[hugh]

Canadian Satellite Radio Holdings Inc. , parent company of XM Canada and Sirius Canada Inc. today announced they have entered into a definitive agreement to combine the companies in an all-stock merger of equals with a combined enterprise value of approximately $520 million, which includes long-term debt of approximately $130 million.

Under the terms of the agreement, Sirius Canada shareholders will be issued treasury shares of CSR representing a 58.0 per cent equity interest in CSR immediately following closing of the transaction. The approximate ownership interest in CSR following closing of the combination transaction will be as follows: CSRI Inc., an entity controlled by John Bitove, the chairman of CSR, 30.0 per cent voting interest (22.7 per cent equity interest); CBC/Radio-Canada 20.2 per cent voting interest (15.0 per cent equity interest); Slaight Communications 20.2 per cent voting interest (15.0 per cent equity interest); Sirius XM Radio Inc. (Sirius XM) (NASDAQ:SIRI) 25.0 per cent voting interest (37.1 per cent equity interest); with the remainder being widely held.

 

[hugh]

No surprise here except that XM Canada holds more of a stake than I expected.

 

[hugh]

Now that I`ve had some time to think about it, I envision the following changes going forward.

1. Retention deals will be far less lucrative. I don`t expect $5 a month retention deals anymore.
2. Sirius Online will probably no longer be free
3. Expect new programming packages similar to the U.S.


What I am concerned about is my `lifetime` Sirius Canada subscription. If they try to take it away, I will raise a stink!

 

[spun14]

Seems kind of silly that XM comes out with a bigger controlling stake then Sirius but i guess it depends on the money involved and such. Just hope that they retain the good things about sirius and make available some of the other good things about XM. Would really like the sports packages that XM has.

 

[mark2000]

Hardware

Does anyone know what happened with the hardware situation when this happened in the US?

I have an aftermarket headunit connected to my car stereo and I'd hate to have it go to waste, plus, have to buy new hardware just for compatibility.

 

[starchoice]

Well we saw this one coming.

As far as retention deals, these are still widely available for U.S. subscriptions.

Given that there are still two platforms, it will likely be some time before any call centres are merged.

 

[starchoice]

Does anyone know what happened with the hardware situation when this happened in the US?

I have an aftermarket headunit connected to my car stereo and I'd hate to have it go to waste, plus, have to buy new hardware just for compatibility.

There is no hardware situation. There are still two platforms with whatever equipment you have getting the feed from the corresponding satellite. There has been some talk about consolidating to the XM platform but this is years away.

 

[hugh]

As far as retention deals, these are still widely available for U.S. subscriptions.

I never said there wouldn`t be retention deals, simply that I expect them to be less lucrative.

 

[Chumley]

The merger is subject to the approval of the CRTC.
It ain't over 'til the fat lady sings...

 

[hugh]

Chumley, I suspect the CRTC won`t even bat an eyelash.

 

[mr weather]

There will be no change in the hardware platforms for quite a while. Ideally it should all be one but there are a lot of legacy receivers out there to consider!

3. Expect new programming packages similar to the U.S.

I suspect we'll see similar packages that US subcribers get, i.e. "Best of Sirius", etc.

 

[takeaim]

come on college football and basketball live games besides the 2 games we were stuck with on saturday's this fall. in the states they have practically every major bcs school on each saturday. it's great when you're running aroung on a saturday to keep up with what's going on.

 

[ScaryBob]

Does anyone know what happened with the hardware situation when this happened in the US?

As stated, hardware remains the same. Sirius XM in the US still maintains the illusion of two separate services and must maintain hardware compatible broadcasting services for several years. Dual band radios will become available that can receive both services and offer more comprehensive packages.

 

[scampbell]

Sirius XM in the US still maintains the illusion of two separate services and must maintain hardware compatible broadcasting services for several years.

Do you know if they are planning to launch replacement satellites for both services? I seem to recall some XM ones going up not too long ago.

 

[scrooloose]

Does this mean I will eventually be able to listen to Howard Stern on my XM radio (assuming he doesn't quit satellite ).

-Mike

 

[classicsat]

Does anyone know what happened with the hardware situation when this happened in the US?

I have an aftermarket headunit connected to my car stereo and I'd hate to have it go to waste, plus, have to buy new hardware just for compatibility.

Short term, nothing.

They have made a Sirius/XM combo receiver, which practically was a Sirius and XM receiver in one case, sharing one screen/UI. Each needed separately subbed to each service.

 

[skypilot]

Does this mean I will eventually be able to listen to Howard Stern on my XM radio (assuming he doesn't quit satellite ).

Sure. I'd like to think that they'll each go with 'Best of' packages.

 

[ClaytonG]

I sure hope they don't start charging for Sirius online when/if this goes through. But do hope I can finally get some NHL games!

 

[Wharfe]

Wow! I didn't see this coming.

I hate Sirius, but the damage was already done with the U.S. merger so this is no big deal.. at least XM Canada will be in a better position now. Glad for the amount of control XM will have, because I think they've done a great job in Canada repeater and customer service-wise. I hope this continues.

I know some people who will be happy about this too (Sirius built in one car, XM in another.. now could get 2nd radio price I assume)

With similar content available on both services, that'd be one less thing to worry about when shopping.. comes down to reception, hardware and sound quality I guess.. which doesn't concern a lot of people.

Interested to see this unfold and get more details on how they will do this with regards to hardware, etc..

 

[beddows]

Ditto on the lifetime sub concern although I can't see them not grandfathering that. CBC 1 better stay. I went with Sirius as I spend 1/2 a year in southern Mexico (hence the desire for CBC 1) & Sirius works that far south whereas XM is spotty. I suspect CBC will now get extended to US XM subs, just as NPR was when the merger happened down south. I can't see much of a change on the lineups in Canada.