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.