XM and Sirius to finally merge in Canada

By on November 25, 2010, 10:11 AM
XM Canada and Sirius Canada are finally merging their satellite radio operations, assuming the CRTC gives the two regulatory approval. That's right, XM and Sirius never merged in Canada, and now the two have decided it's time to follow their American counterparts, according to CBC.

The two companies want to merge in an all-stock deal valued at $520 million (including $130 million in long-term debt), with the biggest goal being saving costs by having two audiences merged into one. The combined company would boast a total user base of 1.7 million. "As a combined entity, XM Canada and Sirius Canada will deliver exceptional value to subscribers, and enhance the long-term success of satellite radio in Canada," John Bitove, chairman of Canadian Satellite Radio, said in a statement.

Canadian Satellite Radio Holdings is the parent company of XM Canada. Sirius Canada, the biggest satellite radio operator in Canada, is split three ways: 40 percent owned by CBC Radio, 40 percent by Slaight Communications, and 20 percent by Sirius XM in the US.

Sirius and XM merged late last year to form Sirius XM, after the FCC gave the green light. The FCC took quite sometime to give the two approval; we'll see how long the CRTC takes to make a decision on the Canadian side.





User Comments: 2

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jsv004 said:

With mp3 technologies and the smartphone, internet radio is going to be the company's doom. Satellite radio is a dying breed, and people that are subscribed, are the people that aren't very tech savvy or got duped into getting it by their car dealer, instead of paying monthly you can get a better service with out the subscription if you just invest in a mp3 with internet access or a smartphone.

Guest said:

You obviously only listen to music when you listen to the radio. To be honest, you could not possibly be more wrong in your assumptions.

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