Would combine only two satellite radio companies

• XM news - stock chart
• SIRI news - stock chart

Merger of Equals

• Fixed share exchange

• 4.6 SIRI shares, per XM share
• XM and SIRI shareholders would each own 50% of combined company

• Even board split
• SIRI CEO (Mel Karmazin) to be CEO
• XM CEO (Gary Parsons) to be Chairman

• Merger of Equals

Announced 2.19.07

• Press release
• Form 8-K
• Slide presentation
• Conference call transcript
• Conference call transcript
• Talking points
• Deal FAQs

Developments

• Deal delayed over antitrust approval

• See Regulatory Approvals below

Financial

• XM: JP Morgan
• SIRI: Morgan Stanley

Legal

• XM: Skadden Arps
• SIRI: Simpson Thacher

Merger agreement

XM rights agreement amendment

Deal faced antitrust scrutiny

• Must be cleared by DOJ and FCC

• Antitrust talking points

• House Judiciary Committee held hearings

• Committee press release  2.21.07
• Committee hearing webpage  2.28.07 

Select merger agreement terms

• Reasonable best efforts  §5.3
• Conditions to closing  §6.1
• Termination  §7.1
• Effect of termination  §7.2

Department of Justice

• DOJ clears deal  3.24.08

FCC

• FCC webpage

Developments

• Termination date extended until 5.01.08 2.29.08
• Termination date extended until 5.15.08 

No shop covenant

• Merger agreement §5.4

Break-up fee

• $175mm, reciprocal
• Merger agreement §7.2

Broadcast Companies