Jalopnik Snap Judgment:With conditions like a three year price freeze, the initial baby step of broadcasting each others' content, and opening up the tech standard so consumer electronics makers can provide new radios, this deal really is a huge win for the consumer. Hopefully the new company will even claw its way to profitability for the first time in the history of satellite radio. We're a bit wary of what happens once that three year mark is passed, as this is now a regulated monopoly, but the possibility of ten unwavering channels of "Sounds My Cat Makes" is pretty amazing. [WSJOnline]

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]

GM and OnStar Lead the Way with New Navigation Services

Dallas - OnStar today announced the introduction of two new navigational services to complement and enhance its existing Turn-by-Turn service, the most widely available navigation system on the market. These features solidify GM's leadership in navigation with more vehicles on the road with embedded navigation systems and more options than any other automaker.

The first new service is OnStar Destination Download, which enables OnStar subscribers with screen-based navigation systems to quickly input their destination while on the go via the simple press of a button. The second service, OnStar eNav, allows subscribers with a Turn-by-Turn Navigation-capable vehicle to find and save destinations on MapQuest.com and have those destinations sent to their vehicle's OnStar Turn-by-Turn Navigation system.

"Through OnStar and onboard navigation systems, GM is transforming the category with the broadest range of options to suit customer preferences," said OnStar President Chet Huber. "With 3.1 million model year 2008 vehicles equipped with some form of factory-installed navigation, GM is delivering on our commitment to redefine the availability and functionality of navigation systems in the United States and Canada."

To initiate OnStar Destination Download, users simply press the OnStar blue button to connect with an advisor. Once subscribers provide the advisor with their destination, the destination is downloaded to their navigation screen within seconds. Press the "Go" button on the navigation system to begin the route.

Typically to use a screen-based navigation system, drivers have to bring their vehicle to a stop and place it in park. With OnStar Destination Download, subscribers can have the address of their destination sent directly to their navigation system while still driving, providing a safe, easy and immediate solution.

In addition, OnStar brings more than 10 million point-of-interest records, refreshed every month, to the navigation system. This supplements and greatly enhances the point-of-interest data loaded on navigation DVDs.

OnStar Destination Download will be available on over 80 percent of GM's screen-based navigation vehicle volume or 325,000 Model Year 2009 vehicles. In total, 22 different GM vehicle models will offer this new service.

OnStar's second new service offering, OnStar eNav, allows subscribers to plan their travel destinations on the MapQuest site (www.mapquest.com) and then send those destinations to their OnStar system. When ready to retrieve those directions, subscribers simply press their vehicle's OnStar phone button to access voice-guided commands through which they can select their route. Turn-by-Turn navigation will then launch to guide them on their way.

"At MapQuest we strive to provide our users with easy-to-use features that will save them time and ensure that they find their destination," said Christian Dwyer, Senior Vice President and General Manager of MapQuest. "OnStar eNav is a great addition to our suite of 'Send To' capabilities offering users the convenience of researching and planning online and sending results to a user's preferred device or system."

OnStar eNav will be available retroactively on 2.7 million current Turn-by-Turn capable GM vehicles. Later this year eNav will also combine with OnStar Destination Download to download destinations directly to the vehicle's screen-based navigation system.

OnStar and MapQuest conducted a pilot of eNav beginning in June 2007 with approximately 3,000 customers. A survey of pilot participants showed that 95 percent of them would use eNav at least monthly and 93 percent of the participants agreed that eNav should be offered by OnStar.

"From the pilot we learned that many of our subscribers like to pre-plan their trips, especially when visiting new areas," said Huber. "They appreciated the simplicity of eNav and used it to plan thousands of routes."

Also available to subscribers with screen-based navigation systems is XM NavTraffic, XM's real-time traffic information service is now available in 80 major North American markets. This service feeds comprehensive road condition data such as accidents, traffic backups and road construction to the subscriber's navigation screen. The availability of XM NavTraffic will greatly expand in model year 2009 to the same 22 GM vehicles equipped with screen-based navigation that also feature OnStar Destination Download. XM NavTraffic made its GM debut on the 2005 Cadillac CTS.

Where available, XM NavTraffic subscribers can view a color-coded overlay on their navigation screen indicating the average speed of travel along their planned route.

"GM and OnStar are demonstrating their commitment to providing their drivers with the best in technology, with this impressive expansion of XM NavTraffic across 22 vehicles in the 2009 model year," said Steve Cook, executive vice president, automotive, XM Satellite Radio. "XM NavTraffic provides the most comprehensive information and coast-to-coast updates every minute, ensuring that GM drivers will always have the latest and most detailed information at his or her fingertips. "

"Our varied connected navigation options mean something for everyone whether you drive a Cadillac CTS or a Chevrolet Cobalt," Huber said. "As the leader in navigation our continual goal is to provide GM drivers with useful and convenient services that make the driving experience simpler, safer and more secure."

[Source: GM]

"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]

As we all know, Microsoft Auto software underpins the popular Ford SYNC service, which combines the various in-car systems into one somewhat easy-to-use interface. What if they were able to use that system to advertise to you? How would they use it? According to Microsoft's Martin Thall, it looks as though the GPS is probably the best outlet. Imagine driving down the street and having the navigation screen display an ad for Starbucks with some sort of special incentive for pulling in to get a latte, like offering you a free Mp3.

This isn't a wild idea, in fact I wrote about locational advertising for UrbanCartography.com almost three years ago. This is much better than the current model for the provider because charging a monthly rate will, as with cell phones, allow competition to dictate a lower price or more service. There's also a finite, though large, number of customers.

As Google has already proven, there's almost an unlimited amount of advertising revenue to be gotten (if you don't believe me just google "mesothelioma"). As stewards of this technology, we imagine that companies will be responsible and limit the advertising so that it doesn't become ridiculous. Right.... right?

[CNet via The Truth About Cars]

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

The back of the QX56 contains the brains of this demo vehicle. Understand that the Infotainment Vehicle is completely customized and built for demonstration of all of XM's next generation goods and won't be hitting an Infiniti dealership in this current state. Despite the mess of electronics and other goods, there is actually four different, independent computers powering everything inside the QX56. This ultimately could allow every screen inside of the vehicle to operate independently.

Easily, the most impressive feature is the XM NavWeather, NavInfo and NavTraffic. The NavWeather provides live weather updates on the fly. It divides up the map into a grid. Each square on the grid is approximately 4.3 square miles and provides its own independent weather information. Pair this up with Infiniti's navigation to provide accurate and completely customized driving forecasts.

NavTraffic provides up to the minute traffic information with the navigation. As with other traffic analyzers, roads are color-coded based based on pace of traffic; specific incidents are highlighted and can be opened to provide details. The Hyundai Genesis is one of the vehicles being shown off at the Detroit Auto Show and the first Hyundai that will be including NavTraffic. Many vehicles from Acura, Cadillac, Ferrari, Lexus, Infiniti, Nissan and Toyota also include XM NavTraffic.

NavInfo is a robust suite of information about everything from flight times and statuses, gas prices and more. It is also integrated into the navigation seamlessly.

XM's Parking Link is still a ways away from reality, but the idea is good. On the map, parking garages are highlighted and information is given based on available spaces. It can also display prices. XM also said that a street-level version of Parking Link is far off, but nonetheless under discussion.

Sports scores, stock prices and standard XM radio with a programming guide are also parts of the Infotainment Vehicle and the future technology available from XM.

"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]

Car drivers in urban areas, those long-suffering souls (like us) who live and die by available parking spaces, may get a sweet new service from XM Satellite Radio. We've invented this in our heads a million times: sensors embedded in parking spaces transmit data to a car's navigation system, indicating the percentage of a lot that's full, the closest lot with available parking and other information. The service will likely be offered in designated lots to start. The killer app, of course, would require municipalities to implant sensors in all of their public spaces, thereby obsoleting the "concentric circles outward from the center" technique New Yorkers use to find a coveted space on the street. How awesome would that be?

XM Looking Into Electronic Parking Spot Locator [Edmunds]

Related:
Banned in DC: Private-Car Spaces Nixed in Favor of Car-Sharing Slots [internal]