Despite previous reports concerning the FCC denying XM and Sirius a chance to merge, the two U.S. satellite radio providers have announced that a merger would indeed take place in a stock-for-stock deal. The two sides were locked in negotiations over the weekend trying to hammer out a final agreement. Previous hints at a merger have been frequently brought up, but the recent blow from FCC seemed to have destroyed all hopes. Veteran media executive Mel Karmazin, currently Sirius CEO, will be CEO of the combined company, and Gary Parsons, now chairman of XM, will hold the same position in the new company. It is unclear what role, if any, XM CEO Hugh Panero will play. The newly born company will have an enterprise value of $13 billion, including $1.6 billion in net debt but with more than 12 million total subscribers. Under the terms of the deal, XM stockholders will get 4.6 shares in Sirius.
Reuters ended their short article with the (dreaded?) words "The deal will need regulatory approval".