Sirius Xm News

Here are a few answers to common questions I have been reading around the net concerning the merger between Sirius and XM. Though not 100% official these answers are taken straight from press releases and interviews Mel Karmazin has done post merger.

What are the new pricing plans? Will my Monthly Bill go up now?

If you do not listen to Howard Stern (Premium Channel) there are $6.99-9.99 pricing plans, so you will actually save money on your monthly bill. You can add on optional premium channels but as long as you don’t get into any XM programing your bill will never go above the current price of $12.95. I repeat as long as you don’t add on any XM programing your bill will never go above $12.95.

So to sum up above if you are paying $12.95 now, do nothing. You will have the same programing and same price as you always had as a Sirius Subscriber.

Can I get XM channels yet? When will I be able to get XM programming?

As of right now you can not get XM channels on your Sirius Radio. There are plans for an Al La Cart system but for right now your reciever can not get transmissions from the XM Satellites. Mel said that new radios are already designed but they are not going to be available until they start mass production.

What you will be able to get is a “Best of XM” package that consists of 11 XM Channels wich will brodcast over Sirius’s current satellites. So you will not need a new radio but there will most likely be a price involved with this service. Also what 11 channels are being offered is not known at the moment.

How long before I can get MLB Radio on my current Sirius Radio? I want it now, why is it taking so long?

The MLB will not be available to Sirius right away. There are currently licensing issues that need to be worked out with no deffinate time table. The MLB will not let Sirius brodcast. So your best option is to contact the MLB and not Sirius. The same goes for NASCAR on XM.

What about Howard Stern? I’m on XM and I’ve been waiting for this day to happen, when can I hear him?

Howard Stern will be available to XM subscribers this Fall. No specific date was given yet but it could be as close as September. It’s also unclear if both Howard 100 and 101 will be included also he will not be a part of the “Best of Sirius” package since it’s considered premium content.

What about my current receiver? Do I need to buy a new one?

No not unless you need a new one. You existing WILL NOT BECOME OBSOLETE. You will still be able to enjoy Sirius or XM as you have been in the past.

What about my Lifetime Subscription?

You will still have your lifetime subscription. How it will work with different Sirius/XM packages is not known.

What about my Favorite channels? Are they going to remove channels? How will they do this?

They will be slowly merging channels from XM into Sirius programming. This means that some of your favorite channels may get replaced. If XM has a better Hip-Hop channel it may replace one of Siriu’s, but if Sirius has a better performing Country channel it will stay and replace one from XM.

No official word but the 50’s, 60’s, 70’s and 80’s channels will most likely be merged and be the same on both Sirius and XM.

I have a Factory XM radio in my car with DVD Monitors, can I convert the XM Radio and Screens to Sirius Backseat TV?

NO

That is it for now, as I gather more Questions I will post them. The main question I’m trying to find out right now is how Internet Streaming will work with the newly merged companies.

Just a small update.

Pretty interesting talk, but still nothing that we already don’t know about.

Link here http://www.marksfriggin.com/news.htm#wed

I will throw some audio up later if I can find it.

Inside the details of the deal, with Mel Karmazin, Sirius Satellite Radio president/CEO

Here is a link to the video on CNBC

http://www.cnbc.com/id/15840232?video=808001565

Will have links/info on Stern and O&A as it comes in, will most likely be the same news though.

Here are some highlights from the video, nothing really new here though.

Mel says they are fully funded now, and investors will see

the value of the company.

Free cash flow positive for 2009.
New Satellite this year.

David Fabre (Interviewer) gets frustrated with him Mel throught interview.

3.5 million new subscribers per year
depending on Detroit.

Mel admits stock sucks and it’s embarassing!

Here is Audio from Mel Karmazin on Opie and Anthony

SIRIUS XM Radio Chosen as New Corporate Name
Combined Company Has Over 18.5 Million Subscribers, Annualized Second Quarter Revenue Exceeding $2.4 Billion
Company to Offer Consumers Best of Both Services, While Maximizing Significant Efficiencies
SIRIUS XM Reiterates Financial Guidance; Expects 2009 Synergies of $400 million and 2009 Adjusted EBITDA of over $300 Million

SIRIUS Satellite Radio and XM Satellite Radio today
announced that they have completed their merger, resulting in the
nation’s premier radio company. The new company plans to change its
corporate name to SIRIUS XM Radio Inc. The combined company’s stock
will continue to be traded on the Nasdaq Global Select Market under the
symbol “SIRI.”

SIRIUS XM Radio begins day one with over 18.5 million subscribers,
making it the second-largest radio company, based upon revenue, in the
country; and, based upon subscribers, the second largest subscription
media business in the U.S. With under 10% penetration of the home and
car market, the opportunity for continued growth is significant.

“I
am delighted to announce the completion of this exciting merger between
SIRIUS and XM,” said Mel Karmazin, CEO of SIRIUS XM Radio. “We have
worked diligently to close this transaction and we look forward to
integrating our best-in-class management teams and operations so we can
begin delivering on our promise of more choices and lower prices for
subscribers.”

“Every one of our constituencies is a winner. Combined, SIRIUS XM
Radio will deliver superior value to our shareholders. By offering more
compelling packages and the best content in audio entertainment, we are
well positioned for increased subscriber growth. Our laser focus on
subscribers will continue and listeners can be assured that there will
be no disruption in service. We also believe that the completion of the
merger will eliminate any confusion that has been lingering in the
marketplace,” added Karmazin.

XM shareholders will receive 4.6 shares of SIRIUS common stock for each share of XM.

Competitive New Options for Consumers

SIRIUS
XM Radio broadcasts more than 300 channels of programming, including
exclusive radio offerings from Howard Stern, Oprah, Opie & Anthony
and Martha Stewart, among others. SIRIUS XM Radio will offer these
expanded options to consumers through arrangements with the world’s
leading automakers and its relationships with nationwide retailers.

As
a result of the merger, SIRIUS XM Radio will also be able to offer
consumers new packages in audio entertainment, including the first-ever
a la carte programming option in subscription media. In addition to two
a la carte options, the new packages will include: “Best of Both,”
giving subscribers the option to access certain programming from the
other network; discounted Family Friendly packages; and tailored
packages including “Mostly Music” and “News, Talk and Sports.” The
first of the new packages will be available in the early Fall.

“One
of the most exciting benefits of this transaction is the ability to
offer subscribers the option of expanding their subscriptions to
include the Best of Both services. Given the respective popularity of
exclusive programming on both SIRIUS and XM, we expect many subscribers
will upgrade their current subscription,” said Karmazin.

“The
upside potential for both consumers and shareholders is huge. Consumers
have the ease of adding premier programming without purchasing a new
device. For shareholders, this kind of organic growth is a key part of
the company’s future and the success we expect to see,” said Karmazin.

As
promised when the merger was first announced, existing radios will
continue to work and every subscriber has the option of maintaining
their current service package.

Benefits for Shareholders Begin Immediately, Integration Already Under Way

SIRIUS XM Radio expects to
begin realizing the synergies expected from this transaction immediately.

“In
addition to realizing significant potential revenue growth, the
management team will move quickly to capitalize on the synergies that
many analysts have predicted for this combination. We expect to begin
achieving those synergies without sacrificing any of the world-class
programming and marketing we are known for,” said Karmazin.

The
company today also reiterated guidance for the combined SIRIUS XM
Radio. Based upon a preliminary analysis, the combined company expects
to realize total synergies, net of the costs to achieve such synergies,
of approximately $400 million in 2009; to post adjusted EBITDA
exceeding $300 million in 2009; and to achieve positive free cash flow,
before satellite capital expenditures, for the full year 2009. The
company also expects that both synergies and adjusted EBITDA will
continue growing beyond 2009.

“We have all the
tools necessary to begin executing as a combined company with high
aspirations for subscriber growth and greater financial performance in
part from the significant synergies that we begin realizing literally
today — on Day One. We are moving quickly to integrate the
operations,” said Karmazin.

The corporate headquarters will be
located in New York, NY and XM Satellite Radio, the company’s
wholly-owned subsidiary, will remain headquartered in Washington, DC.

Effective after the close of the market yesterday, trading in XMSR common stock on the Nasdaq Global Select Market ceased.

This is all great news but I would like to hear from Mel about the stock that is down to $1.70 as we speak.

Straight from the FCC website is the official announcement from the FCC green lighting the merger of Sirius and XM.

– Revenue of $283 Million, Up 25% Year Over Year
– Total Subscribers of More Than 8.9 Million, Up 25% Year Over Year
– Adjusted Loss from Operations Improves 70% Year Over Year

SIRIUS Satellite Radio today announced preliminary
second quarter 2008 financial results, including a 25% increase in
revenue to $283 million, total subscribers in excess of 8.9 million and
a 70% decrease in its adjusted loss from operations.

As of June 30, 2008, SIRIUS had 8.924 million subscribers, an
increase of 25% from June 30, 2007 subscribers of 7.143 million. Retail
subscribers increased 7% in the second quarter 2008 to 4.677 million
from 4.365 million in the second quarter 2007. OEM subscribers
increased 53% in the second quarter 2008 to 4.247 million from 2.778
million in the second quarter 2007. Total gross subscriber additions
for the quarter ended June 30, 2008 were 1.029 million, compared to
1.002 million for the quarter ended June 30, 2007 and 1.003 million for
the quarter ended March 31, 2008. During the second quarter 2008 SIRIUS
added 279,820 new net subscribers, consisting of 246,221 from the OEM
channel and 33,599 from the retail channel.

Second
quarter 2008 average monthly self-pay customer churn rate was 1.6%,
down from 2.1% in first quarter 2008. The second quarter 2008
conversion rate is estimated to be approximately 48%, up from the first
quarter 2008 conversion rate of approximately 47%.

Total
revenue for the second quarter 2008 is expected to be approximately
$283 million, an increase of 25% from the second quarter 2007 total
revenue of $226 million. Operating expenses, excluding depreciation and
stock based compensation, are expected to remain approximately flat in
the second quarter 2008 as compared to the second quarter 2007. Second
quarter 2008 adjusted loss from operations is expected to be
approximately $24 million, an improvement of 70% from the adjusted loss
from operations of $79 million in the second quarter 2007.

The Federal Communications Commission gave the merger a green light late
Friday after Commissioner Tate voted to approve it,
breaking what had been a 2-2 tie, according to published media reports.

Tate’s blessing came only after the companies agreed this week to pay a
total of $19.7 million to the government for violations of FCC rules,
according to the Associated Press.

Conditions on the approval
included a series of consumer protection conditions, including a
three-year cap on prices, setting aside 8% of their channel capacity
for minority and non-commercial programming and payment of a $19.7
million penalty for past FCC rule violations, reports Reuters.

The joint company will have
to build radios that receive both Sirius and XM. Also, FCC will conduct
an inquiry into whether HD terrestrial radio signals can be built into
all satellite radios.

“I think it’s going to be, in the end, a good thing for consumers and
be in the public interest,” Federal Communications Commission Chairman
Kevin Martin told The Associated Press. “Consumers will enjoy a variety
of programming at reduced prices and more diversified programming
choices.”

It’s about damn time!!!!!!

More reports as the work week gets into gear.

I’m sure there will be allot to report on in the following weeks. Everyone have a great weekend.

The merger had still not been voted on this Friday morning as everyone was expecting. Apparently there is a hold-up on a vote by the
commissioners on a consent decree.

Even thought Martin was expected to sign off on the merger there is a thought that the hold up could be administrative or strategic. A source said commissioner Deborah Taylor Tate was not planning to vote
on the merger until that enforcement action was taken, and she already
cast her vote for it. Commissioner Robert McDowell also voted to
approve it.

That leaves the only vote left (Martin) to finally end this extremely long merger process.

The two commission Democrats haven’t voted on the enforcement action and they are already on record opposing the
merger, so they are unlikely to tip the balance even if they agree that
the companies should pay a combined $20 million for the
violations related to the placement and power levels of equipment.

I guess we will be waiting until next week to finally get a word on this. Or maybe two weeks from now, or three?
The way this has been going nothing would surprise me anymore.

[Via: B&C]

From Sirius Investor Relations Website:

XM Satellite Radio Holdings Inc. and SIRIUS Satellite
Radio today confirmed that the companies are in
discussions with the Enforcement Bureau of the Federal Communications
Commission to settle outstanding enforcement matters.

As
previously disclosed by the companies, in 2006, the FCC commenced
investigations regarding the compliance of certain radios that include
FM transmitters with the Commission’s rules, and the compliance of
certain terrestrial repeaters with the special temporary authority
granted by the Commission. The companies hope to enter into a Consent
Decree with the Federal Communications Commission terminating these
inquiries.

As part of a possible Consent Decree, the companies expect to agree, among other things, to:

– adopt comprehensive compliance plans, and take steps to address any potentially non-compliant radios
remaining in the hands of consumers;

–
in the case of XM, within 60 days of the order adopting the Consent
Decree, shut down 50 variant terrestrial repeaters, and shut down or
bring into compliance an additional 50 variant terrestrial repeaters;

–
in the case of SIRIUS, bring into compliance or shut down up to 11
variant terrestrial repeaters within 60 days of the order adopting the
Consent Decree. These terrestrial repeaters were shut off by SIRIUS in
October 2006; and

– make a voluntary contributions to the
United States Treasury of approximately $17 million in the case of XM,
and approximately $2 million in the case of SIRIUS.

There can
be no assurances regarding the ultimate outcome of these enforcement
proceedings, including whether the FCC will approve Consent Decrees
under discussion with the companies.

This deal is done everyone. There is work coming in that Tate made her Yes vote. Official word soon.

According to the WSJ Commissioners at the Federal Communications Commission have reached a tentative deal to approve the proposed merger between Sirius and XM Satellite Radio.

Tate is expected to cast the final and deciding vote on the deal shortly, the officials said. In exchange for her vote, Ms. Tate and FCC Chairman Kevin Martin have been negotiating with the companies to pay upward of $20 million in fines for violations regarding tower locations and power limits, people close to the negotiations said.

Video below: