The US companies Sirius Satellite Radio and XM Satellite Radio have agreed a merger, which will create a company valued at $13 billion.
The deal will see Sirius acquire XM in a $4.6 billion deal, although the merger could face problems.
It is believed that US terrestrial radio companies are likely to make objections and there will of course be regulatory hurdles to be overcome.
Gary Parsons, Chairman of XM Satellite Radio and Hugh Panero, CEO of XM Satellite Radio, said in a joint statement: “We are excited for the many opportunities that an XM and Sirius combination will provide consumers.
“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.”
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