus estimates. Today the companies have approximately 14 million combined subscribers. Together, SIRIUS and XM will create a stronger platform for future innovation within the audio entertainment industry and will provide significant benefits to all constituencies, including:

* Greater Programming and Content Choices — The combined company is
committed to consumer choice, including offering consumers the ability
to pick and choose the channels and content they want on a more a la
carte basis. The combined company will also provide consumers with a
broader selection of content, including a wide range of commercial-free
music channels, exclusive and non-exclusive sports coverage, news,
talk, and entertainment programming. Together, XM and SIRIUS will be
able to improve on products such as real-time traffic and rear-seat
video and introduce new ones such as advanced data services including
enhanced traffic, weather and infotainment offerings.

* Accelerated Technological Innovation — The merger will enable the
combined company to develop and introduce a wider range of lower cost,
easy-to-use, and multi-functional devices through efficiencies in chip
set and radio design and procurement. Such innovation is essential to
remaining competitive in the consumer electronics-driven world of audio
entertainment.

* Benefits to OEM and Retail Partners — The combined company will offer
automakers and retailers the opportunity to provide a broader content
offering to their customers. Consumer electronics retailers, including
Best Buy, Circuit City, RadioShack, Wal-Mart and others, will benefit
from enhanced product offerings that should allow satellite radio to
compete more effectively.

* Enhanced Financial Performance — This transaction will enhance the
long-term financial success of satellite radio by allowing the combined
company to better manage its costs through sales and marketing and
subscriber acquisition efficiencies, satellite fleet synergies, combined
R&D and other benefits from economies of scale. Wall Street equity
analysts have published estimates of the present value of cost synergies
ranging from $3 billion to $7 billion.

* More Competitive Audio Entertainment Provider — The combination of an
enhanced programming lineup with improved technology, distribution and
financials will better position satellite radio to compete for
consumers' attention and entertainment dollars against a host of
products and services in the highly competitive and rapidly evolving
audio entertainment marketplace. In addition to existing competition
from free "over-the-air" AM and FM radio as well as iPods and mobile
phone streaming, satellite radio will face new challenges from the rapid
growth of HD Radio, Internet radio and next generation wireless
technologies.

"We are excited for the many opportunities that an XM and SIRIUS combination will provide consumers," said Gary Parsons, Chairman of XM Satellite Radio and Hugh Panero, CEO of XM Satellite Radio, in a joint statement. "The combined company will be better positioned to compete effectively with the continually expanding array of entertainment alternatives that consumers have embraced since the Federal Communications Commission (FCC) first granted our satellite radio licenses a decade ago."

"This combination is the next logical step in the evolution of audio entertainment," said Mel Karmazin, CEO of SIRIUS Satellite Radio. "Together, our best-in-class management team and programming content will create unprecedented choice for consumers, while creating long-term value for shareholders of both companies. The combined company will be positioned to capitalize on SIRIUS and XM's complementary distribution and licensing agreements to enhance availability of satellite radios, offer expanded content to subscribers, drive increased advertising revenue and reduce expenses. Each of our companies has a strong commitment to providing listeners the broadest range of music, news, sports and entertainment and the best customer service possible. We look forward to sharing the benefits of the exciting new growth opportunities this combination will provide with all of our stakeholders."

The transaction is subject to approval by both companies' shareholders, the satisfaction of customary closing conditions and regulatory review and approvals, including antitrust agencies and the FCC. Pending regulatory approval, the companies expect the transaction to be completed by the end of 2007.

SIRIUS's financial advisor on the transaction is Morgan Stanley and Simpson Thacher & Bartlett LLP and Wiley Rein LLP are acting as legal counsel. XM's financial advisor on the transaction is J.P. Morgan Securities Inc. and Skadden Arps, Slate, Meagher & Flom LLP; Jones Day; and Latham & Watkins LLP are acting as legal counsel.

Related:
Sirius Cuts Year-End Subscriber Forecast: Auto Units To Blame? [internal]

...it means they're not selling as many of the car-based units in the retail environment, because with deals of one-year-free subscriptions, it's more than likely not deals from the OEM's that are to blame. So, I'd expect there to be some serious deals on Sirius (yeah, that joke was obligatory) for-the-car retail units, right? Sure enough, they've gone and cut the prices on the in-car hook-ups on a S50 radio with a rebate on the price of $100. So you know, get 'em while they're hot cheap. – Ray Wert

Sirius cuts year-end subscriber forecast [Marketwatch]

Related:
Ad Watch: Chrysler, Dodge And Jeep Look To Stem Sales Losses With Crappy Satellite Radio Deal [internal]

Yes, we know Sirius sucks compared to XM — but, free satellite radio's free satellite radio, and considering the lease deals the folks at the Chrysler Group are now reported to be offering, I feel like it's almost a pity deal. So pony up your $185 or whatever per month, and you too can save a starving automaker — remember, leasing a Commander, Aspen or Durango can help to feed, clothe and pay for college for the entire family of one engineer in Auburn Hills, MI. Do your part. Two more commercials, one for Chrysler and one for Jeep, can both be found below the jump. [Addendum: Sirius doesn't actually suck compared to XM — the comparison was made to accentuate the Chrysler Group's loan deals. Sirius is a very fine satellite radio system, and hey, they've got Howard Stern — and who doesn't love Howard, right? That is all.]– Ray Wert

Chrysler tries risky lease plan [Detroit News]

Related:
Ad Watch: The Dodge Nitro — Now With Twice The Time, Twice The Heaviness Of The Original Commercial; Ad Watch: The Dodge Nitro's So Heavy, Man [internal]

Hemi Guys won't have to give up their Howard Stern Show (or their Martha Stewart, as the case may be) until at least 2012. DaimlerChrysler recently extended its exclusive deal with Sirius Satellite Radio by seven years, including all US-sold Chrysler Group and Mercedes-Benz vehicles and Freightliner trucks. Sirius expects the Chrysler Group alone to add more than 750,000 subscribers during the 2006 model year. Buyers can choose Sirius as a factory-installed option for $195, which includes a year's subscription to the service and unlimited utterances of "FaFaFoFo."

USA: Sirius locks in DaimlerChrysler until 2012 [Just Auto]

Related:
BMW to Offer HD Radio as a Factory Option [internal]

Alice Hill at Real Tech News offers a rundown on how to install and activate a satellite radio for the car, using a Sirius StarMate satellite unit, plus FM transmitter (via cigarette lighter socket) and remote control. We freely admit to our lack of automotive electronics acumen (and our OCD-level hatred for hanging wires), but it actually seems simple enough for even us to do, without erasing our eyebrows (don't ask). The complete lack of static, however is something we'd really have to get used to.

Project Notebook: Installing a Satellite Radio in Your Car; XM Inks Deal with Zipcar [internal]

Related:
Starting in 2006, XM Radio to Be Standard on all Hyundai Cars [internal]